What basic indicators should I know when analyzing a trade?

Modified on Mon, 12 Jan at 9:50 AM

Some commonly used indicators are: 

Moving Averages (SMA/EMA): Help identify the trend by smoothing price data. Price above MA is often seen as bullish, below MA as bearish. 

RSI (Relative Strength Index): Measures momentum on a scale of 0–100. Above 70 is overbought, below 30 is oversold. 

Bollinger Bands: Show volatility around a moving average. Price near the upper band can indicate overbought; near the lower band, oversold. 

MACD: Uses two EMAs to show trend strength and momentum via line crossovers. 

Volume: Shows how many shares/contracts are traded, helping confirm strength of a move. 

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