Intro To Indicators
BM Academy
Indicators
“The Lower You Scroll, The Higher The Difficulty”
These indicators help traders and investors understand market dynamics, identify potential trading opportunities, and assess overall market conditions. By analyzing these indicators, market participants can make more informed decisions and navigate the markets with greater confidence.
What types of indicators are there?
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These indicators focus on price movements and patterns in the market. Examples include moving averages, Bollinger Bands, and support and resistance levels.
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Volume indicators measure the trading activity in the market, providing insights into the strength of price movements. Examples include volume bars, on-balance volume (OBV), and volume-weighted average price (VWAP).
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Momentum indicators assess the speed and strength of price movements. They help identify potential trend reversals and overbought or oversold conditions. Examples include the relative strength index (RSI), stochastic oscillator, and moving average convergence divergence (MACD).
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Volatility indicators measure the degree of price fluctuations in the market. They help identify periods of high or low volatility, which can impact trading strategies. Examples include average true range (ATR), Bollinger Bands (which can also be considered a volatility indicator), and the VIX index.
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Breadth indicators analyse the participation and strength of market movements across a broad set of securities or indexes. They provide insights into the overall market sentiment and the level of market participation. Examples include advance-decline line, new highs-new lows, and the McClellan Oscillator.
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Sentiment indicators gauge the overall market sentiment or investor psychology. They can help identify potential market tops or bottoms based on the prevailing sentiment. Examples include the put-call ratio, investor surveys, and the Fear and Greed Index.