👻5 INDICATORS FOR BEGINNERS👻

🍉Moving Average
A moving average helps cut down the amount of noise on a price chart. Look at the direction of the moving average to get a basic idea of which way the price is moving. If it is angled up, the price is moving up (or was recently) overall; angled down, and the price is moving down overall; moving sideways, and the price is likely in a range.

A moving average can also act as support or resistance

🍉Bollinger Bands
Bollinger Bands are a form of technical analysis that traders use to plot trend lines that are two standard deviations away from the simple moving average price of a security. The goal is to help a trader know when to enter or exit a position by identifying when an asset has been overbought or oversold. Bollinger Bands were designed by John Bollinger.

Bollinger Bands help by signaling changes in volatility. For generally steady ranges of a security, such as many currency pairs, Bollinger Bands act as relatively clear signals for buying and selling

🍉Relative Strength Index (RSI)
The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of the pair’s recent price changes to evaluate overvalued or undervalued conditions in the price of that pair.

It can also indicate pairs that may be primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell.

The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.

🍉MACD(Moving Average Convergence Divergence)
The concept behind the MACD is fairly straightforward. Essentially, it calculates the difference between an instrument's 26-day and 12-day exponential moving averages (EMA). In calculating their values, both moving averages use the closing prices of whatever period is measured.

On the MACD chart, a nine-period EMA of the MACD itself is also plotted. This line is called the signal line, which acts as a trigger for buy and sell decisions. The MACD is considered the "faster" line because the points plotted move more than the signal line, which is regarded as the "slower" line.

🍉On-Balance Volume (OBV)
On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in the price.

The theory behind OBV is based on the distinction between smart money – namely, institutional investors – and less sophisticated retail investors. As mutual funds and pension funds begin to buy into an issue that retail investors are selling, volume may increase even as the price remains relatively level. Eventually, volume drives the price upward. At that point, larger investors begin to sell, and smaller investors begin buying.

🌺Hope u like my article. Please tell me what is YOUR favortie indicator?

Love, Anabel❤️

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