Technical Indicators
The 'technical analysis' approach to investing is based on cycles or repeating price patterns. Some of the technical indicators used to measure and project patterns include oscillators, moving averages, and candlestick charts.
- Oscillators: These illustrate the price and volume cycles thereby allowing the investor/trader to identify relevant peaks and valleys within the trend itself.
- Moving Averages: There are many types of moving average indicators for example the exponential moving average show a slightly different version of the price trends by smoothing out the short term fluctuations.
- Candlestick charts: This is a specialized type of price chart that provides different information about price activity than the standard "mountain" style chart.
Read more about this topic: Stock Market Cycles
Famous quotes containing the word technical:
“When you see something that is technically sweet, you go ahead and do it and you argue about what to do about it only after you have had your technical success. That is the way it was with the atomic bomb.”
—J. Robert Oppenheimer (1904–1967)