ADX is an indicator of average directional movement. A combined tool that shows the activity of upward and downward price movement.
The Bollinger Bands (BB) is a trend indicator created by John Bollinger based on the Moving Average. When the tool is added to the chart, a price channel is formed which shows the factor of price deviation from the “normal range,” calculated using a certain formula. Bollinger Bands is a multifunctional solution that can be used to determine the level of market volatility, find reversal points, and filter the signals of other instruments. In this article, we will review the tool, its history, and different approaches to its practical application.
There are thousands of various indicators of technical analysis, but if we want to look at just the main tools, we can literally count them on our fingers. The main tool is the Moving Average and it serves as the basis of the overwhelming majority of other indicators, including both trend ones and oscillators as well. In this article we will consider this tool from the point of view of theory and practice.
Trend indicators and oscillators are the most common types of technical analysis tools. Other types of indicators, like volume indicators for example, are used relatively rarely. If the main trend indicators are Moving Average, Bollinger Bands, MACD, and Alligator, then the main oscillator is RSI, which is the Relative Strength Index. In this article we will conduct a detailed review of this tool.