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.
Indicators
MACD indicator overview
The MACD, along with the Moving Average, is one of the main indicators of technical analysis that is actively used by traders of any level. In fact, it is a combination of 2 moving averages, complemented by a histogram that clearly shows the order in which lines are built and the distance between them. Using the tool, you can find reversal points, recognize market divergence, and determine the intensity of trend movement. So, let’s conduct a detailed review of the MACD.
Alligator indicator overview
The purpose of the overwhelming majority of technical analysis indicators is to assist in the timely recognition of trend reversals. This moment represents the optimal point for opening trades on an increase or decrease. Bill Williams’ Alligator is one of the leading trend indicators, and it consists of 3 Moving Average lines and fractals as an additional function. In this article we will conduct a detailed review of this tool, as well as consider simple trading strategies based on it.
The Ichimoku Cloud
One of the most interesting means of price chart analysis on the options market today is an automatic indicator named Ichimoku Kinko Hyo (it is more often simply called the “Ichimoku”). It was created to improve the quality of asset price forecasting on candlestick charts, since on “clean” quotes, it is definitely not always possible to accurately determine the optimal entry points for trading.
The Momentum Oscillator indicator
The Momentum Oscillator is a type of technical analysis tool that measures the amount of change in the value of a certain asset over a period of time. Its main feature is that this tool is capable of identifying emerging trends in price movement and establishing optimal entry points on trend movement, moreover doing that ahead of the main chart and leveling out the possibility of signal delay.
