5
The tools that professionals use
What topics are covered in this chapter?
There are two groups of technical indicators:
- lagging technical indicators
- leading technical indicators
Here we examine the lagging technical indicators:
- simple moving average
- exponential moving average
- moving average convergence divergence (MACD)
Leading indicators are examined in the next chapter.
What are the objectives?
The objectives of calculating and using moving averages are:
- To smoothen out fluctuations and see the underlying directional trend.
Introduction
A technical indicator is a technical analysis tool used by traders and is often used in trading systems to give appropriate buy or sell signals. A technical indicator is defined as a mathematical ...
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