6
Leading technical indicators in the market
What topics are covered in this chapter?
The leading technical indicators covered here are:
- momentum
- relative strength index (RSI)
- directional movement (DM)
- parabolic stop and reverse (SAR)
- stochastics
- on balance volume (OBV).
What are the objectives?
- To anticipate overbought market conditions and generate a sell signal accordingly.
- To anticipate oversold market conditions and generate a buy signal accordingly.
Introduction
It is important to know about the leading indicators that other world traders use so that we can anticipate the next wave of buying on support or selling on resistance. A leading indicator anticipates if the market is overbought or oversold.
A leading indicator based on ...
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