Article Using Technical Indicators To Develop Trading Strategies

T2W Bot

Staff member
1,454 55
Indicators, such as moving averages and Bollinger Bands, are mathematically-based technical analysis tools that traders and investors use to analyze the past and predict future price trends and patterns. Where fundamentalists may track economic reports and annual reports, technical traders rely on indicators to help interpret the market. The goal in using indicators is to identify trading opportunities. For example, a moving average crossover often predicts a trend change. In this instance, applying the moving average indicator to a price chart allows traders to identify areas where the trend may change. Figure 1 shows an example of a price chart with a 20-period moving average.
/system/images/5280/original/Fig1.gif?1519816078 
Fig1: QQQQ with a 20-period moving average. Source: TradeStation.
 
Strategies, on the other hand, frequently employ indicators in an objective manner to determine entry, exit and/or trade management rules. A strategy is a definitive set of rules...
Continue reading...
 
Last edited by a moderator:

AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock