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Technical Market Indicatorslet us understand what the different types of
TECHNICAL MARKET INDICATORS in brief
😎Trend indicators are stronger than any other technical market indicator:-
A market trend is a tendency of a stock market to move in a particular direction over time
These trends are classified as secular trends for long time frames, primary trends for medium time frames, and secondary trends
lasting short times
Trend indicators are always lagging indicators as a trend has to establish first, before it can be measured
😎 Breadth indicators are designed to confirm a price action or an existing trend
Breadth indicators are measuring the overall strength of a price action or an existing trend by analyzing the proportion of the
overall stocks or volume that are participating in the market’s up or down move
Some measures of market breadth involve the volume of rising stocks compared to the volume of falling stocks
😎 Measure the investing behavior of certain trader groups
Contrarian market indicators attempt to measure the overall bullish or bearish attitude towards the market among traders and
investors (market sentiment) or tracking down the investing behavior of smart money and dumb money
Those indicators lead and/or confirm price actions
Somehow they are a mixture between trend- and breadth indicators and oscillators
😎 Oscillators are leading indicators as they lead a price move
Oscillators are leading indicators as they lead a price move
They move above and below a centerline (center oscillators) or are banded (banded oscillators) between two extreme values
The banded oscillators are designed for discovering shortterm overbought or oversold conditions. As the value of the
oscillator approaches the upper extreme band the stock market is deemed to be overbought, and as it approaches the lower
extreme it is deemed to be oversold
ALL THESE INDICATORS HAVE THEIR OWN ADVANTAGES AND COMPLICACY
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