What are some popular technical indicators used in trading?

1. Moving Average – An indicator of trend analysis

2. Bollinger Band- A volatility indicator

3. MACD – An indicator for trend confirmation

Hey there!

A few of the most commonly used technical indicators, in no particular order are:

1) Moving Average Convergence Divergence (MACD)

Essentially, MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD, called the "signal line" is then plotted on top of MACD, triggering a buy/sell signal when MACD crosses above the signal line/below the signal line

2) Relative Strength Index (RSI)

To summarise, RSI is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. The RSI is displayed as an oscillator and can have a reading from 0 to 100, where a reading of over 70 can be an indication of overbought/overvalued conditions and may be positioned for a trend reversal/pullback. A reading below 30 would suggest that the reverse is true.

3) Bollinger Bands

Similar to RSI, Bollinger Bands also measure overbought/oversold conditions. It is a technical analysis tool defined by a set of lines plotted two standard deviations away from the 20 Day Simple Moving Average of the asset price. The closer the current asset price is to the upper limit of the bollinger bands, the more overbought it is, vice versa for oversold conditions.