Trade Stock Indices

How to Interpret/Analyze Stock Index Indicators Explained

To start with technical analysis, beginners should learn all the indicators first. Then pick the ones that fit their style.

A


B


C


D


E


G


H


I


K


L


M


P


R


S


T


U


W

Indicators Technical Analysis

Most indicators show up separately from the main chart, usually below it. That's because they often use a different scale than the price chart.

Various other technical analysis tools are overlaid directly onto the price chart, such as MAs (Moving Averages) and Bollinger Bands: these are categorized as price over-lays.

A Compilation of Widely Used Indicators for Technical Market Analysis:

Moving averages, or MAs, create signals from chart studies. Prices above MA lines signal buys. Prices below them signal sells. You can also trade when MAs cross each other.

The MACD is a trend-following indicator that features a signal line used to generate a buy signal when above the MACD center line or a sell signal when below it.

Volume indicators measure trend strength in markets. High volume at bottoms signals new trends starting. Low volume points to sideway or range-bound action.

Bollinger Band indicates potential points at which the market movements are most likely to change. Technical analysis Index setups of this technical indicator that shows sharp movements in the price action are due to bands getting close (the Bollinger band squeeze). At the same time, the prices which go beyond one of the outer bands are likely to reach the other band. Bollinger Bands follow a certain trend either up or down when there is a market trend.

When it comes to daily technical analysis, these are some of the most commonly used indicators. Visit the strategies section to learn how to create an indicator-based system and to discover how to integrate these market analysis signals into a plan.

Learn More Topics and Tutorials:

Stock Indices Broker