What are Some Common Techniques in Technical Analysis?
There are several techniques and tools used in technical analysis, including:
Moving Averages: These are used to smooth out price data to identify trends over a specific period. Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. MACD (Moving Average Convergence Divergence): An indicator that shows the relationship between two moving averages of a securityâs price. Bollinger Bands: A volatility indicator that consists of a set of three lines drawn in relation to a security's price. Fibonacci Retracement: A tool used to identify potential reversal levels by measuring the distance between significant price points.