Overlays, Indicators, and Oscillators
Technical Analysis is a set of tools and techniques used either to identify the market trend and/or to identify if the market is trading in overbought or oversold levels. Here are the basic categories and tools of technical analysis traders use worldwide.
-
Overlays
-
Price-based indicators
-
Volume-based indicators
-
Market and Breadth Indicators
Hundreds of different indicators are available today. Most traders nowadays use technical analysis inside MetaTrader4. Other trading platforms offer a wide variety of indicators, such as the NinjaTrader platform, which includes additionally astonishing charting capabilities. Even Ms. Excel can be used as the basic framework for implementing Technical analysis.
» Review Trading Systems at FxPros.net
Important Technical Analysis Indicators
Here is a list of almost all popular Technical Analysis Indicators and Overlays. These tools may be used by all kinds of traders: Forex Traders, Stock Traders, Commodity Traders, etc.
■ Overlays
Overlays are incorporated within price charts:
-
Support (↓_ ) and Resistance (↑¯ ) Levels
-
Trend Lines (/ or \)
-
Channels (Two Parallel Trend Lines)
-
Pivot Points (The average value of High, Low, and Close Prices, for a certain period)
-
Bollinger Bands (A Range between 2 bands deriving from the Price of Standard Deviation)
-
Price Channels (The channel formed from the highest highs and the lowest lows)
-
Moving Averages (Very popular, Simple, or Exponential Moving Averages)
-
Moving Average Envelopes (Two simple moving averages forming a price channel)