These technical indicators measure the direction and strength of a trend by comparing prices to an established baseline. The infographic differentiates between four different types, including trend, momentum, volatility, and volume indicators. It differentiates between lagging and leading indicators, and also explains some basic tactics for incorporating these markers into an overall investment strategy. Today’s infographic comes to us from, and it explores the fundamentals behind 12 of the most commonly-used technical indicators. But, even for an investor more focused on the underlying fundamentals of companies, learning how these indicators work can provide added conviction on new or existing trades. Many traders swear by them to help with the timing of their trades or to alert them of trends. However, if you dabble in the stock market on a day-to-day basis, or if you simply want to know what drives the thinking of other market participants, it can be very beneficial to understand the basics of technical indicators. If you’re planning to hold a portfolio of blue chip stocks well into retirement, then short-term movements in the market are not likely your biggest worry.
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