TECHNICAL INDICATOR FINAL EXAM !!

Technical indicators measure the direction and strength of a trend by comparing prices to an established baseline. They are a way to assess the price of a stock and estimate its future trajectory...... They help study how price movements in the past emulate the future. Technical indicators are used alot in equity and forex markets buy aren't limited to either of these.

POP QUIZ: (#1) WHAT ARE SOME OTHER MARKETS WHERE TECHNICAL INDICATORS ARE USED OR ARE USEFUL ??

As mentioned before,Technical indicators are used to see past trends and anticipate future moves. Moving averages, relative strength index, and stochastic oscillators are examples of technical indicators. Trading strategies, including entry, exit, and trade management rules, often use one or more indicators to guide day-to-day decisions. The goal when using indicators is to identify trading opportunities. For example, a moving average crossover often signals an upcoming trend change. In this instance, applying the moving average indicator to a price chart allows traders to identify areas where the trend may run out of gas and change direction, which creates a trading opportunity.

POP QUIZ (#2) WHAT ARE THE FOUR MAIN TYPES OF TECHNICAL INDICATORS ??

Technical analysis is a tool, or method, used to predict the probable future price movement of a security – such as a stock or currency pair – based on market data. The theory behind the validity of technical analysis is the notion that the collective actions – buying and selling – of all the participants in the market accurately reflect all relevant information pertaining to a traded security, and therefore, continually assign a fair market value to the security. Technical traders believe that current or past price action in the market is the most reliable indicator of future price action. Technical analysis is not only used by technical traders. Many fundamental traders use fundamental analysis to determine whether to buy into a market, but having made that decision, then use technical analysis to pinpoint good, low-risk buy entry price levels.

POP QUIZ (# 3) HOW ARE TECHNICAL ANALYSIS AND FUNDEMENTAL ANALYSIS USED TOGETHER ??

I hope this helps !! I learn something new every day when it comes to trading, cryptocurrency, and the markets. Knowledge is the strength of wisdom.