How a Technical Analyst Uses the Stochastic Oscillator
The Stochastic Oscillator was developed by George Lane in 1958. The Stochastic Oscillator is a technical indicator that looks to predict turning points in price through the momentum of a security’s price, by comparing the closing price of the security relative to the high-low range over a given time period, most commonly 14 days. Because of its adaptability and ease of application, the Stochastic Oscillator is a favourite amongst traders and investors worldwide.How a Technical Analyst Uses Moving Averages
A moving average is the average (or mean) price of a security over a period of time. The moving average is used to identify trend direction as well as to generate buy and sell signals. Moving averages are used by traders and investors to identify current trends and trend reversals. Moving averages also provide an indication of support and resistance levels.How a Technical Analyst Uses Fibonacci Ratios
Fibonacci ratios are a popular technical indicator used by traders as part of their trading process. Developed by Leonardo Fibonacci who lived in the 12th and 13th centuries, he discovered that the proportion of things in nature could be expressed through the use of numerical ratios. The Golden Rule, as it is named, relates to how the proportion of things compare when you look at the bigger picture.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The RSI was developed by J. Welles Wilder and first featured in his book “New Concepts in Technical Trading Systems” published in 1978. The RSI is one of the most popular oscillator indicators amongst technical analysts as it visually compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.How a Technical Analyst Uses the Commodity Channel Index
The Commodity Channel Index (CCI) was developed by Donald Lambert and published in 1980. The Commodity Channel Index is an oscillator indicator, used in technical analysis, which illustrates where a security or asset has been overbought or oversold.