Trading Indicators

Exponential Moving Average (EMA)

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The Exponential Moving Average (EMA) is a variation of the Simple Moving Average (SMA) that gives more weight to recent price data. This makes EMA more responsive to price movements compared to SMA. [ultimate_spacer height="20"] Significance & Purpose Identifying trends faster – Reacts quickly to price changes, making it useful for short-term traders. Providing smoother ... Read more

Simple Moving Average (SMA)

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The Simple Moving Average (SMA) is a popular technical indicator that helps traders identify price trends. It calculates the average closing price of a stock or asset over a set number of days, smoothing out short-term price movements to make trends clearer. Significance & Purpose Identifying trends – Shows if prices are moving up (bullish) ... Read more

Indicators vs. Oscillators

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Feature Indicators Oscillators Definition Mathematical tools to analyze trends, momentum, volatility, and volume. Tools that oscillate within a range to detect overbought/oversold conditions. Purpose Confirm trends, measure momentum, and gauge volatility. Identify overbought and oversold conditions, predict reversals. Best for Trend-following strategies in trending markets. Range-bound markets with sideways price movement. Market Condition Strong trending ... Read more

Average Directional Index (ADX)

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The Average Directional Index (ADX) is a trend strength indicator that measures how strong a price trend is, whether upward or downward. Unlike other indicators, ADX does not indicate trend direction, only the strength of the trend. It is typically plotted along with +DI (Positive Directional Indicator) and -DI (Negative Directional Indicator) to determine trend ... Read more