Exponential Moving Average (EMA)
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.
Simple Moving Average (SMA)
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…
Indicators vs. Oscillators
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…
Average Directional Index (ADX)
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…