Contest! || Technical indicators
How are you all steemians. I hope that you all are good and I'm good too Alhamdulillah by the grace of Allah Almighty. Here I'm with another interesting contest entry in the contest organized by @khursheedanwar.
Technical indicators
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The technical indicators play important role in the market analysis by giving precious perception into the markets of finance, they help the traders and also investors.The technical indicators are the mathematical calculations which are based on the factual prices.The technical indicators are helping the traders in that way they help the traders to indentify the market trends. These indicators help the traders to determine the optimal entries and withdrawal for their trading. RSI relative strength index, stochastic oscillator can assist in the identification of oversold situations in the market. With the help of these indicators with other techniques of analysis the traders can time their trades more efficiently and can improve their success.
Moving Average: These are used to ease out the data of prices to recognise the trends over a particular span.Their calculations are done by measuring the final rate of a surety over a time period. The different types of moving Average are sma and ema. The traders in the market use the moving Average to identify the trend direction.
RSI: it is a strength oscillator which is used to calculate the speed. It is also used to calculate the change in the prices movements. It's range is between 0 to 100. It has reading 70 and above this value it is called as overbought and below this value it is oversold. Traders use this to verify the strength of their trends.
Bollinger bands: This is a popular tool which is used in the trading in the market. It includes a 20 periods of moving Average and two deviations below and above the moving Average. These bands depend on the volatility of the market. The traders in the market use Bollinger bands to confirm the conditions of overbought and oversold. When the costs reaches upper bands it is considered as conditions of overbought and on the other hand, the other conditions are called as oversold if the costs crosses the lower bands.
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