Get to Know About the Technical Indicators (II)

Assalamualaikum everyone.

Welcome to another blog. Hopefully, all of you will be doing well and enjoying the time with the grace and blessings of Almighty Allah. Today, I'm here to present another interesting topic, The Part 2 of Technical Indicators. So, let's start the fun without any wastage of time.

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Technical Indicators

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In the last post, we have already discussed some of the major types of the technical Indicators. So, in this post we are moving forward to discuss some other types of the technical Indicators along with their examples.

Support and Resistance Indicators

These indicators indicate the important levels of support and resistance. They help traders identify potential entry and exit points in the ongoing market. Examples of support and resistance indicators are discussed below,

• Pivot Points:

Pivot Points are levels of support and resistance applied on the chart using the previous day's high, low, and closing prices.

• Fibonacci Retracement:

Fibonacci Retracement is a technique for determining levels of support and resistance based on the Fibonacci sequence which is actually a mathematical calculation based indicator having different levels and lines.

• Trend Lines:

On a chart, trend lines connect a succession of higher lows or lower highs, indicating probable levels of support and resistance in the market on a particular timeframe.

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Oscillators

These indicators actually swing between high and low ranges, indicating overbought or oversold conditions in the market. Some of the examples of oscillators are,

• Stochastic Oscillator:

The Stochastic Oscillator compares the closing price to its price range over a given time period, indicating overbought or oversold conditions in the market.

• Relative Strength Index (RSI):

The RSI is also an oscillator, it is the most commonly used indicator in the technical analysis that detects overbought or oversold conditions of the market.

• Commodity Channel Index (CCI):

The CCI calculates the difference between a cryptocurrency's price and its average price over a given time period and express the data in the form of an oscillator.

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Mean Reversion Indicators

These technical indicators indicate when a price deviates from its mean and is likely to revert to it. Examples of mean reversion indicators are discussed below,

• Bollinger Bands:

Bollinger Bands are made up of a moving average and two standard deviations shown above and below it, which indicate periods of high or low volatility, as well as potential mean reversion.

• Donchian Channels:

A moving average with two bands displayed above and below it indicates periods of high or low volatility, as well as probable mean reversion in the market.

• Mean Absolute Deviation (MAD):

The MAD calculates the average size of price fluctuations over a given time period, indicating possible mean reversion in the market conditions.

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Statistical Indicators

The Statistical Indicators utilize statistical approaches to assess pricing data. Examples of statistical indicators are discussed below:

• Standard Deviation:

The standard deviation calculates the volatility of a cryptocurrency's price swings.

• Variance:

The variance represents the spread of a cryptocurrency's price changes.

• Correlation Coefficient:

This indicator analyzes the link between two cryptocurrencies or assets.

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So, it's all about this post. We have completed discussed the types of the technical Indicators in two parts. Hopefully, you will get something new from this. Stay tuned!!!

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