5 most common Technical Indicators for a beginner Trader

1. Moving Average (MA)

Helps determine trends and support/resistance levels by calculating the average closing price over a specified period.

2. Relative Strength Index (RSI)

Measures the strength of an investment or trader's position on a scale of 0 to 100, indicating overbought (high values) or oversold (low values) conditions.

3. Moving Average Convergence/Divergence (MACD)

Measures market momentum by comparing moving averages of up and down days, providing buy/sell signals when lines cross.

4. Bollinger Bands

Represents upper and lower price limits relative to recent trading ranges, helping traders gauge price action and identify strong buying or selling pressure.

5. Stochastic Oscillator

Measures the relationship between a security's closing price and its trading range, indicating overbought or oversold conditions and assisting in momentum analysis.