Technical Indicators: A Trader's Guide

Learn the technical indicators that actually matter. Each one shows what the indicator means, how it is calculated, how it is used, the common mistakes, and how to journal your indicator-based trades so you find out which ones help you.

Trend

Moving Averages indicatorFast EMASlow SMA
Moving Averages
A moving average is a trend indicator that smooths price into a single line by averaging it over a set number of periods, making the underlying direction easier to read.
Trend
VWAP indicatorVWAP
VWAP
VWAP, the volume weighted average price, is an intraday reference line that shows the average price traded over the session weighted by volume, so heavier-volume prices count more.
Trend

Momentum

RSI indicator7030RSI
RSI
RSI, the relative strength index, is a momentum oscillator that moves between 0 and 100 to measure the speed and size of recent price changes, flagging overbought and oversold conditions.
Momentum
MACD indicator0MACDSignal
MACD
MACD, moving average convergence divergence, is a momentum indicator that measures the relationship between two moving averages of price using a MACD line, a signal line, and a histogram.
Momentum
Stochastic Oscillator indicator8020%K%D
Stochastic Oscillator
The stochastic oscillator is a momentum indicator that moves between 0 and 100 by measuring where the close sits within the recent high-to-low range, flagging overbought and oversold momentum.
Momentum

Volatility

Bollinger Bands indicatorMiddle band
Bollinger Bands
Bollinger Bands are a volatility indicator made of a middle moving average with an upper and lower band set a number of standard deviations away, so the bands widen and narrow as volatility changes.
Volatility
ATR indicatorATR
ATR
ATR, the average true range, is a volatility indicator that shows the average size of a period's price range, telling you how much an instrument typically moves rather than which direction.
Volatility

Volume

Volume indicator
Volume
Volume is the number of shares or contracts traded in a period, shown as bars beneath price. It measures participation and confirms the conviction behind a move.
Volume

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