Technical indicators help determine stock overbought/oversold status and trend direction. Indicators assist in setting optimal stop loss and target prices
Moving average creates constant updated average price over specified period. Uptrend indicated by upward-angled moving average line. Crossovers between moving averages can signal buy/sell opportunities. Moving averages can act as support or resistance levels
Highs and lows are crucial for trend prediction in technical analysis. A high is a price peak before correction, while a low is a trough before pullback. These patterns help identify market sentiment and trend direction
RSI measures security's price changes and detects overbought/oversold conditions. Developed by J. Welles Wilder Jr. in 1978. Displays on 0-100 scale as oscillator
RSI measures price movement speed and magnitude using closing prices. Created by J.Welles Wilder Jr. in 1978. Operates between 0 and 100, with 14-day period being most common
Divergence indicates price and indicator movements that differ. Positive divergence shows price downtrend with rising indicator. Negative divergence indicates price uptrend with falling indicator. Regular divergence signals potential trend reversals. Hidden divergence indicates trend continuation