|star star star star star||5.0 (1 ratings)|
Instructor: Prof. Dr. Sangeeta Wats
Validity Period: Lifetime
#5paisaMasterClass Market indicators play a crucial role in understanding the movement of the market. . In Technical Analysis Part-6, 0ur speaker Dr. Sangeeta Wats, Associate Professor, NMIMS explains the importance and usage of market indicators.
. What is Technical Indicator? In technical analysis in finance, a technical indicator is a mathematical calculation based on historic price, volume, or open interest information that aims to forecast financial market direction. Technical Indicators are usually of two types: leading and lagging indicator.
Over the years, traders have identified 4 indicator types: volume, momentum, trend, and volatility indicators.
1. Leading indicators are those who lead the price movement. They give a signal before a new trend or reversal occurs.
2. Lagging indicators are those who follow the price action. They give a signal after the trend or reversal has started. Trend Indicators Usually, Trend following traders uses any of the Trend indicators to support their trading views. Moving Averages (MA), MACD, Average Directional Index (ADX), Parabolic SAR (PSAR), Linear Regression are some of the examples of Trend Indicators. Usually, these indicators are designed to show the direction and strength of any script. The direction of the trend can be upwards, downwards, or sideways. These indicators belong to the Lagging Indicator concept. Momentum Indicators These indicators are used to measure the speed of a script in a given period. Short term traders focus on stocks that are moving significantly in one direction with high volume to make quick money. For this reason, they use momentum indicators like RSI, Stochastics, CCI, and Williams %R, etc.
Below are the two widely used important characteristics of the Momentum Indicators: 1. Overbought and Oversold conditions 2. Bullish and Bearish Divergences Usually, Overbought and Oversold conditions are used to predict the end of the trend and to take the trades in the opposite direction of the existing trend.
For example, if a momentum indicator is showing overbought condition for a script, then traders will look to sell the script. Similarly, divergences are used to pick the end of the trend by identifying its weakness and to take the trades in the opposite direction of the trend. .Volatility Indicators The volatility is the relative rate at which the price of security moves (up and down). A high volatility condition is good for short-term traders and because of this importance in trading, many volatility indicators such as Bollinger Band (BB), Average True Range (ATR), Donchin channel, and Volatility Chaikin, etc are developed. Volume Indicators The volume plays a crucial role in trading. A trend with high volume indicates the probability of the price moving in the direction of the trend is high. Hence this can be used to get the confirmation of a trend or reversal of a trend. Few examples are the Money Flow index, Chaikin money flow, Force Index, and On balance volume, etc. To learn Technical Analysis from basic, watch - Masterclass by 5paisa School playlist https://www.youtube.com/playlist?list... To learn market, join 5paisa School: https://school.5paisa.com To Download 5paisa School App, click here: https://bit.ly/2H2Ch1b To open a Demat Account with 5paisa: https://bit.ly/3lM2BwC, Or Simply download 5paisa Trading App: http://m.onelink.me/e6cc12fc For more information, visit our website: https://www.5paisa.com Stay socially connected with us, Join us on Facebook: https://www.facebook.com/5paisa Twitter: https://twitter.com/5paisa LinkedIn: https://www.linkedin.com/company/5paisa Instagram: https://www.instagram.com/5paisa/ Telegram: https://t.me/fivepaisaofficial
|Technical Analysis Part- 6, Market Indicators| Price | Movement| Nifty | Sensex | English (53:00)|
After successful purchase, this item would be added to your courses.
You can access your courses in the following ways :