There are many indicators that traders and investors use to analyze stock market trends and make investment decisions. Here are 20 common indicators that are often used in the stock market:
- Moving Average: A moving average is a calculation of the average price of a stock over a certain number of periods.
- Relative Strength Index (RSI): The RSI is a momentum indicator that measures the magnitude of recent price changes to assess overbought or oversold conditions.
- Bollinger Bands: Bollinger Bands are a technical analysis tool that uses moving averages and standard deviations to plot upper and lower bands around a security’s price.
- On-Balance Volume (OBV): The OBV is a momentum indicator that uses volume changes to assess the strength of a trend.
- MACD: The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that compares the difference between two moving averages.
- Stochastic Oscillator: The Stochastic Oscillator is a momentum indicator that compares the closing price of a security to its price range over a specific period of time.
- Fibonacci Retracement: Fibonacci Retracement is a technical analysis tool that uses horizontal lines to indicate areas of support or resistance at the key Fibonacci levels.
- Ichimoku Cloud: The Ichimoku Cloud is a technical analysis tool that uses multiple moving averages to identify support and resistance levels and trend direction.
- Pivot Points: Pivot points are technical analysis tools that use the high, low, and close prices of a security to calculate potential support and resistance levels.
- Moving Average Convergence Divergence (MACD) Histogram: The MACD Histogram is a chart-based indicator that shows the relationship between the MACD and its signal line.
- Average Directional Index (ADX): The ADX is a trend-strength indicator that uses both positive and negative price movements to gauge the strength of a trend.
- On-Balance Volume (OBV) Weighted Close: The OBV Weighted Close is a momentum indicator that uses volume and price data to assess the strength of a trend.
- Parabolic SAR: The Parabolic SAR is a technical analysis tool that uses a series of dots to indicate potential reversals in the price of a security.
- Commodity Channel Index (CCI): The CCI is a momentum indicator that measures the deviation of a security’s price from its statistical mean.
- Chaikin Oscillator: The Chaikin Oscillator is a momentum indicator that uses the difference between two exponential moving averages to assess the strength of a trend.
- Williams %R: Williams %R is a momentum indicator that measures overbought and oversold conditions based on the close relative to the highest high over a specific time period.
- Trix: The Trix is a momentum indicator that uses the triple exponential moving average to smooth price data and identify trend changes.
- Average True Range (ATR): The ATR is a volatility indicator that measures the range of an asset’s price movements over a specific time period.
- Donchian Channel: The Donchian Channel is a trend-following indicator that uses the highest high and lowest low over a specific time period to plot upper and lower bands.
- Accumulation/Distribution: The accumulation/distribution indicator uses both price and volume data to assess the strength of a trend and predict potential reversals.
It’s important to note that no single
