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    Lesson 2: Indicators Overview: SMA EMA

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    Elenita Portez
    This document provides an overview of common technical indicators used by traders to identify price movements, including the simple moving average (SMA), exponential moving average (EMA), volume weighted average price (VWAP), relative strength index (RSI), moving average convergence divergence (MACD), relative momentum index (RMI), money flow index (MFI), standard deviation, Bollinger bands, and pivot points. Each indicator is calculated differently but aims to help traders recognize trends, momentum, and volatility in market prices over specific time periods.

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    Lesson 2: Indicators Overview: SMA EMA

    Uploaded by

    Elenita Portez
    21 views2 pages
    This document provides an overview of common technical indicators used by traders to identify price movements, including the simple moving average (SMA), exponential moving average (EMA), volume weighted average price (VWAP), relative strength index (RSI), moving average convergence divergence (MACD), relative momentum index (RMI), money flow index (MFI), standard deviation, Bollinger bands, and pivot points. Each indicator is calculated differently but aims to help traders recognize trends, momentum, and volatility in market prices over specific time periods.

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    Lesson_2_Indicators_Overview (2)

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    This document provides an overview of common technical indicators used by traders to identify price movements, including the simple moving average (SMA), exponential moving average (EMA), volume weighted average price (VWAP), relative strength index (RSI), moving average convergence divergence (MACD), relative momentum index (RMI), money flow index (MFI), standard deviation, Bollinger bands, and pivot points. Each indicator is calculated differently but aims to help traders recognize trends, momentum, and volatility in market prices over specific time periods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    21 views2 pages

    Lesson 2: Indicators Overview: SMA EMA

    Uploaded by

    Elenita Portez
    This document provides an overview of common technical indicators used by traders to identify price movements, including the simple moving average (SMA), exponential moving average (EMA), volume weighted average price (VWAP), relative strength index (RSI), moving average convergence divergence (MACD), relative momentum index (RMI), money flow index (MFI), standard deviation, Bollinger bands, and pivot points. Each indicator is calculated differently but aims to help traders recognize trends, momentum, and volatility in market prices over specific time periods.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Lesson 2: Indicators Overview

    Indicators represent a group of technical analysis used by traders and investors to identify and predict a
    price move in a X time.

     SMA: Simple Moving Average is the average move of a ticker in a X time.

     EMA: Exponential Moving Average is the average move of a ticker in a X time calculated with a
    coefficient that provide more weight to the last period of X time.

     VWAP: Volume Weighted Average Price is the daily ratio of the price traded to total volume
    traded.

     RSI: Relative Strength Index indicate the rate of price in a certain period of time. Traders use the
    RSI to identify an overbought or an oversold symbol.

     MACD: Moving Average Convergence/Divergence is a technical indicator used to identify a trend


    reversal. MACD graph is represented with two lines. The fast line(calculated by subtracting the
    EMA12 with EMA26) and the signal line(EMA9). The fast line crossover above the signal line,
    indicate an uptrend reversal. The fast line crossover below the signal line indicate a downtrend
    reversal.

     RMI: Relative Momentum Index is similar to the Relative Strength Index(RSI), that reduce the
    speed of oscillations, limiting the amount of false signals.

     MFI: Money Flow Index is an indicator that consider the price and volume to measure the buy
    and sell momentum. Similar to the RSI, the MFI use an overbought and an oversold indication.

     Standard Deviation: Standard Deviation indicate the volatility range of a symbol. Simply, if we
    trade a $10 dollar Symbol and this Symbol is moving between $12 and $8, the Standard
    Deviation is $2.

     Bollinger Bands: Bollinger Bands are used to measure the Symbol Volatility. Is mostly combined
    with three lines. The lower line and the upper line(bands) and the middle line. The middle line is
    usually the SMA20. The upper band is calculated using the SMA20 + 2 standard deviations. The
    lower band is calculated using the SMA20 – 2 standard deviations. For many people the
    indication of a buy is when the price bounce on the bottom band with a trend reversal and a sell
    is when the price hit the upper band.

     Pivots Point: Previous day average high, low and closing price. To calculate the pivots we must
    use: Closing Price, High Price, Low Price and Average Price. Average price is calculated with
    AP=(Closing Price + High Price + Low Price)/3

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