Monday, February 23, 2015

HOW DIFFERENT APPROACH PROVIDES INFORMATION ON STOCK , INDEX , ETC.

The types of information you want to follow during the market day, week or month.  In truth, nearly all technical indicators fit into five categories of research. Each category can be further sub divided into leading or lagging.  Leading indicators predict where price is headed while lagging indicators report background conditions when price is already in motion:




  • Trend indicators (lagging) analyze whether a market is moving up, down or sideways over time. 
  • Mean reversion indicators (lagging) measure how far a price swing will stretch before a counter impulse triggers a retracement. 
  • Relative strength indicators (leading) measure oscillations in buying and selling pressure.
  • Momentum indicators (leading) evaluate the speed of price change over time.  
  • Volume indicators (leading or lagging) tally up trades and quantify whether bulls or bear are in control.

No comments: