Technical indicators Tutorial

Price is the primary tool of technical analysis because it reflects every factor affecting the value of a market. However, price doesn’t produce just trend lines and basic chart patterns. Analysts have expanded their research far beyond those basic elements to develop a number of technical indicators that provide more insight into price action than what you see on the surface. You may be able to see that a market is “extended” (overbought or oversold) just by looking at a bar chart, but an indicator can put a number to it and confirm your thinking.