Technical indicators are tools that use historical data and mathematical calculations to provide information about the direction and strength of a security’s price trend, as well as potential turning points in the trend. There are many different technical indicators, and the most popular ones will vary depending on the preferences and strategies of individual traders. Some of the most widely used technical indicators include moving averages, relative strength index (RSI), stochastic oscillator, Bollinger bands, and moving average convergence divergence (MACD). These indicators can be used alone or in combination with each other to provide information about a security’s price trend and potential trading opportunities.
“In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.” – Ray Dalio