⚡ANALYTICAL METHOD OF TECHNICAL ANALYSIS⚡
Hi, friends.💋💋 I'm glad to welcome you on my page.👋🏻 Have a great weekend😉.
Saturday and Sunday is a great time for development, 💪🏻💪🏻💪🏻the market is mostly not very active, I suggest you continue to consider 📊 technical analysis methods.📊
💥We already know what are the main methods of technical analysis.
💥Advantages and disadvantages of technical analysis
💥We started studying graphical analysis methods.
😉Today it's time to talk about analytical methods.😉
Analytical methods include methods that use filtering or mathematical approximation of time series.
👉🏻The main tool of analytical methods is an indicator, which is a set of functions from one or more basic time series, with a specific time "window".
📌Trend indicators
These indicators include indicators used to measure the trend, its strength and duration. A classic example of trend-confirming indicators is the moving average. This class includes such well-known indicators as MACD, Directional Movement, Parabolic and others.
📌Volatility indicators
Indicators of the second category are used to measure of price volatility of the underlying asset. Variability is a concept that describes the magnitude of daily price fluctuations independent of the main direction. These indicators include: Chaikin's Volatility, Standard Deviation, Bollinger Bands.
📌Moment indicators
Representatives of this category are used to measure the rate of price change over a certain period of time. These are, first of all, Momentum Indicator, Relative Strength Index (RSI) and Price Rate-Of-Change (ROC).
📌Cycle indicators
These indicators are used to identify cyclic components and their length. These are Fibonacci Time Zones, MESA Sine Wave Indicator, and others. Such indicators work well only on sideways trends. These indicators are very important for futures traders working in commodity markets for sugar or oil grains - in markets with a very high cyclical component.
📌Market strength indicators
It uses either the volume of transactions or the number of open positions as one of the basic independent variables. Indicators of this category, based on a series of volume data, give signals about the strength of the current trend. Indicators in this category include On Balance Volume, Volume Accumulation, and others.
👉🏻⚡Don't use indicators, especially those that are built solely on the basis of price. It is especially scary to look at screenshots of the working terminals of some traders, which are literally littered with various indicators. Price in itself is a great indicator. All price indicators are late and show virtually the same thing.
If you do not see what the price shows, then the indicators will not help you. Indicators help only those who understand the essence of price movements, and that, only as a hint, and not the main tool for making trading decisions.
😸I hope you were interested and informative.
Stay with me, I still have a lot of interesting things for you💁🏻♀️
Subscribe and put me like, I try hard for you 💋💋💋
Your Rocket Bomb🚀💣
Saturday and Sunday is a great time for development, 💪🏻💪🏻💪🏻the market is mostly not very active, I suggest you continue to consider 📊 technical analysis methods.📊
💥We already know what are the main methods of technical analysis.
💥Advantages and disadvantages of technical analysis
💥We started studying graphical analysis methods.
😉Today it's time to talk about analytical methods.😉
Analytical methods include methods that use filtering or mathematical approximation of time series.
👉🏻The main tool of analytical methods is an indicator, which is a set of functions from one or more basic time series, with a specific time "window".
📌Trend indicators
These indicators include indicators used to measure the trend, its strength and duration. A classic example of trend-confirming indicators is the moving average. This class includes such well-known indicators as MACD, Directional Movement, Parabolic and others.
📌Volatility indicators
Indicators of the second category are used to measure of price volatility of the underlying asset. Variability is a concept that describes the magnitude of daily price fluctuations independent of the main direction. These indicators include: Chaikin's Volatility, Standard Deviation, Bollinger Bands.
📌Moment indicators
Representatives of this category are used to measure the rate of price change over a certain period of time. These are, first of all, Momentum Indicator, Relative Strength Index (RSI) and Price Rate-Of-Change (ROC).
📌Cycle indicators
These indicators are used to identify cyclic components and their length. These are Fibonacci Time Zones, MESA Sine Wave Indicator, and others. Such indicators work well only on sideways trends. These indicators are very important for futures traders working in commodity markets for sugar or oil grains - in markets with a very high cyclical component.
📌Market strength indicators
It uses either the volume of transactions or the number of open positions as one of the basic independent variables. Indicators of this category, based on a series of volume data, give signals about the strength of the current trend. Indicators in this category include On Balance Volume, Volume Accumulation, and others.
👉🏻⚡Don't use indicators, especially those that are built solely on the basis of price. It is especially scary to look at screenshots of the working terminals of some traders, which are literally littered with various indicators. Price in itself is a great indicator. All price indicators are late and show virtually the same thing.
If you do not see what the price shows, then the indicators will not help you. Indicators help only those who understand the essence of price movements, and that, only as a hint, and not the main tool for making trading decisions.
😸I hope you were interested and informative.
Stay with me, I still have a lot of interesting things for you💁🏻♀️
Subscribe and put me like, I try hard for you 💋💋💋
Your Rocket Bomb🚀💣
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