The Most Accurate Technical Indicators Every Trader Should Know

What are Technical Indicators?

Most Accurate Technical Indicators - To become a successful investor, you must be able to develop two skills, namely fundamental and technical analysis. Although they are different, both are very important to learn if you want to really understand the world of stocks.

Fundamental stock indicators generally dig into the company's finances. This analysis also studies everything that can affect the value of the company. This includes micro and macro economic factors, company strategy, and employee relations.

Trading strategies change over time and events simultaneously where they play a big role. To maximize returns, it is very important for you to understand the market. Technical analysis indicators are useful strategies used to maximize returns. In this discussion, Jurnal GIC will share what indicators are accurate to use for trading. Here is the information below.

The Most Accurate Technical Indicators According to the Masters

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Traders who use technical analysis in their trading routine are chartists who rely on indicators, oscillators or patterns to generate signals. There are many of the most accurate technical indicators used by traders in order to get maximum results.

Below are the most accurate technical indicators for trading:

• Moving Averages (MA)

Intraday traders are certainly familiar with this indicator. This indicator is generally the most frequently used. MA is a line on a graph that functions to connect the average closing level in a certain period which is also known as the best stock indicator. The longer the period, the easier the moving average will be to rely on.

One of the most accurate technical indicators will help you understand price movements, because prices do not move in one direction only. Stock prices are surging and the MA indicator moves to smooth out volatility and provide traders with an understanding of the underlying trend of price movements.

• Stochastic Oscillator (SO)

SO is an indicator that compares a specific closing price on an asset to its price range over time. It uses a scale of 0 to 100, and a reading below 20 is generally considered oversold, while a reading above 80 is considered overbought. However, if there is a stronger trend, a rally is not necessarily imminent.

• Bollinger Bands (BB)

The next most accurate technical indicator is the Bollinger Bands. This indicator provides a range of asset prices that traders usually trade. The width of the bands decreases and increases to reflect current market volatility.

The closer the band or the narrower the size, the lower the volatility of the financial instrument. Conversely, if the band size is wider, the higher the financial volatility.

• Relative Strength Index (RSI)

The RSI indicator is used to help traders identify market conditions, momentum and warning signals for anticipated price movements. The range of this indicator is from 0 to 100. An asset is considered overbought if it is at level 70, while it is said to be oversold if it approaches 30.

An overbought signal indicates that short-term profits are about to reach maturity and the asset is likely to experience a price correction. Conversely, if the signal is oversold then it indicates a short-term decline where the asset will experience an increase.

• Fibonacci Retracement (FR)

FR is an indicator that helps traders determine how far the market is moving against the current trend. A retracement occurs when the stock market experiences a temporary decline (pullback). FR helps traders identify possible support and resistance levels that indicate a downtrend or uptrend. This indicator can also help traders decide on stops and limits until when they should open and close positions.

• Ichimoku Cloud

Like most other indicators, the Ichimoku cloud itself is used to identify support and resistance levels. However, this indicator can also estimate price momentum and provide traders with signals to help them make decisions.

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