Tech Indicators - created from Mind Map

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Terminology

RSI

MACD

Bollinger Bands

Momentum

Rate at which price changes

Relative Strength Index

Lagging indicator of Momentum

RSI = 100 - 1/(1+RS)

Over sold < 30

Over brough > 70

Indicate trend reversal

If remains long period buy

Otherwise Sale

RS = Avg. Gain/Avg. Loss

Range : 0 to 100

Data point = 14

RS is Relative Strength

Lagging indicator

Moving Average Convergence & Divergence

MACD line is 12d EMA – 26d EMA

MACD line above Signal Line means Bullish

Otherwise sentiment is Bearish

Signal Line is 9d EMA

EMA is Expontial Moving Average

20d SMA line bounded by +/- 2 SD lines

Works in side wise market, fails in trending market

SMA (Simple Moving Average)

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