๐ Technical Indicators Explained โ With Live Demo Charts
22 of the most-used trading indicators in plain English: the formula, how to read it, typical signals, default settings, pitfalls and an interactive chart you can re-roll. Plus our experimental MarketMint Lab ideas.
Simple Moving Average (SMA)
The Simple Moving Average adds up the last N closing prices and divides by N to create a smooth line. It filters out daily noise so the underlying direction of the trend is easier to see.
Exponential Moving Average (EMA)
The Exponential Moving Average is a moving average that gives more weight to recent prices. It responds faster than the SMA, which helps traders spot trend changes sooner.
Relative Strength Index (RSI)
The Relative Strength Index measures the speed and size of recent gains versus losses on a scale from 0 to 100. It helps spot when a market may be stretched too far in one direction.
Moving Average Convergence Divergence (MACD)
MACD tracks the gap between a fast and slow EMA to reveal changes in trend momentum. A signal line and histogram make it easier to see when momentum is building or fading.
Bollinger Bands (BB)
Bollinger Bands place bands a set number of standard deviations above and below a moving average. The bands widen when volatility rises and narrow when markets get quiet.
Stochastic Oscillator (STOCH)
The Stochastic Oscillator compares the current close with the high-low range over a recent period. It shows where price sits within that range on a 0 to 100 scale.
Average True Range (ATR)
Average True Range measures how much an asset typically moves in a period, including gaps. It does not show direction, but it is extremely useful for sizing positions and placing stops.
On-Balance Volume (OBV)
On-Balance Volume keeps a running total that adds volume on up days and subtracts it on down days. It helps show whether volume is flowing into or out of an asset.
Donchian Channels (DC)
Donchian Channels plot the highest high and lowest low over a lookback period, with a middle line between them. They are a classic tool for spotting breakouts to new highs or lows.
Keltner Channels (KC)
Keltner Channels draw bands around an EMA using a multiple of ATR. They create a smoother volatility envelope than Bollinger Bands and help identify trends and stretched moves.
Volume Weighted Average Price (VWAP)
VWAP is the average price of the session weighted by how much volume traded at each price. Intraday traders use it as a fair-value reference and a key support or resistance line.
Fibonacci Retracement (FIB)
Fibonacci retracement draws horizontal levels between a swing high and swing low at key ratios. Traders watch these levels as possible areas where a pullback might pause or reverse.
Supertrend (ST)
Supertrend is a trend-following line plotted above or below price using ATR-based bands. It flips sides when price closes through it, making trend direction easy to see at a glance.
Average Directional Index (ADX)
The Average Directional Index measures how strong a trend is, regardless of its direction. Paired with the +DI and -DI lines, it also helps identify which side is in control.
Commodity Channel Index (CCI)
The Commodity Channel Index measures how far price has moved from its statistical average. Despite the name, it is used on stocks, forex and crypto to spot strong moves and potential reversals.
Williams %R (%R)
Williams %R shows where the close sits relative to the high-low range of recent periods, on a scale from 0 to -100. It is a fast momentum oscillator used to spot overbought and oversold conditions.
Money Flow Index (MFI)
The Money Flow Index is like an RSI that also includes volume. It measures buying and selling pressure on a 0 to 100 scale, helping spot stretched conditions backed by volume.
Parabolic SAR (PSAR)
Parabolic SAR places dots above or below price that trail the trend and speed up as it continues. When price crosses the dots, they flip sides, signaling a possible trend reversal.
Ichimoku Cloud (ICHI)
The Ichimoku Cloud is an all-in-one system showing trend, momentum and support and resistance through five lines and a shaded cloud. It looks busy at first but gives a rich picture at a glance once learned.
Rate of Change (ROC)
Rate of Change measures the percentage change in price over a set number of periods. It is a simple, direct way to see how fast price is moving and in which direction.
Pivot Points (PP)
Pivot points calculate key support and resistance levels from the previous period's high, low and close. Many short-term traders watch them as reference levels for the current session.
Volume (VOL)
Volume shows how many shares, contracts or coins traded during each period. It reveals the level of participation behind a price move and helps judge whether a move has conviction.