Technical Analysis
Trading Indicators — Complete Guide
Deep-dive guides to 15 essential technical indicators used by forex, CFD, and futures traders worldwide. Each page covers the formula, interpretation, strengths, weaknesses, best timeframes, and a complete example strategy you can test yourself.
Momentum Indicators
Measure the speed and strength of price movements
RSI
Relative Strength Index
The Relative Strength Index (RSI) is a bounded momentum oscillator that measures the speed and magnitude of recent price changes on a 0-100 scale.
MACD
Moving Average Convergence Divergence
The Moving Average Convergence Divergence indicator (MACD) was developed by analyst Gerald Appel in the late 1970s and became one of the most widely followed momentum indicators of the modern era.
Stochastic Oscillator
Stochastic Oscillator
The Stochastic Oscillator was developed in the late 1950s by futures trader and educator George C.
CCI
Commodity Channel Index
The Commodity Channel Index (CCI) was developed by Donald Lambert and first published in a 1980 issue of Commodities Magazine (now Futures Magazine).
Trend Indicators
Identify the direction and persistence of market moves
Ichimoku Cloud
Ichimoku Kinko Hyo
Ichimoku Kinko Hyo — often translated as "one glance equilibrium chart" — is a comprehensive Japanese trend system developed by Tokyo newspaper writer Goichi Hosoda in the late 1930s.
ADX
Average Directional Index
The Average Directional Index (ADX) is a trend-strength indicator also developed by J.
SMA
Simple Moving Average
The Simple Moving Average (SMA) is the oldest and most widely used technical indicator in global markets.
EMA
Exponential Moving Average
The Exponential Moving Average (EMA) is a weighted moving average that assigns exponentially decreasing importance to older prices.
Parabolic SAR
Parabolic Stop and Reverse
The Parabolic Stop and Reverse (SAR) is a trend-following indicator developed by J.
Volatility Indicators
Quantify how much and how fast prices are moving
Bollinger Bands
Bollinger Bands
Bollinger Bands were developed in the early 1980s by John Bollinger, CFA, CMT, and have become one of the most popular volatility-based indicators in global markets.
ATR
Average True Range
The Average True Range (ATR), another Wilder creation from his 1978 book, is the industry standard for measuring market volatility.
Volume Indicators
Measure trading activity and conviction behind moves
OBV
On-Balance Volume
On-Balance Volume (OBV) was developed by financial author Joseph E.
VWAP
Volume Weighted Average Price
The Volume Weighted Average Price (VWAP) is an intraday benchmark that calculates the average price of an instrument, weighted by volume, over a session.
Support / Resistance Indicators
Identify key price zones where reactions occur
Fibonacci Retracement
Fibonacci Retracement Levels
Fibonacci retracement levels are horizontal lines drawn at specific percentages of a prior price move to identify likely support and resistance zones on a pullback.
Pivot Points
Classical Pivot Points
Pivot Points are horizontal support and resistance levels calculated from the prior session's high, low, and close.
Keep Learning Technical Analysis
Indicators work best when combined with sound price action, trend analysis, and risk management.