Day Trading Encyclopedia
Technical Indicators
Moving Averages
Moving averages can be used to smooth price action, identify longer term trends, pinpoint areas of support/resistance, and more.
RSI - Relative Strength Index
The relative strength index (RSI) can be used to gauge momentum in the markets, allowing traders to identify whether a stock is overbought or oversold.
MACD - Moving Average Convergence Divergence
The MACD indicator is derived from moving averages and other calculations. This indicator can be used to better understand momentum, determine the strength of a move, and pinpoint reversals.
VWAP - Volume Weighted Average
The VWAP indicator is similar to a moving average, however it takes volume into account, helping traders identify price points of interest.