Technical Indicators

Technical indicators are mathematical calculations based on a stock's historical price and volume. They help traders identify trends and predict future price movements (without relying on AI or guessing).

1. RSI (Relative Strength Index)

A number between 0 and 100. If RSI is below 30, the stock is "oversold" (too cheap, might bounce up). If RSI is above 70, the stock is "overbought" (too expensive, might drop).

2. MACD (Moving Average Convergence Divergence)

Shows the relationship between two moving averages. When the MACD line crosses above the signal line, it's a bullish (buy) signal. When it crosses below, it's a bearish (sell) signal.

3. EMA (Exponential Moving Average)

A line that averages the stock's price over a certain number of days (e.g., 50 days or 200 days). If the current price is above the 50-EMA, the stock is in an uptrend. If it's below, it's in a downtrend.

4. Bollinger Bands

Three lines drawn over the price chart. When the price hits the bottom line, it often bounces up. When it hits the top line, it often gets pushed down.