Want to gain a real edge in the market? Technical analysis provides traders and investors with a fantastic toolkit for evaluating securities. It’s all about looking at what’s happened – specifically, historical price and volume data – to try and predict where things might go next.

1. Technical Indicators for
Beginners
Want to gain a real edge in the market? Technical analysis provides traders
and investors with a fantastic toolkit for evaluating securities. It9s all about
looking at what9s happened 3 specifically, historical price and volume data 3
to try and predict where things might go next.
by Flows Trading

2. What are Technical
Indicators?
Mathematical Calculation
Derived from price and volume data to analyze trends.
Forecasting Tools
Used to predict price movements, though not guaranteed.
Pattern Recognition
Apply formulas to historical data to spot trends.
Supplemental Role
Enhance, not replace, fundamental analysis insights.

3. 1. Moving Averages (MA)
Smooth Trends
Helps identify market
direction by smoothing price
data.
Types
SMA averages price equally,
EMA prioritizes recent data.
Example
50-day and 200-day moving averages reveal long-term trends.

4. 2. Relative Strength Index (RSI)
Market Momentum
Measures speed and change of price
movements to gauge momentum.
Overbought/Oversold Levels
RSI above 70 signals overbought; below
30 signals oversold.
Divergence
Price-RSI divergence can hint at trend
reversals.

5. 3. Moving Average
Convergence Divergence
(MACD)
1
Two MAs Compared
Shows relationship between short and long-term moving
averages.
2
Key Components
MACD line, signal line, and histogram display price momentum.
3
Buy/Sell Signals
Crossovers suggest potential trading entry and exit points.
4
Example
Bullish when MACD line crosses above signal line.

6. 4. Fibonacci Retracement
Support &
Resistance
Helps find potential price
reversal levels on charts.
Key Levels
Uses Fibonacci ratios: 23.6%,
38.2%, 50%, 61.8%, etc.
Usage
Draw lines between highs
and lows to identify targets.
Combine Indicators
Works best alongside other
signals to reduce
subjectivity.

7. 5. Volume
Trading Activity
Measures shares traded to
confirm price action
direction.
Volume Spikes
Can indicate upcoming
breakouts or reversals in
trend.
On Balance Volume (OBV)
Accumulates volume adding on up days, subtracting on down days.

8. Mastering Technical Indicators
Start Small
Use a few key indicators for clarity and focus.
Practice Trading
Test strategies using simulated paper trading platforms.
Combine Signals
Confirm trades by using multiple indicators together.
Keep Learning
Adapt and refine your analysis with continuous education.