Moving Averages Indicator 10 Reasons moving averages work as trading tools. Moving averages have a place in any trader’s or investor’s strategy. They are my favorite filter for price action. Moving Averages are Great Trading Tools I like moving average signals for their power and simplicity in my trading and here is why: Here are … Read more
RSI divergence signals show traders when price action and the RSI are no longer showing the same momentum. The RSI shows the magnitude of a price move in a specific timeframe. The RSI is one of the most popular oscillators used in technical analysis. A divergence shows the relation between the RSI and current price action is becoming uncorrelated.
Technical analysis is a process used to quantify the price action on the chart of a security and identify trading and investing opportunities based on the patterns created by buyers and sellers. Technical analysts believe past and present trading activity in price changes can be used to create an edge for what will happen next based on what is happening now. Technical analysts try to establish a higher probability of one thing happening over another or to create a good risk/reward ratio through trade entry and management as it plays out.