#TradingTools101 introduces key indicators used by traders to analyze market trends and make informed decisions. The Relative Strength Index (RSI) measures momentum by comparing recent gains and losses to identify overbought or oversold conditions—values above 70 suggest overbought, while below 30 indicate oversold. The Moving Average Convergence Divergence (MACD) tracks the relationship between two moving averages, helping spot trend changes and momentum shifts. Moving Averages themselves smooth price data to highlight trends over specific timeframes; the 50-day and 200-day averages are commonly watched. Combined, these tools offer valuable insights into market timing, trend strength, and potential reversals.
