#TradingTools101 Key Technical Indicators

RSI (Relative Strength Index)

Function: Measures the speed and change of price movements.

Signal: Helps identify oversold conditions (buy potential) or overbought conditions (sell potential).

MACD (Moving Average Convergence Divergence)

Function: Reveals changes in strength, direction, momentum, and duration of trends.

Signal: Identifies potential trend reversals and confirms existing trends.

Moving Average (MA/EMA)

Function: Smooths price data to facilitate trend identification.