#TradingTools101
Let's dive into some basic trading tools:
Technical Indicators
- *Relative Strength Index (RSI)*: Measures price momentum, ranging from 0 to 100. Helps identify overbought/oversold conditions.
- *Moving Averages (MA)*: Smoothens price fluctuations, identifies trends and potential crossovers.
- *Moving Average Convergence Divergence (MACD)*: Identifies trend reversals and momentum shifts.
Chart Patterns
- *Trend Lines*: Help identify support and resistance levels.
- *Candlestick Patterns*: Provide insights into market sentiment, such as bullish/bearish engulfing patterns.