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Old 07-03-2008, 10:14 AM   #1 (permalink)
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Default Indicators / Oscillators

Indicators / Oscillators

A technical indicator is a method of chart analysis, usually of price over time or volume, using various formulae designed to highlight specific characteristics and provide signals to help forecast market movements. Indicators can also be derived from the use of trendlines and price patterns, which are not based on formulae and are more subjective.

As markets, securities, and commodities flucuates, prices tend to over compensate, either by moving too high or too low. Oscillators are derived from these price movements. They are particularily handy in determining trading ranges or trend reversals. Indicators and oscillators are charted in a separate window typically displayed below the price chart.

Click to see a page with a quick description to each indicator
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