Stock technical indicators are mathematical calculations based on the price, volume, or open interest of a security, which are used to forecast future price trends. Technical indicators are widely used by traders and investors to make informed investment decisions. Now, TipRanks users can find technical indicators on every stock. For example, click here to see AAPL stock‘s technical analysis.
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Some of the most commonly used technical indicators include:
- Moving Averages – A moving average is the average price of a stock over a specified number of days. It helps to smooth out the price action and filter out noise from the market.
- Bollinger Bands – Bollinger Bands are plotted two standard deviations away from a simple moving average and are used to indicate overbought and oversold conditions in the market.
- Relative Strength Index (RSI) – RSI is a momentum oscillator that measures whether a stock is overbought or oversold.
- MACD (Moving Average Convergence Divergence) – MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a stock’s price.
- Stochastic Oscillator – Stochastic Oscillator is a momentum indicator that shows the location of the current closing price relative to the high/low range over a set number of periods.
Conclusion
It is important to note that technical indicators are just one tool in an investor’s toolbox and should not be relied upon exclusively. It is always a good idea to use a combination of technical and fundamental analysis to make informed investment decisions.
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