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What Are the Four Types of Technical Indicators in the Stock Market?
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What Are the Four Types of Technical Indicators in the Stock Market?

TipRanks gives individual investors all types of invaluable stock research tools, including our unique Smart Score, which indicates whether a stock is likely to outperform the markets. Now, we have introduced technical analysis of stocks. There are several types of stock market indicators, but generally, they can be classified into four main categories.

Trend Indicators

Trend indicators help to identify the direction of the current trend in the market. Examples of trend indicators include moving averages and trend lines. You will find moving averages indicators and tables on TipRanks, in the Technical Analysis tab for each stock. For example, click here to see the moving averages of AMZN stock.

Momentum Indicators

Momentum indicators help to measure the strength of a stock’s price movement. Examples of momentum indicators include the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). Tipranks displays the RSI and an MACD indicator for every stock. For example, here is the MACD indicator for JNJ stock.

Volatility Indicators

Volatility indicators help to measure the level of market volatility and can provide insight into the potential for price movements. Examples of volatility indicators include Bollinger Bands and the Average True Range (ATR).

Volume Indicators

Volume indicators help to measure the level of trading activity in a stock. Examples of volume indicators include the On-Balance Volume (OBV) and the Accumulation/Distribution Line (A/D).

Conclusion

It’s important to keep in mind that no single indicator can provide a complete picture of the market. Traders and investors often use multiple indicators in combination to make informed investment decisions.

TipRanks gives you vast resources to use in your stock research. Turn to TipRanks to learn all about individual stocks, including technical analysis, analyst ratings, and beyond.

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