- Trendline indicators, Oscillator, and Momentum
The pro trader uses the tool in the form of an indicator to perform the analysis before trading. Lots of indicators used for technical analysis. But here I will discuss some of the most popular and often used by traders.
Indicators can be classified into 3 types, namely trendline indicators, oscillators, and momentum.
The trendline indicator has the main function of knowing the current trend with the range of period (this indicator can also be used to know other condition, such as support and resistance point).
Oscillator indicator has a characteristic that is limited range of values, usually 0-100 RSI, Stochastic oscillator is an example of this type of indicator is usually used to determine the overbought and oversold points that eventually trigger an uptrend or downtrend.
The momentum indicator is used to find out how fast a trend accelerates so we can know how long the trend will last.