To date, there are over 20 technical indicators which technical traders use to guide their decisions. Such indicators often have complex mathematical formulas behind them and in the past, these indicators would have had to be manually formulated. However, as modern day traders, we now have computers to crunch these numbers for us and as such, most brokerage platforms are able to display these indicators with just a press of a button.

While some indicators are more popular than others, it is important to understand that technical indicators should never be used in isolation. Instead they should always be used in comparison with other indicators, preferably also with basic concepts of fundamental analysis.

Technical Indicator 1 : Simple Moving Average – 50 day and 200 day A foundation for most technical indicators, the simple moving average (SMA) helps traders to smoothen the price data of a stock over a period...