MACD
The Moving Average Convergence Divergence (MACD) is a momentum and trend-following indicator that shows
the relationship between two moving averages of a stock's price. It consists of the MACD line (12-day EMA
minus 26-day EMA), the Signal line (9-day EMA of MACD), and the MACD histogram. Traders use it to identify
potential buy and sell signals, trend strength, and momentum shifts through crossovers and divergences.
RSI
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price
movements on a scale of 0 to 100. It's typically used to identify overbought or oversold conditions in
a stock. An RSI above 70 suggests the stock may be overbought (potential sell signal), while an RSI
below 30 indicates it may be oversold (potential buy signal). Traders also use it to spot divergences
and trend strength.
ATR
The Average True Range (ATR) is a volatility indicator that measures the average range between a stock's
high and low prices over a specific period, typically 14 days. It doesn't indicate price direction but
helps traders assess how much a stock typically moves, making it useful for setting stop-loss levels and
understanding market volatility. Higher ATR values indicate more volatility, while lower values suggest
less volatility.