ConnectwithusIfyou’replanningtoholdaportfolioofbluechipstockswellintoretirement,thenshort-termmovementsinthemarketarenotlikelyyourbiggestworry.However,ifyoudabbleinthestockmarketonaday-to-daybasis,orifyousimplywanttoknowwhatdrivesthethinkingofothermarketparticipants,itcanbeverybeneficialtounderstandthebasicsoftechnicalindicators.Manytradersswearbythemtohelpwiththetimingoftheirtradesortoalertthemoftrends.But,evenforaninvestormorefocusedontheunderlyingfundamentalsofcompanies,learninghowtheseindicatorsworkcanprovideaddedconvictiononneworexistingtrades.TypesofTechnicalIndicatorsToday’sinfographiccomestousfromStocksToTrade.com,anditexploresthefundamentalsbehind12ofthemostcommonly-usedtechnicalindicators.Itdifferentiatesbetweenlaggingandleadingindicators,andalsoexplainssomebasictacticsforincorporatingthesemarkersintoanoverallinvestmentstrategy.Theinfographicdifferentiatesbetweenfourdifferenttypes,includingtrend,momentum,volatility,andvolumeindicators.TrendindicatorsThesetechnicalindicatorsmeasurethedirectionandstrengthofatrendbycomparingpricestoanestablishedbaseline.MovingAverages:Usedtoidentifytrendsandreversals,aswellastosetupsupportandresistancelevels.ParabolicStopandReverse(ParabolicSAR):Usedtofindpotentialreversalsinthemarketpricedirection.MovingAverageConvergenceDivergence(MACD):Usedtorevealchangesinthestrength,direction,momentum,anddurationofatrendinastock’sprice.MomentumindicatorsThesetechnicalindicatorsmayidentifythespeedofpricemovementbycomparingthecurrentclosingpricetopreviouscloses.StochasticOscillator:Usedtopredictpriceturningpointsbycomparingtheclosingpricetoitspricerange.CommodityChannelIndex(CCI):Anoscillatorthathelpsidentifypricereversals,priceextremes,andtrendstrength.RelativeStrengthIndex(RSI):Measuresrecenttradingstrength,velocityofchangeinthetrend,andmagnitudeofthemove.VolatilityIndicatorsThesetechnicalindicatorsmeasuretherateofpricemovement,regardlessofdirection.Bollingerbands:Measuresthe“highness”or“lowness”ofprice,relativetoprevioustrades.AverageTr