Glossary Term

Technical Indicator

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Technical indicators are used by technical analysts for reading the current state of play in an asset’s price chart with a view to anticipating future movements in price. They consist of mathematical computations that try to identify the momentum, volume, volatility and strength of the current price action. The data used in order to calculate these indicators is the historical price action of an asset and the results of these studies are normally plotted as trendlines above the current price action.

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