7 Technical Indicators to Build a Trading Toolkit

TABLE OF CONTENTS

1. On-Balance Volume
2. Accumulation/Distribution Line
3. Average Directional Index

4. Aroon Indicator

5. MACD

6. Relative Strength Index

7. Stochastic Oscillator

Technical indicators are used by traders to gain insight into the supply and demand of securities and market psychology. Together, these indicators form the basis of technical analysis. Metrics, such as trading volume, provide clues as to whether a price move will continue. In this way, indicators can be used to generate buy and sell signals. In this list, you’ll learn about seven technical indicators to add to your trading toolkit. You don’t need to use all of them, rather pick a few that you find help in making better trading decisions.

KEY TAKEAWAYS

• Technical traders and chartists have a wide variety of indicators, patterns, and oscillators in their toolkit to generate signals.
• Some of these consider price history, others look at trading volume, and yet others are momentum indicators. Often, these are used in tandem or combination with one another.
• Here, we look at seven top tools market technicians employ, and…