This article will be looking at a few of the most popular trading indicators and what they measure.
We will start by looking at the MACD indicator, which plots two exponential moving averages on a chart. The MACD is a lagging indicator, meaning it reacts to the price movement after it has already happened.
The second indicator we will look at is the RSI or Relative Strength Index. This indicator measures momentum and strength in an asset’s price movement. The RSI can be used to identify overbought or oversold conditions in an asset’s price movement and make buy or sell decisions based on those readings.