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Summary: Common Chart IndicatorS
Everything you learn about trading is like a tool that is being added to your trader's toolbox. Your
tools will give you a better chance of making good trading decisions when you use the right tool
at the right time.
Bollinger Bands.
Used to measure the market's volatility.
They act like mini support and resistance levels.
Bollinger Bounce
A strategy that relies on the notion that price tends to always return to the middle of the
Bollinger bands.
You buy when the price hits the lower Bollinger band.
You sell when the price hits the upper Bollinger band.
Best used in ranging markets.

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Bollinger Squeeze
A strategy that is used to catch breakouts early.
When the Bollinger bands "squeeze", it means that the market is very quiet, and a
breakout is eminent. Once a breakout occurs, we enter a trade on whatever side the price
makes its breakout.
MACD
Used to catch trends early and can also help us spot trend reversals.
It consists of 2 moving averages (1 fast, 1 slow) and vertical lines called a histogram,
which measures the distance between the 2 moving averages.
Contrary to what many people think, the moving average lines are NOT moving averages
of the price. They are moving averages of other moving averages.
MACD's downfall is its lag because it uses so many moving averages.
One way to use MACD is to wait for the fast line to "cross over" or "cross under" the
slow line and enter the trade accordingly because it signals a new trend.
Parabolic SAR
This indicator is made to spot trend reversals, hence the name Parabolic Stop And
Reversal (SAR).
This is the easiest indicator to interpret because it only gives bullish and bearish signals.
When the dots are above the candles, it is a sell signal.
When the dots are below the candles, it is a buy signal.
These are best used in trending markets that consist of long rallies and downturns.
Stochastic
Used to indicate overbought and oversold conditions.
When the moving average lines are above 80, it means that the market is overbought and
we should look to sell.

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Summary: Common Chart IndicatorS ? Everything you learn about trading is like a tool that is being added to your trader's toolbox. Your tools will give you a better chance of making good trading decisions when you use the right tool at the right time. Bollinger Bands. Used to measure the market's volatility. They act like mini support and resistance levels. Bollinger Bounce A strategy that relies on the notion that price tends to always return to the middle of the Bollinger bands. You buy when the price hits the lower Bollinger band. You sell when the price hits the upper Bollinger band. Best used in ranging markets. Bollinger Squeeze A strategy that is used to catch breakouts early. When the Bollinger bands "squeeze", it means that the market is very quiet, and a breakout is eminent. Once a breakout occurs, we enter a trade on whatever side the price makes its breakout. MACD Used to catch trends early and can also help us spot trend reversals. It consists of 2 moving averages (1 fast, 1 slow) and vertical lines called a histogram, which measures the distance between the 2 moving averages. Contrary to what many people think, the moving average lines are NOT moving averages of the price. They are moving averages of other moving averages. MACD's downfall is its lag because it uses so many moving averages. One way to use MACD is to wait for the fast line to "cross over" or "cross under" the slow line and enter the trade accordingly because it signals a new trend. Parabolic SAR ...
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