Section 3: Trend Indicators
Technical Analysis / Indicators
In this section, trend indicators are highlighted. There are many ways to identify and follow the trend. Most of the time, these can also show dynamic supports and resistances.
Bollinger bands show price volatility by using price averages and standard deviation.
Moving Averages & ADX
Moving averages offer quick trend identification signals as well as dynamic supports and resistances. ADX on the other hand can identify if the market is currently trending or ranging.
Ichimoku Kinko Hyo
The Ichimoku kinko hyo indicator is a japanese indicator that allows traders to see if there is equilibrium in one glance. It is composed of 5 lines that show trend, supports and resistances, and momentum. When all are combined, a trade signal is generated.
Heiken ashi is more of a type of candlestick rather than an indicator. It smoothens out the rough movements of the Japanese candlesticks with added factors on trend and momentum.
Parabolic Stop and Reverse is a simple trend following indicator that presents itself as dots above or below the price. It can easily show the current trend as well as a great spot to place your stop loss.
Zigzag shows the big swings that the market has made which identifies recent tops and bottoms. These can serve as anchor points for supports and resistances, as well as counting highs and lows for manual trend identification.
The ADX indicator can tell if the market is trending or ranging. In addition, the + and - DI lines can also signal trend direction.