Indicator encyclopedia
What an indicator shows—and what it cannot tell you.
RSIMACDMAATR
RSI: relative strength index
RSI compares recent gains and losses to express price momentum on a 0–100 scale. It does not value a business or forecast returns.
MACD: trend and momentum
MACD examines momentum through the difference between fast and slow moving averages. A common setting is 12, 26, 9; settings can vary.
Moving averages: SMA and EMA
Moving averages smooth a window of prices. SMA gives observations equal weight; EMA places more weight on recent observations.
ATR: average true range
ATR smooths price ranges that account for gaps. It measures the size of movement, not its direction or a buy/sell decision.