Indicator reference

Technical Indicator Guides

Learn how RSI, MACD, moving averages, Bollinger Bands, ATR, VWAP, and other technical indicators work in trading strategies.

Momentum indicators

Relative Strength Index (RSI)
RSI measures the speed and magnitude of recent price changes to evaluate overbought or oversold conditions. It oscillates between 0 and 100.
Stochastic Oscillator (Stochastic)
The Stochastic Oscillator compares a security's closing price to its price range over a given period. It measures momentum and identifies overbought/oversold conditions, oscillating between 0 and 100.

Moving Average Convergence Divergence (MACD)
MACD shows the relationship between two moving averages of a price. It reveals both trend direction and momentum strength.
Exponential Moving Average (EMA)
EMA is a moving average that gives more weight to recent prices, making it more responsive to new information than a simple moving average.
Simple Moving Average (SMA)
SMA calculates the average price over a fixed number of periods, giving equal weight to each period. It smooths price action to reveal the underlying trend.
Average Directional Index (ADX)
ADX measures the strength of a trend (not its direction). Values range from 0 to 100, with readings above 25 indicating a strong trend. It is derived from the directional movement indicators +DI and -DI.

Bollinger Bands (Bollinger Bands)
Bollinger Bands consist of a middle SMA(20) band with upper and lower bands at ±2 standard deviations. They measure volatility and relative price levels.
Average True Range (ATR)
ATR measures market volatility by calculating the average of true range values over a period. It does not indicate trend direction — only how much an asset moves, on average, per period.

On-Balance Volume (OBV)
OBV is a cumulative volume indicator that adds the period's volume when the close is up and subtracts it when the close is down. It measures buying and selling pressure to confirm price trends.
Volume Weighted Average Price (VWAP)
VWAP is the average price weighted by volume over a given period (typically intraday). It represents the fair value benchmark that institutions use to evaluate execution quality.

RSI vs MACD
RSI and MACD are both momentum indicators, but they measure momentum differently. RSI measures overbought/oversold levels (0-100), while MACD shows the relationship between two EMAs.
SMA vs EMA
SMA and EMA are both moving averages, but they weight price data differently. SMA gives equal weight to all periods; EMA emphasizes recent prices, making it more responsive.
Bollinger Bands vs ATR
Bollinger Bands and ATR are both volatility indicators, but they express volatility differently. Bollinger Bands show volatility as price bands around a moving average; ATR quantifies it as a single n