Chart analysis 4: Indicators and oscillators
Technical indicators are tools that can add to our chart analysis. There are dozens of such indicators, and generally do the same thing—derive an indicator from price history that oscillates between extremes to identify when prices are overdone in one direction or the other. In this session we’ll examine two important indicators, the Relative Strength Index (RSI), and stochastics.
Senior Strategist, Investor Education, E*TRADE from Morgan Stanley