Technical Analysis—4: Indicators and oscillators

Summary

Technical indicators (some of which are called “oscillators”) are tools to augment chart analysis. While there are dozens of such indicators, most generally do the same thing—apply math to price history to derive an indicator 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.