Common Chart Indicators

Trading is like building a house--you gotta have the right tool for the job at hand. So let's put more tools in our tool box!

Lessons in Common Chart Indicators

1. Bollinger Bands

   What better way to start building up your trading toolbox than by reading up on Bollinger Bands!

2. Moving Average Convergence Divergence (MACD)

   The MACD is used to identify moving averages that indicate a new trend. With a MACD, it's all about three numbers.

3. Parabolic SAR

   In trading trending markets, it is equally important to identify when the trend ends. The parabolic SAR might be just what you need!

4. Stochastic

   What makes Stochastic one of the most favorite tools of many BabyPips.com trade bloggers?

5. Relative Strength Index

   If you find that Stochastic isn't your cup of tea, then you might want to take a look at the good ol' RSI.

6. Average Directional Index

   ADX is typically used to identify whether the market is ranging or starting a new trend. Here's how traders usually read ADX signals:

7. Ichimoku Kinko Hyo

   No, "Ichimoku Kinko Hyo" ain't Japanese for "May the pips be with you," but it can help you grab those pips nonetheless.

8. Putting It All Together

   Now that you know how some of the most common chart indicators work, you're ready to get down and dirty with some examples.

9. What is the Most Profitable Indicator?

   Now on to the good stuff: Just how profitable is each indicator on its own?

10. Summary: Common Chart Indicators

    Here's a recap of the latest trading tools that you've learned that will make your momma proud!

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