Learn how to measure the magnitude of price changes in 11 minutes Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Investopedia / ...

Most traders jumping into the field of technical analysis learn about the Relative Strength Index (RSI) indicator first. Many also learn (the hard way) that “RSI overbought” is not an automatic sell.

Most traders will tell you “the trend is your friend” and for good reason. When trading on shorter timelines, fundamental data like earnings and margins generally matter less than they do for ...

If you want to add a useful trend technical indicator to your trades, average directional index (ADX) is a great place to start. This article explains how to use the ADX to improve your trading ...

Looking at a stock chart is a great way to gain instant visual insight into the performance and momentum of a stock market index like the S&P 500. Yet, even broad-market visualizations need context.

How the Relative Strength Index (RSI) Works As a momentum indicator, the relative strength index compares a security's strength on days when prices go up to its strength on days when prices go down.

RSI helps identify potential price reversals by using a 0-100 scale to assess if stocks are overbought or oversold. Traders utilize RSI for spotting ideal times to enter or exit trades, adjusting ...