2. Technical Indicators Flashcards
1
Q
How do moving averages work?
A
Calculates average price for the last candlesticks and draws them into the chart, by creating a line
2
Q
What affects the speed of a moving average?
A
The more candlesticks you use the slower the moving average will react to a change in price
3
Q
How do you get technical indicators?
A
There is special software you can get that will calculate these indicators for you, sometimes brokers offer software also
4
Q
How do Technical Indicators work?
A
Based on the assumption that all relevant information about an asset is reflected by its price, by analysing past price movements a technical indicator can make predictions about the future direction of price
