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WHAT IS INDICATOR ?

 Indicators are pattern-based signals produced by

the price, volume, and/or open interest of a
security or contract used by traders who follow
technical analysis. By analyzing historical data,
technical analysts use indicators to predict future
price movements.
SOME MAIN IMPORTANT INDICATORS
!
1. VWAP ( Volume Weighted Average Price )
2. SMA ( Simple Moving Average )
3. EMA ( Exponential Moving Average )
4. PIVOT POINTS.
5. MACD ( Moving Average Convergence & Divergence )
1. VWAP ( Volume Weighted Average Price )

 The Volume Weighted Average Price (VWAP) is a measurement that

shows the average price of a security, adjusted for its volume. It is
calculated by taking the total value of trading in the security and
dividing it by the volume of trades during that period.
VWAP INDICATOR !
2. SIMPLE MOVING AVERAGE.

 The moving average (MA) is a simple technical analysis tool that smooth's out
price data by creating a constantly updated average price.
 The moving average is calculated by adding a stock's prices over a certain period
and dividing the sum by the total number of periods.
 A simple moving average (SMA) is an arithmetic moving average calculated by
adding recent prices and then dividing that figure by the number of time periods
in the calculation average.
2. SIMPLE MOVING AVERAGE.
3. MOVING AVERAGE EXPONENTIAL

 The exponential moving average (EMA) is a technical chart

indicator that tracks the price of an investment (like a stock or
commodity) over time. The EMA is a type of weighted moving
average (WMA) that gives more weighting or importance to recent
price data.
 LENGTH :- It is simply the sum of the stock's closing prices during
a time period, divided by the number of observations for that period.
For example, a 20-day SMA is just the sum of the closing prices for
the past 20 trading days, divided by 20.
3. MOVING AVERAGE EXPONENTIAL
 4. PIVOT POINTS STANDARD !

 A pivot point is a price level that is used by traders as a

possible indicator of market movement. A pivot point is
calculated as an average of significant prices (high, low,
close) from the performance of a market in the prior
trading period. If the market in the following period trades
above the pivot point it is usually evaluated as a bullish
sentiment, whereas trading below the pivot point is seen as
bearish.
HOW TO CALCULATE PIVOT POINTS.

 Pivot Point Calculation Pivot point (PP) = (High + Low + Close) / 3.

 First resistance (R1) = (2 x PP) – Low.
 First support (S1) = (2 x PP) – High.
 Second resistance (R2) = PP + (High – Low)
 Second support (S2) = PP – (High – Low)
 Third resistance (R3) = High + 2(PP – Low)
 Third support (S3) = Low – 2(High – PP)
PIVOT POINTS CHART !!
 5. MACD ( Moving Average Convergence &
Divergence )
 Moving average convergence divergence (MACD) is a  trend-following momentum
 indicator that shows the relationship between two moving averages of a security’s
price. The MACD is calculated by subtracting the 26-period 
exponential moving average (EMA) from the 12-period EMA.
 Moving average convergence divergence (MACD) is calculated by subtracting the 26-
period exponential moving average (EMA) from the 12-period EMA.
 MACD triggers technical signals when it crosses above (to buy) or below (to sell) its
signal line.
 The speed of crossovers is also taken as a signal of a market is overbought or oversold.
 MACD helps investors understand whether the bullish or bearish movement in the
price is strengthening or weakening.