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Technical Indicators: Market Technicians Trading Tools

  • Jacinta ChanEmail author
Chapter

Abstract

Technical indicators are tools of the trade that market technicians use to determine the trends in the market. A technical indicator is a mathematical formula, imputed in trading systems to generate timely buy or sell signals. Technical indicators are generally categorized into two major groups: lagging indicators and leading indicators. Lagging technical indicators are simple moving average, moving average crossover, and AMA′ (Chan, 2018). Simple artificial intelligence methods for time series are discussed for future use. The chapter reviews these techniques to prepare the foundation for the trader to select the trading tool of his choice to begin building a technical trading system in an intelligent manner. A summary of the strengths and weaknesses of existing trading techniques is presented as a conclusion.

Keywords

Technical indicators Simple moving average Adjustable moving average′ (AMA′) Artificial intelligence methods for time series 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.University of MalayaKuala LumpurMalaysia

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