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Chapter 4. The Basics of Technical Analysis > Technical Analysis Indicators

Technical Analysis Indicators

In addition to all the various price chart patterns, Technical Analysts use a host of Technical Indicators. These are typically mathematical formulas, which are derived from price action and in some cases volume as well.

As with all aspects of Technical Analysis, I should warn you that it’s easy to get lost in all the jargon and different techniques that exist. Personally I only use a few patterns or indicators, but I know many traders who use different ones both very successfully and unsuccessfully. This chapter is all about making you aware of some of the different techniques and indicators that exist. Follow-up is essential.


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