When prices move in a horizontal band in non-trending markets, indicators that indicate correction levels within the trend are called oscillators, according to another definition. The trend indicator is used by traders to identify short-term overbought or oversold positions.
Trend Following, Oscillators, Volatility, and Support/Resistance are the four primary types of technical indicators. They are categorised according to their purpose, which can range from presenting the average price of a currency pair over time to offering a more accurate picture of support and resistance levels.
Trend, mean reversion, relative strength, volume, and momentum are the five categories of technical indicators.
When prices move in a horizontal band in non-trending markets, indicators that indicate correction levels within the trend are called oscillators, according to another definition. The trend indicator is used by traders to identify short-term overbought or oversold positions.
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