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What categories can the information given by technical indicators & overlays be broken down into?

I have discovered these four categories, but wonder if I'm on the right track: 1. trend 2. momentum 3. volatility 4. oversold / overbought.

Answers

  • markdmarkd mod
    edited July 28
    That's a good list. I think I would add support and resistance - for instance, price channels and trend lines, which are both overlays. Also, accumulation/distribution - OBV, Force. And, relative strength, which on Stockcharts is Price-Performance (not the same as RSI). For the last two, you would be looking for divergence - price and the indicator moving in opposite directions.
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