Indicators are the lines formed out of calculations based on the price, volume, time, or another related parameter.
Indicators that are derived and plotted over the price chart use the same scale as the price and are known as Overlays.
Some of the popular Indicators are the following:
- Moving Average Convergence Divergence (MACD)
- Relative Strength Index (RSI)
- Williams %R
Some popular Overlays are the following:
- Moving Averages
- Moving Average Envelopes
- Parabolic SAR
- Bollinger Bands