TECHNICAL ANALYSIS TOOLS IN STOCK TRADING. TRADING SIGNALS OF INDICATORS

The article discusses methods of forecasting the price dynamics of financial assets traded on the stock exchange, based on the use of technical analysis tools. Exchange trading plays a significant role in the economic life of the country, attracting not only legal entities, but also individuals with its investment opportunities. The most important thing in this direction is the ability to predict the price movement, which is extremely difficult in high information activity. Technical analysis tools come to the investor’s aid, which makes it possible to build a predictive model of an asset’s price chart for a certain period. The methods of technical analysis are aimed at both long-term investors and those market players who prefer to profit from speculative operations on the stock exchange. At the same time, in all cases it is necessary to predict the dynamics of prices for certain assets. For this purpose, methods of technical analysis of markets are used, which are represented by various tools, among which the main assistants of investors are indicators, including trend indicators, and oscillators, proposed as tools for forecasting the price trend and price correction. The article discusses several indicators that are used in many trading terminals and allow traders to correctly assess the trend and open a trading position. Many indicators have a lagging nature, that is, confirmation signals are formed with a certain lag, which does not allow the trader to enter the transaction with maximum efficiency. To work in the trading terminal, traders are recommended to use a combination of signals from several indicators and oscillators. In addition, a very effective method is the use of divergences, which allow you to determine a trend change or price correction in advance, show the internal state of the market and the change in the mood of participants in the direction of opening positions. The use of emerging divergences of oscillators and the price chart will allow the trader to more accurately predict the trend and make trading transactions as efficiently as possible.

stock trading, indicators, oscillators, trading signals, divergence, trading terminal, asset price forecasting, moving averages, timeframe, trading

Okolelova E. Yu., Shibaeva M. A., Ovsiannikov A. S. Technical analysis tools in stock trading. Trading signals of indicators. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2024;1(66):64—68. DOI: 10.25683/VOLBI.2024.66.874.