A technical indicator is a method of chart analysis, usually of price
over time or volume, using various formulae designed to highlight
specific characteristics and provide signals to help forecast market
movements. Indicators can also be derived from the use of trendlines
and price patterns, which are not based on formulae and are more
subjective.
As markets, securities, and commodities fluctuates, prices tend to
over compensate, either by moving too high or too low. Oscillators are
derived from these price movements. They are particularly handy in
determining trading ranges or trend reversals. Indicators and
oscillators are charted in a separate window typically displayed below
the price chart. [Continue reading see http://www.chartfilter.com/io.htm
]
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