VideoCharts7 min read
What the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
MACDdo moving averages ka farak dikhane wala indicator
Moving Average Convergence Divergence: an indicator built from the gap between two exponential moving averages, used to gauge trend momentum and its shifts.
MACD, Moving Average Convergence Divergence, is a momentum indicator built from two exponential moving averages, typically 12 and 26 periods. The MACD line is the difference between them, a 9-period signal line is drawn on top, and a histogram shows the gap between the two. When the MACD line crosses above the signal line, momentum is turning up; a cross below suggests it is turning down. Traders also watch for divergence, when price makes a new high but MACD does not, which can warn that a trend is losing strength. Suppose Nifty climbs to a new high but the MACD histogram is shrinking; a trend follower might tighten stops rather than add. MACD lags price because it is built from averages, so in a sideways market it gives many false crosses. It works best as confirmation of a trend seen on the price chart, not as a standalone trigger.
Related terms
Lessons that use this term
VideoCharts7 min read
Candlestick patterns for beginners: the five worth learning first
A candle is four prices drawn as one shape. Learn to read the shape first, then five patterns that only mean something at the right place on the chart.
Charts7 min read
Support and resistance: how to find the levels that matter
Support and resistance are the prices where the market has changed its mind before. Here is how to find the ones worth marking and how to use them with a stop.