Hello Ben, TA is technical analysis, and MACD is a type of technical indicator
called moving average convergence divergence. RSI is relative strength index.
MACD is two exponentially smoothed moving averages plotted together,one short,
one long. They are usually plotted on the price chart, so divergences may
be spotted. Simply, a buy signal is given when the shorter MA line crosses
above the longer, but there is a lot more to it than that, and you can't go
by one indicator alone. RS is a ratio, the average of n days higher closes,
divided by the average of n days lower closes, where you pick n,
and is a good indicator of overbought and oversold conditions. A good book
to get started with is John Murphy's Technical Analysis of the Futures
Markets, the first book on TA I checked out of the library. I now own it.
Hope this is helpful, Wendy |
