top of page
indikatörler.jpeg

INDICATORS

Indicators are used in technical analysis to express how and in what direction the price moved in the past and the present moment, using mathematical calculations. Regardless of the indicator, data or data about the price are used in its calculation. These data; can be listed as opening, closing, highest, lowest and trading volume. So indicators do not show us the future. It only gives us information about the price in the past and at the time you analyzed it.

Indicators are used in technical analysis to express how and in what direction the price moved in the past and the present moment, using mathematical calculations. Regardless of the indicator, data or data about the price are used in its calculation. These data; can be listed as opening, closing, highest, lowest and trading volume. So indicators do not show us the future. It only gives us information about the price in the past and at the time you analyzed it.

We said that an indicator does not show us the future, but gives us an idea about the trading pressure. The work starts from this point on. When you combine the risk management you have used with the buy-sell signals from the indicators, you can get positive results.

The indicators that leave question marks when thought can only be resolved with experience. For example, what does the price above the 5-day moving average mean? What it shows you, according to your calculation method, is that the last value of the prices is above the average for the last 5 days. What could that mean? No, what if it is above, what if it is below. What it tells you is that it's just above a certain day in value. You can extend this from the intersection of the 2 moving averages to the RSI to the MACD.

At this point, other technical analysis tools such as support, resistance, trend, volume come into play. When used in a coordinated manner, almost perfect results can be obtained with all tools. But when used alone, especially to predict the future, bad results occur. Think about it, the MACD has given it! Then "I'll get". Or the RSI has gone overbought, what happens when you say "let me sell". I have seen very good trends start when the RSI enters the overbought territory. So what are we going to do, oh, are the indicators lying? The indicator neither lies to you, nor is it true. The indicator only reflects one situation to you.

Sometimes it is exaggerated so much that the graphic can be filled with indicators as if the more indicators are used, the better confirmation and healthier decisions will be made. However, healthier results can be obtained by using one indicator from each indicator family.

AUTHOR:

Ali Erkan TANACIOĞLU

“Investment information, comments and recommendations contained herein are not within the scope of investment consultancy.

Investment consultancy service; It is offered within the framework of an investment consultancy agreement to be signed between brokerage houses, portfolio management companies, banks that do not accept deposits and the customer.

The ratings contained herein are based on comments and personal opinions. These views may not be suitable for your financial situation and risk and return preferences.

Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations. "

bottom of page