More Indicators

Apart from the Indicators that I have mentioned, there are many other types of indicators you can use to help you anticipate future price movements.

Patterns
There are many patterns that can emerge from the graphics of the market information provided in the
chart. The following are the most common patterns :-

1. Trendlines
     Trendlines indicate whether the prices are in an upward or downward trend.
     - If the latest Support and Resistance level is higher than the previous succession of Support and
       Resistance, this is an uptrend. The graphics look a bit like a staircase going up.
     - If the latest Support and Resistance level is lower than the previous succession of Support and
       Resistance, this is a downtrend and looks a bit like a staircase going down.

2. Reversal Pattern. An uptrend is said to have run its course when the new Support and Resistance
    level fails to exceed the previous ones. Similarly, a downtrend is likely to end when the new Support
    and Resistance level is higher than the previous ones. A pattern indicating that the downtrend will
    reverse into an uptrend or vice versa is known as a Reversal Pattern. The most common Reversal
    Patterns are the Head and Shoulder Top or Bottom, the Double Top or Bottom and Island Reversals.

3. Continuation Patterns
    Continuation Patterns indicate that the market will continue with its existing pattern, whether uptrend
    or downtrend. Some common Continuation Patterns are Triangles, the Flags and Pennants and Gaps.

Candlesticks
The Patterns mentioned earlier actually consists of small candlesticks which are usually either red or green in colour. The Green candlestick is an UP candle, which means the closing price is higher than the opening price. The Red candlestick is a DOWN candle which means the closing price is lower than the opening price. There are many different types of candlesticks as Indicator to price movement. Some of the common types of candlesticks are :-

1. Marubozu - which indicates a continuing pattern ;
2. Doji - which indicates a reversal pattern.

I will not elaborate further on the Candlesticks as these are only useful indicators for experienced or position traders ( to be discussed later). If you are a beginner, using too many Indicators may only confuse you and will not help much in your Buy/Sell decisions. As such, it is advisable to stick to the Moving Averages and Support-Resistance as Indicators.