Technical indicators are mathematical parameters that are constructed by intelligent design with the intent to be used as tools to predict stock prices. The indicators are constructed using stock price and volume data. View or create technical indicators at our example technical indicators
page. One signal market technicians look for is a divergence between certain indicators and the price action of a stock. A positive divergence (classic buy signal) exists when the price action of a stock is going down while the indicator is simultaneously becoming more bullish. A negative divergence is the opposite of a positive divergence.
There are hundreds of well known technical indicators. Well known technical indicators such as RSI
(Relative Strength Index), Stochastics
, Moving Average Cross-overs
were all contructed by humans. AiStockCharts.com goes far beyond relying on humans to construct new intelligent technical indicators. Every day the AI (Artifical Intelligence) programs run at AiStockCharts.com to find new and historically profitable technical indicators. Some traders may be surprised to find some well known technical indicators have worked well while others have not.
The figure below displays the relationship between stock price and volume data, basic chart analysis, technical indicators, chart patterns and technical analysis systems.