Stochastics is a very popular indicator used by traders to predict when the market moves into the overbought or oversold conditions. 

This technical indicator was formulated by George Lane towards 1960. 

How stochastics work?

Think of a rocket shooting into the air. 

What happens when the rocket wants to start descending? It first slows down.

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RSI stands for the Relative Strength Index. It is a common technical indicator that you can use to classify stock price levels either as overbought or oversold. 

RSI can take any number between 0 and 100. An RSI value above 70 shows that people are overbuying given security. 

On the other hand, an RSI value of less than 30 shows that people are overselling the security. 

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MFI stands for Money Flow Index. 

It is one of the technical indicators used by traders to tell whether the market is in an overbought or oversold condition. 

In addition, you can use the MFI to identify deviations that point to a change in the market trend.

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This is an indicator used by technical analysts and investors to ascertain the strength of a trend.  Most of the time, Two indicators i.e. positive directional (+DI) and negative directional (-DI) indicators are involved in showing this trend.

Three lines are therefore included by ADX to help you evaluate and choose if you should take a long or short during trading. 

Long refers to buying of securities while short refers to the selling of securities.

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The developer of MACD is Thomas Aspray. He developed this histogram in 1986. The purpose of the MACD histogram is to calculate how far the signal line is from the MACD. 

Additionally, this histogram oscillates aloft and below the zero-line. 

The reason why Thomas developed the MACD Histogram was to predict crossovers of the signal line in MACD.

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This is an indicator of momentum which follows the trend. 

It shows the correlation between the moving averages of the prices of two securities.

To calculate MACD (Moving Average Convergence Divergence), EMA of the 26th day is subtracted from the EMA of the 12th day. 

EMA (Exponential Moving Average) also known as Exponential Weighted Moving Average (EWMA), focuses on adding weight in current information. The answer obtained from the calculation forms a MACD line.

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Moving average is widely used by most technical analysts. 

It refers to the average price of a stock over a specific period of time ranging from 7 days to 6 months even though, sometimes it is longer.

Moving average is taken as a lagging indicator. Most times, the price movements shown in price charts are too jerky and random such that you cannot get the clear picture. 

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Indicators and oscillators are common terms used by technical analysts. Indicators are calculations done to get more knowledge on the movement of prices on security by using price and mass of stocks. 

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Options trading is quite popular among investors, mostly because of the prices move quickly hence increasing or lowering earnings. 

Option strategies usually range from simple techniques to more complex ones.

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A put option is known in the investment market as a contract that gives the holder the right and not necessarily the obligation to sell a particular number of the underlying security at a given price over a given period. 

A put option is the reverse of a call option which allows the owner to purchase an underlying security at a particular price before the expiration of the option.

The concept of Put options can be easily understood from the following article.

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