IQ Option Releases a Glossary of Terms for Technical Indicators

IQ Option Releases a Glossary of Terms for Technical Indicators

IQ Option, the cryptocurrency and CFD trading platform, has released a new glossary of technical indicator terms so users can have a better understanding on how technical analysis works.

IQ Option has recently created a new short glossary of technical indicator terms in order to educate their users and show people the differences when using indicators. The four indicator terms that IQ Option defines in this glossary are:

• leading indicators
• lagging indicators
• period
• divergence

Leading indicators are factors that are suppose to shift and effect the price movement of an asset before the price movement actually occurs. Some examples of leading indicators are RSI, Stochastic, and ADX. Lagging indicators are the opposite of leading indicators, and confirm the current direction of price movement instead of indicating a future shift in the price movement. It is important to try and combine both types of indicators in order to get in-depth chart analysis. The period is the length of time measured in a chart candle, so traders can read their charts accurately. When an indicator shows different information than the chart suggests, that is known as a divergence.

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