【Beginner to Advanced】In this session, we will discuss a very core concept in trading: technical indicators.

In technical analysis, technical indicators are important tools that help traders identify potential buy or sell opportunities. They analyze market historical data (such as price, trading volume, time cycles, etc.) through mathematical calculations to help traders analyze market trends and determine the right timing to buy or sell.
This session introduces the most basic technical indicator: Moving Average (MA), which is also the foundation for many complex technical indicators.
MA mainly falls into 3 categories:
1️⃣ Simple Moving Average (SMA)
The simplest moving average, which calculates the average price over a specified time period. It smooths out price fluctuations and reflects the market's average cost.
Features:
- Assigns equal weight to all prices within the period.
- Good at following trends.
- Reacts slowly to price changes, with a lag.
2️⃣ Exponential Moving Average (EMA)
EMA gives more weight to recent prices, so it responds more quickly to price changes than SMA, making it suitable for short-term or fast-moving markets.
Features:
- More sensitive to recent price fluctuations.
- Since the current value includes the previous period's EMA, EMA has an "accumulation effect."
3️⃣ Weighted Moving Average (WMA)
WMA assigns different weights to prices in each period, with more recent prices having greater weight, emphasizing the latest market dynamics.
Features:
- More sensitive to recent price fluctuations, with more flexible weight distribution.
- Reacts faster to short-term changes than SMA and EMA.
There are many commonly used indicators, so I won't detail each one here. A comparison of different indicators is shown in the diagram below.
In the future, I will break down the commonly used indicators, explain their principles, and help us better utilize and combine these indicators.