IBM

Technical Analysis

Eleven indicators, each with a plain-language explanation. Educational information only.

RSI

Relative Strength Index measures the speed of recent price changes on a 0–100 scale.

Readings above 70 are conventionally described as overbought and below 30 as oversold. It is a momentum gauge, not a forecast.

Simple Moving Average: the plain average of the last 20 closing prices.

It smooths short-term noise. Compare it with the latest price to see how far price sits from its recent average.

Exponential Moving Average gives more weight to recent prices than the SMA.

It reacts faster than the SMA to new prices, so the two lines often diverge around sharp moves.

Moving Average Convergence Divergence compares a 12 and 26 period EMA.

The histogram shows the gap between the MACD line and its signal line. A positive histogram means MACD is above its signal line.

A moving average with upper and lower bands set two standard deviations away.

Wider bands mean higher recent volatility; narrower bands mean calmer price movement.

Average Directional Index measures trend strength, not direction.

Values below about 20 are often read as a weak trend, and above about 25 as a stronger one.

Average True Range measures how much price typically moves per period.

A higher ATR means larger average price swings. It says nothing about direction.

Compares the latest close with its recent high-low range (%K and %D lines).

Values above 80 are often called overbought and below 20 oversold; %D is a smoothed version of %K.

Commodity Channel Index measures how far price is from its statistical average.

Readings beyond +100 or -100 are often treated as unusually far from average.

Aroon Up and Down show how recently the highest high and lowest low occurred.

Aroon Up near 100 means a recent high; Aroon Down near 100 means a recent low.

On-Balance Volume adds volume on up days and subtracts it on down days.

The absolute number is not meaningful by itself; look at whether it rises or falls over time.