Key Indicators

This chapter discusses the key indicators for stock trading. All indicators in technical analysis are mathematical attempts to predict the future trend of stock prices based on historical data. Indicators are used as added value to the analysis of price movements to form buying and selling decisions. Indicators are not indubitable and should only be used as handy tools. In calculating indicators, it is important to ensure that price data are adjusted accordingly if there are changes to the company's equities as a result of schemes of arrangements, rights issues, or bonus issues. It is also necessary to make adjustments to the data when trading in the shares is suspended. It is found that if the price data are not adjusted, especially when trading in the shares is suspended for a long period, it is not advisable to do any wave count, or any reading of the indicators, or patterns the resumption of trading.