Learning centreLesson 06 of 8
Advanced
14 min readEducationalTechnical indicators
Moving averages, RSI and why indicators are summaries rather than signals.
Averages smooth, they do not predict
A moving average is a lagging summary of past closes. Its value is in reducing noise.
Oscillators
RSI compresses momentum into a 0-100 range. Overbought can stay overbought for a long time in a trend.
Confluence and over-fitting
Stacking ten indicators usually means measuring the same thing ten times.
Knowledge check
Answer to reveal the explanation
1. What does RSI measure?
0 of 1 correct
Key takeaways
- Indicators are derived from price.
- Regime matters more than the reading.
- Fewer, understood tools beat many.
Zoflix is a simulated trading environment for education only. Prices and results are for demonstration and do not represent financial advice or real trading performance.