Technical indicators which traders use to suggest times at which contracts might be taken on or liquidated. Examples: 1) Trend lines A possible signal to either liquidate a long position or short a contract is triggered when up trending prices cross and go below an up trend lineexample. Conversely, a possible signal to either liquidate a short position or assume a long position is triggered when down trending prices cross and go above a downtrend line. 2) Moving Average A possible buy or sell signal is triggered when prices cross a moving average. 3) Multiple Moving Averages In this case, two moving averages are used. One with a shorter averaging period than the other. The possible buy and sell signals are triggered when the shorter average crosses the longercrossing in the upward direction triggers a possible buy while crossing in the downward direction signals a possible sell.
These are just three examples of what could be hundreds of indicators which traders have developed to aid them in deciding when to enter and exit the market. Traders use these various indicators individually and in combination. They use various indicators and combinations with various commodities and at various times. The practice of using these indicators is widely variable and range from the very simple to the highly complex with some traders using systems which combine many indicators.
