Knowledge Hub
Intermediate 6 min read

Technical indicators, explained (RSI, MACD, Bollinger)

What the most common chart indicators measure — and their limits.

Technical indicators are math applied to price and volume. They don't predict the future — they summarize recent behavior so you can spot momentum, trend, and extremes at a glance.

RSI (Relative Strength Index)

A 0–100 momentum gauge. Above ~70 is often called 'overbought', below ~30 'oversold'. These are context clues, not automatic buy/sell triggers — strong trends can stay overbought for a long time.

MACD

Compares a fast and a slow moving average to show shifts in momentum. When the MACD line crosses its signal line, momentum may be turning.

Bollinger Bands

Bands drawn a couple of standard deviations around a moving average. Price near the upper band = stretched high; near the lower band = stretched low; narrow bands = low volatility that often precedes a bigger move.

XMarketPro computes all of these deterministically and the AI Technical panel (PRO) turns them into a plain-English read for the timeframe you pick.

Educational content only — not investment advice. Put it into practice on any stock page in XMarketPro.