Digital Ally Technical Analysis (NASDAQ:DGLY)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. Just by looking at the Digital Ally stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the DGLY stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Digital Ally. Technical analysis uses an approach for Digital Ally stock analysis that does not care for the fair value of a company but uses price and volume data only.
Digital Ally Moving Average
Moving averages show the DGLY stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Digital Ally are mostly signals of long term trends and will help long term traders.
Digital Ally Bollinger Bands
Bollinger bands comprise of a center line usually DGLY SMA, and two DGLY stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the upper band in the context of Digital Ally bollinger bands.
Digital Ally Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Digital Ally MACD indicator is below 0 indicating a bearish trend.
Digital Ally Relative Strength Index
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. The relative strength index of DGLY stock is 50.