Common Classes of Studies

TradeStation offers ActivityBar studies, drawing objects (including a trendline), indicators, ShowMe and PaintBar studies, and ProbabilityMap studies, all of which can be used to analyze technical data, and all of which serve as the basis for your trading strategies. However, indicators comprise the vast majority of studies.  

Indicators function exactly as their name implies -they indicate various types of market activity when applied to price data charts. There are many different classes of indicators. Each class provides different information on price activity and market trends. Some only monitor a trend's momentum, while others are used to determine a trend reversal. Some indicators are used to spot oversold and overbought markets, while others are used in specific markets such as futures or options. How do you know which ones to use for your trading objectives? The answer to this question is easier than you might think.

Each class of study may include several indicators, all of which serve the same primary function, yet the methodology and parameters are different. Once you understand the primary function of a study, you will also know when and how to use it.

Some of the most basic and most commonly used classes of indicators are moving averages and oscillators, such as the Stochastic.