Understanding the calculation method behind a technical indicator can give investors a deeper understanding of what the indicator is measuring and how it is generated. This can help to provide a more informed interpretation of the signals generated by the indicator and to determine its relevance and reliability in a given market context.
It's important to note, however, that the calculation method behind a technical indicator is only one aspect to consider. Other factors, such as the time frame and the market context in which the indicator is being used, can also have a significant impact on the signals generated by the indicator.
That being said, gaining a deeper understanding of technical indicators can be a valuable tool for investors who want to make informed investment decisions and to effectively manage their portfolios. By learning about the calculation methods and the interpretation of the signals generated by different technical indicators, investors can develop a more comprehensive and effective approach to their technical analysis.