twynedocs.com
-
16 min readFibonacci retracements are a popular tool used in technical analysis by traders to identify potential levels of support and resistance in financial markets. These levels are calculated based on Fibonacci ratios, which are derived from the Fibonacci sequence—a series of numbers where each number is the sum of the two preceding numbers (e.g., 0, 1, 1, 2, 3, 5, 8, 13, 21, and so on).
-
14 min readWilliams %R, also known as the Williams Percent Range, is a popular technical indicator used by traders to identify overbought and oversold levels in a market. Developed by Larry Williams, this oscillator measures the potential strength of a price movement within a specific period of time. By using Williams %R, traders can gain insights into the momentum of a security and make informed trading decisions.
-
11 min readThe Force Index (FI) is a technical analysis tool used by traders to gauge the strength of price movements and identify the potential reversal points in the market. It was developed by Dr. Alexander Elder.To trade with the Force Index, traders typically follow these steps:Calculation: The Force Index is calculated using three components - price change, trading volume, and a time period.
-
18 min readThe Mass Index (MI) is a technical indicator used in stock trading to identify potential reversals in trends. Developed by Donald Dorsey in the 1990s, it is primarily used to detect range expansions and reversals in price movements. The Mass Index measures the volatility within a specific time period and provides valuable insights into potential price reversals.
-
11 min readRate of Change (ROC) is a fundamental concept in mathematics and physics that measures the ratio at which one quantity changes in relation to another quantity. Specifically, it calculates the percentage change in a variable over a specified time period.ROC is widely used in various fields, including finance, economics, physics, and engineering. In finance and economics, it is a popular tool for analyzing price movements in stocks, commodities, and other assets.
-
15 min readAcceleration Bands are a technical analysis tool that can be used in swing trading to identify potential price reversals and momentum shifts. These bands are based on the concept of volatility and are designed to capture the acceleration or deceleration in price movements.To use Acceleration Bands in swing trading, first, you need to calculate the High and Low range bands. These bands represent the upper and lower boundaries within which the price movement is expected to stay.
-
13 min readThe Moving Max indicator is a technical analysis tool commonly used in financial markets to identify the maximum value of a variable over a specified period. It helps traders and investors understand the highest point reached by a particular data series. Here's how to use the Moving Max indicator:Choose a time frame: Determine the time frame over which you wish to calculate the moving maximum. This can range from short-term intraday periods to longer-term weekly or monthly intervals.
-
14 min readThe Volume Price Trend (VPT) indicator is a technical analysis tool that combines both volume and price movement to gauge the strength of a trend and identify potential reversals.To use the VPT indicator, follow these steps:Calculate the Money Flow Multiplier (MFM): First, determine the money flow multiplier by comparing the current closing price with the previous day's closing price. If the current closing price is higher, the MFM will be positive. If it is lower, the MFM will be negative.
-
6 min readThe Elder-Ray Index is a technical analysis tool developed by Dr. Alexander Elder for evaluating the strength of stock price trends and identifying potential trading opportunities. It consists of two components: the Bull Power and Bear Power.The Bull Power is calculated by subtracting the 13-day exponential moving average (EMA) of the high prices from the daily high price. It represents the buying pressure in the market.
-
12 min readWhen it comes to scalping, candlestick patterns play a crucial role in identifying potential short-term price movements. Candlestick patterns are visual representations of price action that can help traders make quick decisions based on the patterns formed by the open, high, low, and close prices of an asset.Scalping is a trading strategy where traders aim to make profits from small price movements within a short period.
-
6 min readThe Mass Index indicator is a technical analysis tool that is used to identify potential reversals in the price trends of stocks, commodities, or other financial instruments. It was developed by Donald Dorsey in the 1990s.To apply the Mass Index indicator in trading, you need to follow these steps:Calculation: The Mass Index calculates the volatility dispersion by analyzing the difference between high and low prices over a specified number of periods. The default setting is usually 25 periods.