Posts (page 15)
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14 min readAverage True Range (ATR) is a technical indicator commonly used in day trading to measure the volatility of a security. It was developed by J. Welles Wilder Jr. and provides traders with an insight into the magnitude of price changes. Unlike other volatility indicators, such as Bollinger Bands or standard deviation, ATR considers gaps and limit moves in its calculations, making it more accurate.
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9 min readThe Detrended Price Oscillator (DPO) is a technical analysis tool used by traders to identify the underlying cycle or trend of a security's price. It helps traders filter out short-term price movements and focus on the longer-term trend, providing insights into potential reversal points.The DPO calculates the difference between a past price and a moving average (typically a simple moving average) shifted back by a specific number of periods.
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17 min readThe Moving Average Convergence Divergence (MACD) is a popular technical analysis tool used to identify potential trend reversals, signal buying or selling opportunities, and provide confirmation of trend strength. It consists of two lines plotted on a chart: the MACD line and the signal line.The MACD line is derived by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result is a line that oscillates above and below the zero line.
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9 min readThe Accumulation/Distribution (A/D) indicator is a popular technical analysis tool used by traders to measure the buying and selling pressure within a security over a specific period of time. It is primarily utilized to identify trends, confirm price movements, and provide insights into potential reversals in the market.The A/D indicator calculates the cumulative flow of money into or out of a security by considering the relationship between the closing price and the trading volume.
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12 min readThe Rate of Change (ROC) indicator is a momentum oscillator that measures the percentage change in price over a specified time period. It helps traders identify the speed at which prices are changing and assess the strength of a trend.To apply the ROC indicator in trading, you can follow these steps:Calculation: ROC is calculated by taking the current price and subtracting the price from a specified number of periods ago.
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14 min readRate of Change (ROC) is a technical indicator commonly used in day trading to measure the speed at which a stock's price is changing. It helps traders identify the momentum behind a stock's price movement. ROC is calculated by comparing the current price of a stock with its price a certain number of periods ago.In day trading, ROC is typically calculated over a short-term period, such as a few minutes or hours.
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7 min readThe Larry Williams %R indicator is a technical analysis tool commonly used in trading to identify overbought and oversold conditions in the market. Developed by Larry Williams, this indicator is also known as the Williams %R or simply %R.The %R indicator is a momentum oscillator that fluctuates between 0 and -100, with values above -20 indicating overbought conditions, and values below -80 indicating oversold conditions.
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10 min readMoving Average Envelopes are a technical analysis tool used in trading to identify potential trends and support and resistance levels. They consist of two lines plotted above and below a moving average line. The upper line is typically drawn by plotting a certain percentage (usually 1% or 2%) above the moving average, while the lower line is plotted by subtracting the same percentage below the moving average.
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13 min readThe Arms Index, also known as the TRading INdex (TRIN), is a technical analysis indicator that helps swing traders gauge the stock market's overall sentiment and strength. Developed by Richard Arms in the 1960s, it measures the ratio of advancing stocks to declining stocks and the ratio of advancing volume to declining volume. Swing traders can utilize the Arms Index to identify potential reversal points and make informed trading decisions.
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10 min readThe On-Balance Volume (OBV) is a technical indicator that is commonly used in trading analysis to assess the cumulative buying and selling pressure of a particular security over a specific period of time. It provides valuable insights into the volume and price movements of an asset.
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9 min readThe Momentum indicator is a popular technical analysis tool used by traders to gauge the speed and strength of a price movement. It measures the rate of price change over a specified period and helps identify potential buying or selling opportunities. Here's how to use the Momentum indicator in trading:Calculation: The Momentum indicator is calculated by comparing the current price with the price at a specific period in the past.
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11 min readAverage True Range (ATR) is a popular technical indicator used by traders, including scalpers, to measure market volatility. It was developed by J. Welles Wilder and is commonly used to assess the potential range of price movements. The ATR indicator takes into account the highest and lowest prices of a given period, as well as the closing price of the previous period.