Posts (page 17)
-
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.
-
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.
-
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.
-
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.
-
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.
-
9 min readThe Keltner Channel is a technical analysis tool that helps traders identify potential trading opportunities in the financial markets. It consists of an upper band, a middle line, and a lower band, which are plotted on a price chart. The upper and lower bands are calculated using the Average True Range (ATR), taking into account market volatility.Traders use the Keltner Channel to identify overbought and oversold conditions in the market.
-
11 min readChandelier Exit is a popular technical indicator used in trading and investing. It was developed by Charles Le Beau and it primarily helps traders identify potential exit points for their trades.The Chandelier Exit is mainly used to set trailing stop-loss orders. It calculates a stop-loss level that trails the price action in a trade, allowing for the potential capture of larger profits while minimizing downside risk.
-
10 min readThe Chaikin Money Flow (CMF) indicator is used in trading to measure the amount of money flowing in and out of a particular asset or security. It is named after its creator, Marc Chaikin, and helps traders analyze the buying and selling pressure of a stock.The CMF indicator combines price and volume data to provide insights into market trends and potential reversals. It utilizes two main components: price accumulation and volume accumulation.
-
9 min readThe Commodity Channel Index (CCI) is a popular technical indicator used by traders to identify potential buy or sell signals in the market. Developed by Donald Lambert in the 1980s, the CCI measures the current price level relative to its historical average.To use the CCI in trading, you need to follow these steps:Calculate the CCI value: The CCI is calculated using a formula that compares the current price, its moving average, and a measure of standard deviation.
-
13 min readThe Average Directional Index (ADX) is a technical indicator that helps traders determine the strength of a trend. It was developed by J. Welles Wilder and can assist traders in identifying potential opportunities to enter or exit trades.To trade with the Average Directional Index, traders often follow these steps:Understanding ADX Levels: The ADX scale ranges from 0 to 100. When the ADX reading is below 20, it signifies a weak trend, and traders may avoid entering trades.
-
12 min readThe Williams %R indicator is a popular technical analysis tool used in trading to identify overbought or oversold conditions in a particular asset. It was developed by Larry Williams, a renowned trader and author.
-
11 min readThe Average Directional Index (ADX) is a technical indicator used by traders to measure the strength and direction of a trend. It provides objective signals that help traders identify whether a market is trending or not and determine the strength of the trend.To utilize the ADX in trading, you need to understand its components and how they interact.