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- Indicator Guide
- Indicator Basics
- Using IndicatorsMost indicators highlight a particular aspect of price or volume behavior.
- Favorite IndicatorsCharting indicators that I find most useful.
- Indicator SignalsRespect, whipsaws, divergence, and failure swings.
- Indicator Time FramesA key principle when using indicators: set the time frame to reflect the cycle being traded...
- Fibonacci NumbersFibonacci numbers are named after Leonardo Fibonacci, a twelfth century Italian mathematician, who discovered the unique properties of a particular number sequence.
- Linear RegressionLinear regression fits a straight line to the selected data using a method called the Sum Of Least Squares. The Sum Of Least Squares ...
- Using Indicators
- Compare Stocks/Indices
- Compare PricesIncredible Charts offers several options for comparing stock and/or index prices
- Price ComparisonA potent stock selection tool, Price Comparison charts the performance of a stock against an index or a related stock.
- Price DifferentialCompare bond yields or interest rates that share the same price axis.
- Price RatioA powerful tool for stock selection, Price Ratio is often referred to as relative strength or comparative strength. It compares the performance of a stock relative to an index or a related stock.
- Relative Strength (Compare)Relative Strength (Intercept) calculates relative strength of a second stock/index according to a selected base (intercept) date
- Compare Prices
- Moving Average Types
- Moving AverageThe Moving Average is a powerful measure of trend direction, achieved by smoothing price data. Moving Averages can also be used on median,typical and weighted closing prices as well as other indicators.
- Simple Moving AverageSimple moving averages are easy to construct, but prone to distortion.
- Exponential Moving AverageExponential moving averages achieve the benefits of weighted moving averages combined with ease of construction.
- Weighted Moving AverageWeighted moving averages are difficult to construct, but reliable.
- Wilder Moving AverageWilder moving averages are used mainly in indicators developed by J. Welles Wilder. Essentially the same as an exponential moving average, but use different weightings, for which users need to make allowance.
- Moving Average FiltersMoving average systems normally employ filters to reduce whipsaws.
- Moving Average High/Low/OpenA new variation on the moving average system is to calculate moving averages on the Highs or Lows, rather than on the Close.
- Selecting A Long-Term Moving AverageWhen tracking the primary trend you are faced with a wide choice of moving averages.
- Moving Average
- Moving Average Systems
- Two Moving AveragesFast and slow moving averages provide a powerful measure of trend strength and direction.
- Three Moving AveragesA more sophisticated system that uses a third moving average to identify ranging markets.
- Multiple Moving AveragesDaryl Guppy uses multiple moving averages to measure trends and identify likely reversals. The indicator compares multiple short-term and long-term exponential moving averages.
- Rainbow 3D Moving AveragesIvan Ballin's variation of Daryl Guppy's Multiple Moving Averages.
- Price EnvelopeSometimes referred to as Percentage Bands, price envelopes are plotted at a set percentage above and below a moving average.
- Keltner ChannelsChester Keltner's trend-following system uses bands plotted at a multiple of average true range to filter moving average crossovers.
- Two Moving Averages
- Moving Average Oscillators
- Commodity Channel IndexThe Commodity Channel Index (CCI) highlights overbought and oversold markets and likely turning points.
- Detrended Price OscillatorThis immensely powerful indicator isolates the short cycle and provides excellent trend signals.
- MA OscillatorGeorge Topalides' Moving Average Oscillator compares closing price to the moving average
- MACDMACD (Moving Average Convergence Divergence) is a powerful refinement of the two moving averages system, providing reliable signals of trend changes.
- MACD HistogramThe MACD Histogram (Moving Average Convergence Divergence Histogram) provides far earlier and more responsive signals than the original MACD. Unfortunately it is also more volatile.
- Commodity Channel Index
- Trend Indicators
- Aroon Oscillatorushar Chande's Aroon Oscillator identifies new trends
- Coppock IndicatorEdwin Coppock designed this oscillator with one sole purpose: to identify the commencement of bull markets.
- Directional MovementA sophisticated indicator by Welles Wilder, Directional Movement is one of few indicators that signals whether a trend is suitable to trade.
- Donchian ChannelsRichard Donchian's Donchian Channels identify new trends
- KST IndicatorMartin Pring's KST Indicator identifies major trend changes
- Linear Regression IndicatorThe Linear Regression Indicator reacts faster than a moving average to trend changes
- Moving AverageThe Moving Average is a powerful measure of trend direction, achieved by smoothing price data. Moving Averages can also be used on median,typical and weighted closing prices as well as other indicators.
- Multiple Moving AveragesDaryl Guppy uses multiple moving averages to measure trends and identify likely reversals. The indicator compares multiple short-term and long-term exponential moving averages.
- Parabolic SARDeveloped by J. Welles Wilder, the Parabolic SAR indicator provides excellent entry and exit points in trending markets.
- Rainbow 3D Moving AveragesIvan Ballin's variation of Daryl Guppy's Multiple Moving Averages.
- Momentum Oscillators
- Bollinger %bJohn Bollinger's Bollinger %b and Band Width highlight suitable entry and exit points in a trend
- Elder Ray IndexDeveloped by Dr Alexander Elder, the Elder-ray indicator measures buying and selling pressure in the market. The Elder-ray is often used as part of the Triple Screen trading system.
- Mass IndexDonald Dorsey predicts trend reversals by comparing trading range over a 9 day period.
- MomentumMomentum measures trend strength and identifies likely reversal points. A simple but effective measure of rate of change of prices.
- Negative VolumeNorman Fosback uses Negative Volume Index (NVI) with Positive Volume Index (PVI) to identify bull markets.
- Positive VolumeIntroduced by Norman Fosback, Positive Volume Index identifies bull and bear markets by measuring activity on days when volume is higher.
- Rate Of Change (Price)A refinement of Momentum - Rate of Change is designed to fluctuate as a percentage around the zero line.
- Relative Strength Index (RSI)A very popular momentum oscillator developed by Welles Wilder, RSI (Relative Strength Index) compares upward and downward movements in closing price.
- Slow StochasticThe Slow Stochastic provides more reliable signals than the original indicator. It applies further smoothing to reduce volatility and improve accuracy.
- Smoothed Rate of Change (SROC)Smoothed Rate of Change (SROC) was first introduced by Fred G Schutzman in Futures magazine, April 1991. The oscillator performs a similar function to the Momentum and Rate Of Change indicators.
- Stochastic IndicatorDeveloped by George Lane to track market momentum, the stochastic oscillator comprises two lines: %K and %D.
- TRIX IndicatorDesigned for trading trends, TRIX uses a triple-smoothed moving average to eliminate cycles shorter than the indicator period.
- Twiggs Momentum OscillatorTwiggs Momentum Oscillator is a smoothed version of the Rate Of Change oscillator, its primary purpose is to identify fast trending stocks.
- Vertical Horizontal Filter (VHF)Created by Adam White, Vertical Horizontal Filter (VHF) identifies trending and ranging markets.
- Williams %RWilliams %R is similar to Stochastic %K - except that Williams %R is plotted using negative values.
- Williams Accumulate DistributeLarry Williams highlights accumulation and distribution by comparing daily trading ranges. Signals are taken on divergences.
- Bollinger %b
- Money Flow
- Accumulation DistributionMeasures the commitment of bulls and bears, giving advance warning of trend changes.
- Chaikin Money FlowAnother popular indicator by Marc Chaikin based on the Accumulation Distribution line.The Chaikin Money Flow indicator often warns of breakouts and provides useful trend confirmation.
- Chaikin OscillatorMarc Chaikin's chaikin oscillator monitors the flow of money in and out of the market.
- Ease of MovementDeveloped by Richard W Arms, this powerful indicator highlights the relationship between price and volume.
- Equivolume ChartsThe greatest advance in the last decade, equivolume exposes price and volume interaction.
- Force IndexDeveloped by Dr Alexander Elder, the Force index combines price movements and volume to measure the strength of bulls and bears in the market.
- Money Flow IndexMoney Flow Index measures trend strength and warns of likely reversal points.
- On Balance VolumeDeveloped by Joseph Granville, OBV provides a powerful measure of accumulation and distribution by comparing volume to price movements.
- Price Volume TrendMeasures the strength of trends and warns of reversals...
- Twiggs Money FlowTwiggs Money Flow is Colin Twiggs' derivation of the popular Chaikin Money Flow indicator.
- Williams Accumulation DistributionWilliams Accumulation Distribution is traded on divergences. When price makes a new high and the indicator fails to exceed its previous high, distribution is taking place.
- Accumulation Distribution
- Volume Indicators
- VolumeVolume highlights unusual trading activity and provide powerful confirmation of price signals.
- Rate of Change (Volume)The rate of change formula can also be applied to volume, where it highlights changes in volume activity.
- Volume OscillatorAn easy to use oscillator that highlights changes in volume activity.
- Volume
- Volatility Indicators
- Average True RangeWelles Wilder developed Average True Range to measure commitment in a trending market.
- Bollinger BandsInvented by John Bollinger, the bands offer powerful support for signals from trend or momentum indicators. Bollinger Bands are calculated at a specified number of standard deviations above and below the moving average, causing them to widen when prices are volatile and contract when prices are stable.
- Chaikin VolatilityDeveloped by Marc Chaikin, volatility is measured as the range between high and low prices.
- True RangeWelles Wilder's True Range calculation
- VolatilityVolatility is a statistical measure called the coefficient of variation.
- Volatility RatioThis ratio is similar to that used by Jack Schwager in his book Schwager on Futures: Technical Analysis to identify wide-ranging days.
- Average True Range
- Indicator Basics
