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  • Indicator Guide
    •  Indicator Basics
      • Using Indicators
        Most indicators highlight a particular aspect of price or volume behavior.
      • Favorite Indicators
        Charting indicators that I find most useful.
      • Indicator Signals
        Respect, whipsaws, divergence, and failure swings.
      • Indicator Time Frames
        A key principle when using indicators: set the time frame to reflect the cycle being traded...
      • Fibonacci Numbers
        Fibonacci numbers are named after Leonardo Fibonacci, a twelfth century Italian mathematician, who discovered the unique properties of a particular number sequence.
      • Linear Regression
        Linear regression fits a straight line to the selected data using a method called the Sum Of Least Squares. The Sum Of Least Squares ...
    •  Compare Stocks/Indices
      • Compare Prices
        Incredible Charts offers several options for comparing stock and/or index prices
      • Price Comparison
        A potent stock selection tool, Price Comparison charts the performance of a stock against an index or a related stock.
      • Price Differential
        Compare bond yields or interest rates that share the same price axis.
      • Price Ratio
        A 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
    •  Moving Average Types
      • Moving Average
        The 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 Average
        Simple moving averages are easy to construct, but prone to distortion.
      • Exponential Moving Average
        Exponential moving averages achieve the benefits of weighted moving averages combined with ease of construction.
      • Weighted Moving Average
        Weighted moving averages are difficult to construct, but reliable.
      • Wilder Moving Average
        Wilder 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 Filters
        Moving average systems normally employ filters to reduce whipsaws.
      • Moving Average High/Low/Open
        A 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 Average
        When tracking the primary trend you are faced with a wide choice of moving averages.
    •  Moving Average Systems
      • Two Moving Averages
        Fast and slow moving averages provide a powerful measure of trend strength and direction.
      • Three Moving Averages
        A more sophisticated system that uses a third moving average to identify ranging markets.
      • Multiple Moving Averages
        Daryl 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 Averages
        Ivan Ballin's variation of Daryl Guppy's Multiple Moving Averages.
      • Price Envelope
        Sometimes referred to as Percentage Bands, price envelopes are plotted at a set percentage above and below a moving average.
      • Keltner Channels
        Chester Keltner's trend-following system uses bands plotted at a multiple of average true range to filter moving average crossovers.
    •  Moving Average Oscillators
      • Commodity Channel Index
        The Commodity Channel Index (CCI) highlights overbought and oversold markets and likely turning points.
      • Detrended Price Oscillator
        This immensely powerful indicator isolates the short cycle and provides excellent trend signals.
      • MA Oscillator
        George Topalides' Moving Average Oscillator compares closing price to the moving average
      • MACD
        MACD (Moving Average Convergence Divergence) is a powerful refinement of the two moving averages system, providing reliable signals of trend changes.
      • MACD Histogram
        The MACD Histogram (Moving Average Convergence Divergence Histogram) provides far earlier and more responsive signals than the original MACD. Unfortunately it is also more volatile.
    •  Trend Indicators
      • Aroon Oscillator
        ushar Chande's Aroon Oscillator identifies new trends
      • Coppock Indicator
        Edwin Coppock designed this oscillator with one sole purpose: to identify the commencement of bull markets.
      • Directional Movement
        A sophisticated indicator by Welles Wilder, Directional Movement is one of few indicators that signals whether a trend is suitable to trade.
      • Donchian Channels
        Richard Donchian's Donchian Channels identify new trends
      • KST Indicator
        Martin Pring's KST Indicator identifies major trend changes
      • Linear Regression Indicator
        The Linear Regression Indicator reacts faster than a moving average to trend changes
      • Moving Average
        The 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 Averages
        Daryl 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 SAR
        Developed by J. Welles Wilder, the Parabolic SAR indicator provides excellent entry and exit points in trending markets.
      • Rainbow 3D Moving Averages
        Ivan Ballin's variation of Daryl Guppy's Multiple Moving Averages.
    •  Momentum Oscillators
      • Bollinger %b
        John Bollinger's Bollinger %b and Band Width highlight suitable entry and exit points in a trend
      • Elder Ray Index
        Developed 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 Index
        Donald Dorsey predicts trend reversals by comparing trading range over a 9 day period.
      • Momentum
        Momentum measures trend strength and identifies likely reversal points. A simple but effective measure of rate of change of prices.
      • Negative Volume
        Norman Fosback uses Negative Volume Index (NVI) with Positive Volume Index (PVI) to identify bull markets.
      • Positive Volume
        Introduced 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 Stochastic
        The 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 Indicator
        Developed by George Lane to track market momentum, the stochastic oscillator comprises two lines: %K and %D.
      • TRIX Indicator
        Designed for trading trends, TRIX uses a triple-smoothed moving average to eliminate cycles shorter than the indicator period.
      • Twiggs Momentum Oscillator
        Twiggs 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 %R
        Williams %R is similar to Stochastic %K - except that Williams %R is plotted using negative values.
      • Williams Accumulate Distribute
        Larry Williams highlights accumulation and distribution by comparing daily trading ranges. Signals are taken on divergences.
    •  Money Flow
      • Accumulation Distribution
        Measures the commitment of bulls and bears, giving advance warning of trend changes.
      • Chaikin Money Flow
        Another 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 Oscillator
        Marc Chaikin's chaikin oscillator monitors the flow of money in and out of the market.
      • Ease of Movement
        Developed by Richard W Arms, this powerful indicator highlights the relationship between price and volume.
      • Equivolume Charts
        The greatest advance in the last decade, equivolume exposes price and volume interaction.
      • Force Index
        Developed 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 Index
        Money Flow Index measures trend strength and warns of likely reversal points.
      • On Balance Volume
        Developed by Joseph Granville, OBV provides a powerful measure of accumulation and distribution by comparing volume to price movements.
      • Price Volume Trend
        Measures the strength of trends and warns of reversals...
      • Twiggs Money Flow
        Twiggs Money Flow is Colin Twiggs' derivation of the popular Chaikin Money Flow indicator.
      • Williams Accumulation Distribution
        Williams 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.
    •  Volume Indicators
      • Volume
        Volume 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 Oscillator
        An easy to use oscillator that highlights changes in volume activity.
    •  Volatility Indicators
      • Average True Range
        Welles Wilder developed Average True Range to measure commitment in a trending market.
      • Bollinger Bands
        Invented 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 Volatility
        Developed by Marc Chaikin, volatility is measured as the range between high and low prices.
      • True Range
        Welles Wilder's True Range calculation
      • Volatility
        Volatility is a statistical measure called the coefficient of variation.
      • Volatility Ratio
        This ratio is similar to that used by Jack Schwager in his book Schwager on Futures: Technical Analysis to identify wide-ranging days.





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