Colin Twiggs and his team provide free monthly updates on financial markets and the economy.
Join our Trading Diary newsletter, with more than 120,000 followers, for:
Colin Twiggs is a former investment banker with over 30 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters, focusing on the global market outlook and key macro trends.
Indicators
Technical indicators highlight a particular aspect of price or volume behavior on a stock chart to provide valuable insights and help with analysis.
Newcomers often attach great significance to their favorite indicators, but none are infallible.
The key is to keep it simple and select indicators that complement each other and are suited to current market conditions.
Indicators A to Z A reference guide of the indicators available with the Incredible Charts software.
How to Trade Divergences and other Important Indicator Signals Always be on the lookout for price respecting a moving average, divergences between price action and momentum oscillators, and failure swings. These often give early warning of an impending change.
How to Compare Stocks The new browser version includes a comparison tool to compare multiple stocks on a percentage axis.
MACD The MACD indicator is primarily used to trade trends and should not be used in a ranging market.
Relative Strength Index (RSI) The Relative Strength Index (RSI) Indicator is a popular momentum oscillator that compares upward and downward movements in closing price.
Bollinger Bands® Bollinger Bands indicate overbought and oversold levels relative to a moving average.
Twiggs® Money Flow Twiggs Money Flow warns of breakouts and provides useful trend confirmation.
Twiggs® Momentum Twiggs Momentum Oscillator is a new momentum indicator developed for Incredible Charts. A smoothed version of the Rate Of Change oscillator, its primary purpose is to identify fast trending stocks using the stock screener.
ATR Trailing Stop Loss ATR Trailing Stops are primarily used to protect capital and lock in profits on individual trades.
Moving Average Moving averages provide an objective measure of trend direction by smoothing price data.
Types of Indicators
Momentum Momentum Indicators are used to measure the fluctuation between overbought and oversold levels.
Trend Trend indicators measure trend direction. Moving averages, Directional Movement and MACD are three of the most popular trend indicators.
Money Flow Money Flow measures buying and selling pressure and warns of trend reversals.
Trailing Stops such as ATR Stops, Chandelier Exits and Parabolic SAR are used to exit from a trend and lock in profits.
Volatility Along with volume, volatility can be used to confirm price behavior.
Volume Volume indicators are used to confirm the strength of trends.
Twiggs Proprietary Designed by Colin Twiggs to highlight key aspects of buyer/seller sentiment or enthusiasm.
