Technical Indicators A ~ Z

What are Technical Indicators?

Technical indicators highlight a particular aspect of price or volume behavior on a stock chart to provide valuable insights and help with analysis.

Below is an example of a technical indicator (MACD) displayed below the NVDA stock chart.

How To Use Technical Indicators

Indicator Basics

What indicators to use and when to use them.

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.

Technical Indicators A to Z

A complete guide of the indicators available with the Incredible Charts software.

Fibonacci Numbers

Fibonacci numbers are named after Leonardo Fibonacci, a twelfth century Italian mathematician, who discovered unique properties of the 1,1,2,3,5,8.... number sequence.

Stock Market Indicators

Trend Indicators

Used to measure trend direction, moving averages are only one of many important trend indicators.

Volume Indicators

Volume indicators confirm the strength of trends and warn of reversals.

Volatility Indicators

Volatility provides additional confirmation of price behavior, along with volume.

Momentum Indicators

Momentum, Rate of Change, Relative Strength and Stochastic are the most popular oscillators. All fluctuate between overbought and oversold levels.

Compare Relative Strength

Price Comparison

A potent stock selection tool, Price Comparison charts the performance of a stock against an index or a related stock.

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.

Price or Yield Differential

Compare bond yields or interest rates that share the same price axis.

Moving Averages

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.

Selecting Long-Term Moving Averages

When tracking the primary trend you are faced with a wide choice of moving averages.

Moving Averages High/Low

A new variation on the moving average system is to calculate moving averages on the Highs or Lows, rather than on the Close.

Price Envelope

Sometimes referred to as Percentage Bands, price envelopes are plotted at a set percentage above and below a moving average.

Moving Average Systems

Single Moving Average

A simple moving average system, often combined with filters for greater effectiveness.

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.

Trading with Moving Averages

Fast and slow moving averages can provide potent market signals.

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 Multiple Moving Averages.

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.

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

Directional Movement

A sophisticated indicator by Welles Wilder, Directional Movement is one of few indicators that signals whether a trend is suitable to trade.

Parabolic SAR

Developed by J. Welles Wilder, this sophisticated indicator provides excellent entry and exit points in trending markets.

Momentum Indicators

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.

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.

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 Colin Twiggs' derivation of the Rate Of Change oscillator. Its primary purpose is to identify fast trending stocks.

Coppock Indicator

Edwin Coppock designed this oscillator with one sole purpose: to identify the commencement of bull markets.

Range Oscillators

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.

Slow Stochastic

The Slow Stochastic provides more reliable signals than the original indicator. It applies further smoothing to reduce volatility and improve accuracy.

Stochastic Indicator

Developed by George Lane to track market momentum, the stochastic oscillator comprises two lines: %K and %D.

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.

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.

Money Flow Indicators

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.

Money Flow Index

Money Flow Index measures trend strength and warns of likely reversal points.

Twiggs^® Money Flow

Twiggs Money Flow is Colin Twiggs' derivation of the popular Chaikin Money Flow indicator.

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.

Price-Volume Indicators

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.

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.

Range-Volume Indicators

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.

Range Volatility Indicators

Average True Range

Welles Wilder developed Average True Range to measure commitment in a trending market.

Chaikin Volatility

Developed by Marc Chaikin, volatility is measured as the range between high and low prices.

Volatility Ratio

The Volatility Ratio identifies days with exceptionally wide trading ranges (the distance between High and Low) and is used to signal likely reversal days.

Volatility Ratio - Schwager

This ratio is similar to that used by Jack Schwager in Technical Analysis to identify wide-ranging days.

MA Volatility Indicators

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.

Volatility

Volatility is a statistical measure called the coefficient of variation.

Indicators A ~ C Accumulation Distribution ADX Aroon Oscillator ATR Bands ATR Trailing Stops Average True Range Bollinger Bands Bollinger Band® Width Bollinger %b Candlestick Patterns Chaikin Money Flow Chaikin Oscillator Chaikin Volatility Chande Momentum Oscillator Chandelier Exits Choppiness Index Commodity Channel Index Compare Prices Coppock Indicator Indicators D ~ L Detrended Price Oscillator Directional Movement Index Displaced Moving Average Donchian Channels Ease of Movement Elder Ray Index Equivolume Charts Exponential Moving Average Fibonacci Extensions Fibonacci Retracements Force Index Heikin-Ashi Candlesticks Hull Moving Average Ichimoku Cloud Inverted Axis Keltner Channels KST Indicator Linear Regression Linear Regression Indicator Indicators M ~ N MA Oscillator MACD Indicator MACD Histogram MACD Percentage Mass Index Median Price Momentum Indicator Money Flow Index Moving Average Moving Average Filters Moving Average High/Low/Open Multiple Moving Averages Negative Volume Indicators O ~ P On Balance Volume Parabolic SAR Percentage Bands Percentage Trailing Stops Pivot Points Positive Volume Price Comparison Price Differential Price Envelope Price Ratio Price Volume Trend Indicators Q ~ U Rainbow 3D Moving Averages Rate Of Change (Price) Rate of Change (Volume) Relative Strength (Compare) Relative Strength Index (RSI) Safezone Indicator Simple Moving Average Slow Stochastic Smoothed Rate of Change (SROC) Standard Deviation Channels Stochastic Oscillator Stochastic RSI Trend Lines TRIX Indicator True Range Twiggs® Momentum Oscillator Twiggs® Money Flow Twiggs® Proprietary Indicators Twiggs® Smoothed Momentum Twiggs® Trend Index Twiggs® Volatility Typical Price Ultimate Oscillator Indicators V ~ Z Vertical Horizontal Filter (VHF) Volatility Volatility Ratio Volatility Stops Volume Volume Oscillator Weighted Close Weighted Moving Average Wilder Moving Average Williams %R Williams Accumulate Distribute Williams Accumulation Distribution	Contents > Technical Indicators > Indicators A ~ Z Technical Indicators > Technical Indicators > Indicators A ~ Z Technical Indicators A ~ Z What are Technical Indicators? Technical indicators highlight a particular aspect of price or volume behavior on a stock chart to provide valuable insights and help with analysis. Below is an example of a technical indicator (MACD) displayed below the NVDA stock chart. How To Use Technical Indicators Indicator Basics What indicators to use and when to use them. 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. Technical Indicators A to Z A complete guide of the indicators available with the Incredible Charts software. Fibonacci Numbers Fibonacci numbers are named after Leonardo Fibonacci, a twelfth century Italian mathematician, who discovered unique properties of the 1,1,2,3,5,8.... number sequence. Stock Market Indicators Trend Indicators Used to measure trend direction, moving averages are only one of many important trend indicators. Volume Indicators Volume indicators confirm the strength of trends and warn of reversals. Volatility Indicators Volatility provides additional confirmation of price behavior, along with volume. Momentum Indicators Momentum, Rate of Change, Relative Strength and Stochastic are the most popular oscillators. All fluctuate between overbought and oversold levels. Compare Relative Strength Price Comparison A potent stock selection tool, Price Comparison charts the performance of a stock against an index or a related stock. 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. Price or Yield Differential Compare bond yields or interest rates that share the same price axis. Moving Averages Moving Averages 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. Selecting Long-Term Moving Averages When tracking the primary trend you are faced with a wide choice of moving averages. Moving Averages High/Low A new variation on the moving average system is to calculate moving averages on the Highs or Lows, rather than on the Close. Price Envelope Sometimes referred to as Percentage Bands, price envelopes are plotted at a set percentage above and below a moving average. Moving Average Systems Single Moving Average A simple moving average system, often combined with filters for greater effectiveness. 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. Trading with Moving Averages Fast and slow moving averages can provide potent market signals. 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 Multiple Moving Averages. 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. 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 Directional Movement A sophisticated indicator by Welles Wilder, Directional Movement is one of few indicators that signals whether a trend is suitable to trade. Parabolic SAR Developed by J. Welles Wilder, this sophisticated indicator provides excellent entry and exit points in trending markets. Momentum Indicators 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. 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. 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 Colin Twiggs' derivation of the Rate Of Change oscillator. Its primary purpose is to identify fast trending stocks. Coppock Indicator Edwin Coppock designed this oscillator with one sole purpose: to identify the commencement of bull markets. Range Oscillators 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. Slow Stochastic The Slow Stochastic provides more reliable signals than the original indicator. It applies further smoothing to reduce volatility and improve accuracy. Stochastic Indicator Developed by George Lane to track market momentum, the stochastic oscillator comprises two lines: %K and %D. 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. 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. Money Flow Indicators 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. Money Flow Index Money Flow Index measures trend strength and warns of likely reversal points. Twiggs^® Money Flow Twiggs Money Flow is Colin Twiggs' derivation of the popular Chaikin Money Flow indicator. 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. Price-Volume Indicators 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. 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. Range-Volume Indicators 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. Range Volatility Indicators Average True Range Welles Wilder developed Average True Range to measure commitment in a trending market. Chaikin Volatility Developed by Marc Chaikin, volatility is measured as the range between high and low prices. Volatility Ratio The Volatility Ratio identifies days with exceptionally wide trading ranges (the distance between High and Low) and is used to signal likely reversal days. Volatility Ratio - Schwager This ratio is similar to that used by Jack Schwager in Technical Analysis to identify wide-ranging days. MA Volatility Indicators 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. Volatility Volatility is a statistical measure called the coefficient of variation.	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