Indicators
/ Oscillators
A technical indicator
is a method of chart analysis, usually of
price over time or volume, using various formulae
designed to highlight specific characteristics
and provide signals to help forecast market
movements. Indicators can also be derived
from the use of trendlines and price patterns,
which are not based on formulae and are more
subjective.
As markets, securities,
and commodities flucuates, prices tend to
over compensate, either by moving too high
or too low. Oscillators are derived from these
price movements. They are particularily handy
in determining trading ranges or trend reversals.
Indicators and oscillators are charted in
a separate window typically displayed below
the price chart.
|
|
Advance-Decline Line |
Market
breadth indicator, providing a very good measure
of overall market strength. |
|
Accumulative Swing Index (ASI) |
Is a swing or wave system used
to capitalize on breakout patterns. ASI is commonly
used to confirm trendline breakouts on price
charts. |
|
Arms Index (TRIN) |
Short term breadth indicator showing
whether volume is flowing into advancing or
declining issues. |
|
Average True Range |
Volatility indicator |
|
BETA |
Beta is a risk measure comparing
the volatility of a stock's price movement to
the general market. |
|
Commodity Channel Index |
CCI is an oscillator that provides
an indication of overbought or oversold markets. |
|
Demand Index |
Incorporates price and volume
to give a ratio of buying pressure to selling
pressure. |
|
ADX Directional Movement Index |
Indicates when a trend is present
and the overall strength of a market. |
|
Mass Index |
Range oscillator that uses changes
in daily trading price and provides unique market
reversal forecasts that other indicators may
miss |
|
MACD |
MACD is a trend following momentum
indicator used to signal trend changes and to
indicate trend direction. Signals are generated
by crossovers and divergence from price. |
|
MACD Histogram |
The MACD Histogram is useful for
anticipating changes in trend. |
|
|
A short to mid-term leading
indicator, based on a market Index (NYSE, etc),
showing overbought and oversold markets and
providing a valuable timing tool. |
|
|
A short to mid-term leading
indicator, based on a market Index (NYSE, etc),
showing overbought and oversold markets and
providing a valuable timing tool. |
|
Money Flow Index |
A divergence between the Money
Flow Index and price trend can warn of a possible
trend reversal. |
|
Momentum |
Momentum measures the speed of
price change and provides a leading indicator
of changes in trend. |
|
On Balance Volume |
Can be used to either confirm
the current price trend or warn of a possible
reversal. |
|
Price and Volume trend |
(PVT) is a cumulative total of
volume adjusted according to relative changes
in closing prices. It is similar to On Balance
Volume (OBV). |
|
Range Expansion Index (REI) |
An arithmetically calculated market-timing
oscillator designed to overcome problems with
exponentially calculated oscillators. |
|
Rate of Change |
Momentum indicator that measures
velocity and also leads the price action. |
|
Relative Strength Index |
(RSI) can provide an early warning
of an opportunity to buy or sell. |
|
Standard Deviation |
A statistical concept, provides
a reliable measure of volatility. |
|
Stochastic Oscillator |
Can help determine when a market
is overbought or oversold. |
|
Swing Index |
Momentum indicator is used primarily
as a component of the Accumulative Swing Index. |
|
TRIX - Triple Exponential Smoothing
Oscillator |
As a momentum indicator, this
oscillator is based on smoothed moving averages
and their momentum to avoid insignificant daily
price movements and to aid timing. |
|
Ultimate Oscillator |
Sensitive to buying and selling pressure and
offers reliable signals. |
|
Upside/Downside |
Measures of Upside/Downside separate the volumes
for rising markets from those in falling markets.
Since volume is independent of price, it makes
a valuable tool for measuring the quality of
a price trend. |
|
Volume |
The number of shares or contracts traded during
a given time frame. The time frame is usually
one day, but can also be a week. |
|
Volume Accumulation Oscillator
(Chaikin Oscillator) |
Volume analysis is important for identifying
internal strengths and weaknesses in a market.
Very often, a divergence between volume and
price movements can offer clues to an impending
reversal. |
|
William's Accumulation-Distribution |
Tracks the buying pressure and selling pressure. |
|
William's % R |
Williams %R has proven very useful for anticipating
market reversals. |