Indicators are useful tools to help traders measure trend direction, strength, volatility. Is the volume supporting the trend? You can know with indicators.
The smart money flow index or smart money index is an indicator. It measures the sentiment of the investors in the market. The smart money flow index or smart money index is an indicator. It measures the sentiment of the investors in the market. Don Hays, a money...
The Klinger volume oscillator is a volume-based indicator.It identifies long-term trends of money flow of a particular security. The Klinger volume oscillator is a volume-based indicator that functions to identify long-term trends of money flow of a particular...
The True Strength Index (TSI) is a very popular and widely used momentum oscillator.It helps traders determine the trend and overbought/oversold market conditions. True Strength Index (TSI) is a very popular and widely used momentum oscillator that helps to determine...
An envelope refers to two lines plotted above and below a security's price.It is drawn by drawing a Simple Moving Average and 2 SMA around it at a fixed distance. The Envelope or envelope channel indicator is a technical analysis tool. It helps to spot the upper and...
Historical Volatility is a measure of movements of prices over a specified period of time.It deals with measuring the level of price fluctuations of stock prices from its average price over a specified period of time.It helps trader quantify how volatile a stock is...
The Ulcer Index indicator is a technical analysis tool that measures the downside risk considering both main factors, the depth and the duration of price fall.It is a 3-step calculation. The Ulcer Index (UI) indicator bases on the idea of Ulcer disease. An ulcer is...
The advance/decline (A/D) line is a breadth indicator that plots the difference between advancing stocks and declining stocks.A/D line should move in the same direction as major indexes to confirm the move.If it doesn't, it's a sign the rally or decline is nearing its...
Both the Bollinger Bands Width and the Bollinger Bands %B are indicators based on the Bollinger Bands.The Bollinger Bands Width indicator shows the width of the bands (how wide they are at any moment).The Bollinger Bands %B indicator shows the relative position of the...
The Triple Exponential Moving Average (TRIX) helps investors determine the price momentum and identify oversold and overbought signals in a financial asset.It is composed of 3 main components: Zero line, TRIX line, Percentage Scale What is the TRIX Indicator? The...
The Chaikin oscillator measures the Accumulation/Distribution Line of MACD.A cross above the ADL indicates that investors are accumulating (buying). Price follows volume, based on an old investing axiom. When traders buy a large number of shares of a stock that appear...
The Hull moving average indicator or HMA indicator helps to identify the current trend in the market.It is an extremely fast and smooth moving average. The Hull moving average indicator or HMA indicator helps to identify the current trend in the market. Allan Hill...
The Schaff Trend Cycle (STC) indicator is an oscillator.It helps to identify the market trends with improved speed and accuracy. The Schaff Trend Cycle (STC) indicator is an oscillator indicator that helps to identify the market trends with improved speed and...
Implied volatility (IV) is a measure that helps traders to understand the chances of changes in the prices of a given security.In options, IV is the underlying instrument’s volatility. Implied Volatility? What is it? Implied volatility (IV) is a measure that helps...
Divergences occur in the market when price doesn't move in the same way as an indicator.If price makes a new high/low but the indicator does not, it creates a divergence.It helps traders spot moments where price move is not a strong/weak as it looks to be.It is a...
Trendlines connect two price points at least and may extend further forward to indicate support and resistance areas.It helps traders understand the trend and possible reversals. Trendlines are an indicator that helps to identify and confirm trends. It is a simple but...
The Chande Kroll Stop indicator is made of two lines.It automatically allows placement of protective stops based on both upward and downward volatility. Tushar Chande and Stanley Kroll suggested the Chande Kroll Stop indicator in their book “The New Technical Trader”....
![Volume Price Trend Indicator: Full Guide [2020]](https://i1.wp.com/patternswizard.com/wp-content/uploads/2020/08/pricevolumetrend.png?resize=1080%2C675&ssl=1)
The Volume Price Trend is a volume momentum indicator.It makes use of both percentage changes in price and volume. It uses them to confirm the strength of the trend in price. The volume price indicator adds or subtracts multiples of a percentage change in recent stock...
The Williams Fractal indicator detects patterns known as fractals.The fractals are made of five or more bars.It helps traders spot potential bullish and bearish price reversals. Traders are integrating new methods into their market analysis to get an edge. This...
The Williams Alligator indicator is composed of 3 lines. Each line is a Moving Average is a different period (5-8-13).It helps traders understand the market trend and potential reversal. When the fastest line is above the middle one which is above the slow one, trend...
The Commodity Channel Index is a momentum-based indicator.It helps traders determine when an investment vehicle gets to a condition of being overbought or oversold.This information makes it possible for traders to know if they want to enter or leave a trade. The...
The Relative Vigor Index indicator is an oscillator.It measures the strength behind a price move.It compares the end price range and offers a reading of the strength of price movement up or down. The Relative Vigor Index compares the end price range and offers a...
The Ultimate Oscillator is a momentum indicator.It integrates three various times within one value.It directs traders on how to better time their entry and exits in the market. The ultimate oscillator is a momentum indicator. It grabs momentum across three...
The Volume Oscillator identifies the trend in volumes with a system of two Exponential Moving Averages..The Volume Oscillator is made up of two moving averages of volume, one fast and the other slow.The moving average of the fast volume is subtracted from the moving...
The Mass Index indicator helps traders determine trend reversals.It examines the difference between low and high prices in a security over a period.It calculates with the exponential moving average (EMA) of price over a nine-days period and the exponential moving...
The Pivot Point indicator automatically draws potential resistance/support levels.It make use of the high, low, and close of the previous period to estimate future support/resistance levels. Pivot points are important levels chartists that traders use to detect...
The Keltner Channel is a volatility based indicator.It indicates whether the market's trend is likely to continue or it may change direction.It is generally built with a 20-period EMA as the center line and two lines above at a 2 Average True Range distance. The...
Moving Average Crossover signals a trend reversal.The most popular one is between the 50-MA & 200-MA.The bullish cross is the golden cross and the bearish cross is the death cross. What are the Moving Average Crossovers? Moving Average (MA) Crossover indicator...
The Ichimoku Cloud is composed of five lines. The include a:nine-period average, 26-period average, average of those two averages, 52-period average, and a lagging closing price line.The Cloud is a key part of the indicator. When price is below the cloud the trend is...
The Coppock Curve indicatoris a momentum indicator.It helps to identify long-term trading opportunities in the stock market.The Zero-Line functions as a trade-trigger. It gives the buying signal when the Coppock Curve is above zero and selling signals when the Coppock...
The Choppiness Index indicator is a volatility indicator.It determines whether the market is following a trend or the market is choppy and trading sideways. The Choppiness Index indicator is a volatility indicator that determines whether the market is following a...
The Balance of Power indicator measures the strength of buyers in the market against sellers.It does so by assessing how able each side are to drive prices to an extreme level. Balance of Power = (Close price – Open price) / (High price – Low price)The result can be...
The Average Directional Index is built on top of the Directional Movement Index.When ADX > 25, the trend is considered to be strong.When ADX < 20, the trend is considered weak or trendless. What is the Average Directional Index (ADX)? Average Directional...
The Directional Movement Index (DMI) is composed of 2+1 linesThe -DI line shows the selling pressure (-DI),The +DI line shows the buying pressure And the DX line shows the difference between the two othersWhen +DI is above -DI, it means the price is mainly having...
The Money Flow Index (MFI) indicator is a momentum indicator.When MFI is above 80, the market is considered overbought.When MFI is below 20, the market is considered oversold.The indicator value can be used on its own, but it also can be used when it draws in...
Volume Profile shows the price where the security was most traded.It takes a given range for computation (either visible or fixed).The more volume traded at a given price, the bigger the Volume Profile bar will be. What is the Volume Profile indicator? Volume Profile...
The legendary chartist, Bill Williams created the Awesome Oscillator indicator. He showed it as the best momentum indicator that is as simple as it is elegant. Traders use it to determine the momentum of the asset at hand in the course of recent events within the...
The Parabolic SAR indicator helps traders spot trend direction and potential reversals.It appears on charts as a series of dots/cross above (when price is going down) or below (when price is going up) security’s price.It’s mainly used as a trailing stop. What is the...
The Williams %R indicator oscillates between 0 and -100.When its value is above -20, it sends an overbought signal.When its value is below -80, it sends an oversold signal.Overbought and oversold signals are clues the price is reaching extremes. What is the Williams...
John Bollinger created the technique of using a moving average with two trading bands below and above it. He introduced this technique in the 1980s and he trademarked this term in 2011. Bollinger was a long-time technician of the markets. Previously, it was known as...
Ease of movement (EMV) momentum indicator shows the link between the rate of change in the price of an asset and its volume. It is best to use it for the daily chart and longer timeframes. Just as its name implies, the bigger the magnitude of the indicator, the easier...
![Stochastic RSI indicator: Full Guide [2020]](https://i0.wp.com/patternswizard.com/wp-content/uploads/2020/07/stochrsi.png?resize=1080%2C675&ssl=1)
The oscillator helps trader take advantage of both momentum indicators to make another indicator. The new indicator is more sensitive and synchronises well to the historical performance of a particular security. It doesn’t generalized analysis of price variation. In...
The Zig Zag indicator helps traders reduce market noise. It highlights underlying trends with its higher highs or lower lows.The indicator works best in strongly trending markets. What is the Zig Zag indicator? The Zig Zag indicator is a very well-known tool by...
If you have an interest in financial trading, you must have knowledge of two concepts, moving averages and volume. Moving averages is one of the most common and widely used indicators in the financial trading world. Volume is also another important concept that is...
There are various technical indicators that have made the analysis of the financial markets remarkably easy. Some of them work with the objective of finding momentum. Others aim to find potential points of interest on a chart. But what is the most important aspect of...
![Rate of Change Indicator: Complete Guide [2020]](https://i2.wp.com/patternswizard.com/wp-content/uploads/2020/07/rateofchange.png?resize=1080%2C675&ssl=1)
The Rate of Change (RoC) indicator is an unbounded momentum oscillator.Three main states are possible:A rising RoC above zero typically confirms an uptrend A falling RoC below zero indicates a downtrendA RoC hovering near zero hints for consolidation What is the ROC...
![McGinley Dynamic Indicator: Full Guide [2020]](https://i2.wp.com/patternswizard.com/wp-content/uploads/2020/07/mcginleydynamic.png?resize=1080%2C675&ssl=1)
The Mcginley Dynamic indicator is an indicator that is based on moving average line indicator with a soothing mechanism. Its soothing mechanism is so effective that it tracks prices far better than any other indicator. There is an inherent problem in all moving...
The Know Sure Thing indicator, or KST, is a momentum oscillator.It takes into account four time periods (and not a single one as other indicators).It gives traders a bullish or bearish biais. The Know Sure Thing (KST) indicator that gives bullish and bearish...
The Fisher Transform indicator is an oscillator that helps traders to satisfactorily identify significant trend reversal. It identifies trend reversals through normalization of prices over a predefined number of periods by the users. It also helps to visualize the...
The Donchian Channel indicator is an intraday trend following indicator that allows you to identify trends. As we all know that trade breakouts is a popular trend following strategy. Breakouts can be conveniently measured through the lowest low and highest high. It...
Average True Range (ATR) indicator is one of the most influential technical analysis tools that track volatility in a predefined period of time. Unlike most of the indicators, ATR does not identify trends and only focuses on measuring volatility in a particular...
The OBV (On Balance Volume) technical indicator uses volume to indicate momentum.The OBV indicator shows crowd sentiment and help traders predict a bullish or bearish outcome.It's mainly useful when in divergence with price as it shows unexpected strength or...
Created by Marc Chaikin, this Chaikin Money Flow indicator measures the amount of money flow volume over a particular time. Money flow volume is the basis for the accumulation/distribution Line. Rather than having a cumulative total, Chaikin money flow combines money...
The Aroon indicator is composed of two line:An up line which measures how far is the previous highA down line wich measures how far is the previous lowWhen AroonUp is above AroonDown, it gives a bullish biais.When AroonUp is below AroonDown, it gives a bearish biais....
A SMA (Simple Moving Average) indicator calculates the average of prices for a given number of periods.The SMA is used alone (for its slope) or with others MAs (for the crossing). What is the Moving Average indicator? In technical analysis, the moving average is an...
The accumulation distribution indicator (ADL) is a volume-measurement kind of indicator. It was created by a well-known trader and analyst, Marc Chaikin, as a stock selection tool. He has subsequently found broader application as a leading indicator for other markets,...
Traders use momentum indicators to have a better understanding of the speed or rate at which the price of a security changes. Momentum indicators are best used with other indicators and tools because they don’t work to detect the direction of movement, only the...
![MACD Indicator: The Ultimate Guide [2020]](https://i2.wp.com/patternswizard.com/wp-content/uploads/2020/06/MACD.png?resize=1080%2C675&ssl=1)
The Moving Average Convergence Divergence (MACD) is both a momentum and trend following indicator.It is calculated by subtracting the 26-period EMA (Exponential Moving Average) from the 12-period EMA.There are several ways to read it:When the lines crossWhen the...
![Stochastic Oscillator: Full Trading Guide [2020]](https://i1.wp.com/patternswizard.com/wp-content/uploads/2020/06/Stochastic.png?resize=1080%2C675&ssl=1)
The stochastic oscillator is a popular momentum technical indicator.It gives traders overbought and oversold signals. What is the Stochastic indicator? The Stochastic Oscillator is a momentum indicator A stochastic oscillator is a momentum indicator that compares a...
The RSI (Relative Strength Index) indicator is a popular momentum oscillator.It provides traders with bullish and bearish price momentum signal.When the RSI is above 70%, it's considered overbought; when it's below 30%, it's considered oversold. What is the Relative...