Trend indicators help traders measure the direction of the trend. They are important tools to differentiate up/down trending markets from ranging markets.
The Stoller Average Range Channels (STARC) Bands helps traders know when to buy and sell.When market is in uptrend, the STARC bands suggest to buy near the lower band and selling near the upper band.When market is in downtrend, the STARC bands suggest the opposite....
The Rainbow Oscillator is a trend following indicator.It uses multiple moving averages to hint for trend reversal. The Rainbow Oscillator indicator helps to predict the changes in the market trend and to follow trends. It offers only two possible states, the upward...
The Detrended Price Oscillator (DPO) helps to eliminate the long-term trends in prices.To do so, it measures distance between extreme highs and lows. Gerald Appel developed the Detrended Price Oscillator (DPO). It is a technical analysis tool that helps to eliminate...
The Rainbow Charts indicator is a technical analysis tool that follows trend.It helps traders buy when the price is low and sell when the price is high. The Rainbow Charts indicator is a technical analysis tool that follows trend. It helps traders to visualize a full...
The Gator Oscillator helps to observe the degree of convergence/divergence of the balance lines.It's supplementary tool of the Alligator Oscillator. The Gator Oscillator (GO) is a technical analysis tool that helps to observe the degree of convergence/divergence of...
The Polarized Fractal Efficiency (PFE) indicator helps determine the price efficiency.It determines the strength and direction of the trend. What is the Polarized Fractal Efficiency indicator? The Polarized Fractal Efficiency (PFE) indicator is a technical...
The Gann HiLo indicator helps traders determine the direction of the trends.It is built of a moving average. The Gann HiLo Activator is a technical analysis tool that follows trends in the market. Robert Krausz developed the Gann HiLo indicator to help traders to...
Relative Momentum Index (RMI) indicator tries to improve the reading of the RSI indicator.It calculates a ratio of upwards changes to downwards changes in prices over N-period bars.It helps to determine the overall trend in the market. Roger Altman developed the...
The Trend intensity index (TII) indicator measures the strength of a trend in the market.It compares the price of the last 30 days to the 60-day moving average. M.H. Pee developed the Trend intensity index (TII) indicator to measure the strength of a trend in the...
The Arnaud Legoux moving average (ALMA) indicator filters out noise from the market to help the trend stand out.It uses Moving Averages to filter minor variations from the price. Arnaud Legoux moving average (ALMA) indicator is a technical analysis tool that...
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...
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...
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...
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”....
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. If you're wondering where to go to chart your favorite markets and display the Williams...
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 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 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...
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. Before you keep looking down this article, you should check 2 of courses I...
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 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 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 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...
![McGinley Dynamic Indicator: Full Guide [2022]](https://patternswizard.com/wp-content/uploads/2020/07/mcginleydynamic-1080x675.png)
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 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...
![MACD Indicator: The Ultimate Guide [2022]](https://patternswizard.com/wp-content/uploads/2020/06/MACD-1080x675.png)
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...
We loved Marwood Research’s course “Candlestick Analysis For Professional Traders“. Do you want to follow a great video course and deep dive into 26 candlestick patterns (and compare their success rates)? Then make sure to check this course!
PS: Get 20% off with the code SAVE20
A step by step guide to help beginner and profitable traders have a full overview of all the important skills (and what to learn next 😉) to reach profitable trading ASAP.
Pre-register now and receive the candlestick patterns statistics ultimate ebook for free before anyone else!
"All you need is one pattern to make a living."
- Linda Raschke
