WEIGHTED MOVING AVERAGE (WMA)
Definition Moving Average (MA) is a price based, lagging (or reactive) indicator that displays the average price of a security over a set period of time. A Moving Average is a good way to gauge momentum as well as to confirm trends, and define areas of support and resistance. Essentially, Moving […]
SIMPLE MOVING AVERAGE (SMA)
Definition SIMPLE MOVING AVERAGE (SMA) Moving Average (MA) is a price based, lagging (or reactive) indicator that displays the average price of a security over a set period of time. A Moving Average is a good way to gauge momentum as well as to confirm trends, and define areas of support […]
Kaufman’s Adaptive Moving Average (KAMA)
Kaufman’s Adaptive Moving Average (KAMA) Kaufman’s Adaptive Moving Average (KAMA) is an intelligent moving average that was developed by Perry Kaufman. The powerful trend-following indicator is based on the Exponential Moving Average (EMA) and is responsive to both trend and volatility. It closely follows price when noise is low and smooths out […]
Smoothed Moving Average (SMMA)
Smoothed Moving Average (SMMA) The Smoothed Moving Average (SMMA) is similar to the Simple Moving Average (SMA), in that it aims to reduce noise rather than reduce lag. The indicator takes all prices into account and uses a long lookback period. Old prices are never removed from the calculation, but they […]
VARIABLE INDEX DYNAMIC AVERAGE (VIDYA)
VARIABLE INDEX DYNAMIC AVERAGE (VIDYA) he Variable Index Dynamic Average (VIDYA) was developed by Tushar Chande. The calculation of this indicator is analogous to that of the Exponential Moving Average (EMA) with a dynamically adjusted look back period that depends on relative price volatility. The higher the volatility, the higher the […]
HULL MOVING AVERAGE (HMA)
The Hull Moving Average (HMA) was developed by Alan Hull for the purpose of reducing lag, increasing responsiveness while at the same time eliminating noise. Its calculation is elaborate and makes use of the Weighted Moving Average (WMA). It emphasizes recent prices over older ones, resulting in a fast-acting yet smooth […]
Volume Weighted Moving Average (VWMA)
Volume Weighted Moving Average (VWMA) The Volume-weighted Moving Average (VWMA) emphasizes volume by weighing prices based on the amount of trading activity in a given period of time. Users can set the length, the source and an offset. Prices with heavy trading activity get more weight than prices with light […]
FRACTAL ADAPTIVE MOVING AVERAGE (FRAMA)
he Fractal Adaptive Moving Average (FRAMA) is an intelligent, adaptive moving average that was developed by John Ehlers. It takes the importance of price changes into account and follows price closely with significant moves while remaining flat if price ranges. The FRAMA takes advantage of the fact that markets are […]
DOUBLE EXPONENTIAL MOVING AVERAGE (DEMA)
The Double Exponential Moving Average (DEMA) was developed by Patrick Mulloy for the purpose of reducing lag and increasing responsiveness. This fast-acting moving average allows traders to spot trend reversals quickly, resulting in better entries into newly formed trends. The indicator is obviously based on the Exponential Moving Average (EMA) but […]
CHAIKIN VOLATILITY
Chaikin Volatility (CHV) is an indicator that was developed by Marc Chaikin. It measures volatility by looking at the price`s highs and lows in a specific time period that can be set. The exact calculation involves an Exponential Moving Average (EMA), but in general: the more the range between the highs […]
VOLATILITY STOP
The Volatility Stop indicator is a powerful technical analysis tool that plots red dots above price bars in case of a downtrend and green dots under price bars in case of an uptrend. These levels can be used as trailing stops, making this overlay suitable as a technique to time […]
HISTORICAL VOLATILITY
HISTORICAL VOLATILITY is a measure of how much price deviates from its average in a specific time period that can be set. The more price fluctuates, the higher the indicator value. Please note it does not measure the direction of price changes, just how volatile price has become. There are […]
RATE OF CHANGE (ROC)
Definition: Rate of Change (ROC) The Rate of Change indicator (ROC) is a momentum oscillator. It calculates the percent change in price between periods. ROC takes the current price and compares it to a price “n” periods (user defined) ago. The calculated value is then plotted and fluctuates above and below a Zero […]
PARABOLIC STOP AND REVERSE (PSAR)
Definition Parabolic SAR (SAR) is a time and price technical analysis tool primarily used to identify points of potential stops and reverses. In fact, the SAR in Parabolic SAR stands for “Stop and Reverse”. The indicator’s calculations create a parabola which is located below price during a Bullish Trend and above […]
DONCHIAN CHANNELS (DC)
Definition : DONCHIAN CHANNELS (DC) Definition Donchian Channels (DC) are used in technical analysis to measure a market’s volatility. It is a banded indicator, similar to Bollinger Bands %B (%B). Besides measuring a market’s volatility, Donchian Channels are primarily used to identify potential breakouts or overbought/oversold conditions when price reaches either […]
KELTNER CHANNELS (KC)
Keltner Channels (KC) Definition Keltner Channels (KC) The Keltner Channels (KC) indicator is a banded indicator similar to Bollinger Bands and Moving Average Envelopes. They consist of an Upper Envelope above a Middle Line as well as a Lower Envelope below the Middle Line. The Middle Line is a moving average of […]
Average True Range (ATR)
Definition: Average True Range (ATR) The Average True Range (ATR) is a tool used in technical analysis to measure volatility. Unlike many of today’s popular indicators, the ATR is not used to indicate the direction of price. Rather, it is a metric used solely to measure volatility, especially volatility caused by […]
BOLLINGER BANDS (BB)
Definition BOLLINGER BANDS (BB) Bollinger Bands (BB) are a widely popular technical analysis instrument created by John Bollinger in the early 1980’s. Bollinger Bands consist of a band of three lines which are plotted in relation to security prices. The line in the middle is usually a Simple Moving Average (SMA) […]
Standard Deviation
Standard Deviation is a way to measure price volatility by relating a price range to its moving average. The higher the value of the indicator, the wider the spread between price and its moving average, the more volatile the instrument and the more dispersed the price bars become. The lower […]