Moving Average Envelopes consist of moving averages calculated from the underling price, shifted up and down by a fixed percentage. Moving Average Envelopes (or trading bands) can be imposed over an actual price   Usage:   They are used to indicate overbought and oversold levels and can be traded on […]

Moving Average Envelopes Indicator

A simple moving average is formed by computing the average price of a instrument over a specified number of periods. Adding the closing prices for the last 5 intervals and dividing the total by 5 calculate a 5-interval simple moving average. It’s the average stock price over a period of […]

Simple Moving Average Indicator

The Parabolic Time/Price System, developed by Welles Wilder, is used to set trailing price stops and is usually referred to as the ‘SAR’ (stop-and-reversal). It is an indicator that is a very useful and accurate tool during a trending period. Parabolic SAR should only be employed in trending markets – […]

Parabolic SAR Indicator

The True Range measures market volatility. True Range is the greatest difference from the following choices: current period’s high and current period’s low. current period’s high and previous period’s close, or current period’s low and previous period’s close. High values indicate that prices are changing a large amount during the […]

True Range Indicator

TRIX is a momentum indicator that displays the percent rate-of-change of a triple exponentially smoothed moving average of the instrument’s closing price. It is designed to keep you in trends equal to or shorter than the number of periods you specify.   Usage: The TRIX indicator oscillates around a zero […]

TRIX Indicator

The Linear Regression R-Squared function determines the extent of a linear relationship of a field to time over a given period of time R-squared shows the strength of trend. The more closely prices move in a linear relationship with the passing of time, the stronger the trend.   R-squared values […]

Linear Regression R-Squared

Standard Deviation is a common statistical calculation that measures volatility. Other technical indicators are often calculated using standard deviations. Major highs and lows often accompany extreme volatility.   A measure of the dispersion of a set of data from its mean. The more spread apart the data is, the higher […]

Standard Deviation

Developed by J. Welles Wilder the Relative Strength Index (“RSI”) is a popular oscillator, which compare the internal strength of a single instrument. The RSI compares the magnitude of a instrument’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from […]

Relative Strength Index (RSI) Indicator

Fibonacci numbers are used in calculating Retracements patterns. For e.g. Many securities, after making long sustained moves in one direction, will eventually retrace a portion of the move before continuing on to extend it. The most popular Retracements amount used is 50%. Meaning, if on its latest move, a stock […]

Fibonacci Retracements

Japanese Candlestick chart are so named because the line resemble candle with their wick. Candle trading techniques have now become one of the most discussed forms of technical analysis. Candlestick Chart is the oldest type of charts used for price prediction. There are four elements necessary to construct a candlestick […]

Candle Stick Charts