Technical analysis

Linear Regression Indicator is an easy-to-use technical analysis tool for creating trading channels. It works according to an advanced mathematical formula based on regression analysis. The indicator uses linear regression trend lines to plot their final values over a set number of bars, showing statistically where price should settle in relation to expected values, making it more responsive than moving …

TRIX calculates the percentage rate of change of triple exponentially smoothed moving average closing prices over any given timeframe, making it a versatile indicator that can be applied across time frames. Traders frequently look out for bullish or bearish divergences between TRIX and price to predict turning points, something typical of momentum indicators like TRIX and MACD. Trend Indicator The …

The Aroon Indicator is a momentum indicator designed to detect new trends and their reversals. Comprised of two lines called Aroon Up and Aroon Down, which show how far away from high or low the price is over 25 days. When two lines intersect, it indicates a change in trend direction is imminent. Overbought Tushar Chande first developed the Aroon …

Detrended Price Oscillator measures wider, underlying cycles in an asset’s price movements. To calculate this indicator, add its price minus one period displaced moving average (price +2 + 1 + simple moving average x periods). This indicator highlights historical peaks and troughs, helping traders to estimate buy/sell levels that match with what has been revealed through this analysis. It should …

Coppock Curve indicators can assist in recognizing long-term trend trading opportunities, and help identify how best to trade those opportunities. They can also be helpful for avoiding bad trades while staying within profitable trades. This indicator was specifically created for monthly charts, appealing to investors and position traders alike. Alternatively, weekly, daily, or intraday charts may also be attached for …

Relative Strength Index (RSI) is one of the most favored momentum indicators. It signals buy and sell opportunities by creating overbought/oversold levels; additionally it may signal chart patterns such as failure swings or centerline crossovers. Typically, an RSI indicates overbought conditions above 70 and oversold conditions below 30, but these levels can be adjusted to better reflect price movement of …

The stochastic oscillator is an increasingly popular momentum indicator used in technical analysis. You can adjust its parameters such as its period (%K and %D values) but most trading strategies use their default settings of 14 days each for both. Lane describes that the Stochastic Oscillator measures the speed of price action movement rather than its direction, and can detect …

Rate of Change (ROC) indicators can be an extremely powerful resource for investors. Securities with positive ROC indicators tend to outshone their market peers over short time horizons. The Relative Order Condition Index, or ROC, measures the difference between current price and its previous level over a given time interval. Often placed against zero, an increasing ROC indicates an uptrend …

Williams Percent Range (WPR) is an oscillating indicator designed to show when momentum has begun to decline within a trend. Like all indicators, WPR has its own set of strengths and weaknesses; practice sessions on a demo system are required in order to recognize both. This indicator is calculated utilizing the highest high and lowest low values over a 14-day …

Klinger Oscillator is a trend and momentum indicator that uses exponential moving averages (EMAs) to compare price and volume. Its two lines, Klinger and Signal, give buy/sell signals when they cross over its centerline. This indicator works effectively when used alongside other trading tools, such as chart patterns and trendlines. To maximize its use and minimize potential pitfalls, it’s crucial …