Technical analysis

A Step by Step Guide to Combining Short Medium and Long-Term Momentum Indicators

The Ultimate Oscillator is a momentum indicator designed to reduce false trading signals after price surges such as bearish divergences where oscillator rises but prices continue their upward trajectory. By including multiple timeframes into its calculations, this approach attempts to counteract momentum indicators‘ tendency of producing false trading signals after surges such as price surges by creating less false signals …

Read More »

Money Flow Index – Identifying Market Reversals With Volume and Price Data

Algo trading

MFI differs from other technical indicators like RSI by taking both price and volume into account, providing overbought/oversold signals as well as any divergences from price that might indicate trend reversals. As shown below in a four-hour chart of GBP/USD, MFI had reached an oversold condition before price crossed over a 20 exponential moving average. Overbought The Money Flow Index …

Read More »

The Chande Momentum Oscillator – A Unique Approach to Measuring Market Strength

algorithm trading

Tushar Chande developed the Chande Momentum Oscillator as a momentum indicator based on the Relative Strength Index formula. This indicator compares recent gains to losses, and identifies overbought and oversold levels. Overbought and oversold levels often signal price reversals and provide entry signals, however an indicator which fails to breach these levels could signal a range market. How It Works …

Read More »

The Balance of Power Indicator Revealing the Secret Battle Between Buyers and Sellers

Algo Trading

Balance of Power indicators provide traders with an effective tool for recognizing price trends. They offer both bullish and bearish divergence signals. Assesses the strength of buyers and sellers by measuring how well they are at driving prices up to extreme levels, with values that typically fall between -1 and +1. It reveals the secret battle between Buyers and Sellers …

Read More »

Understanding the Force Index and Its Impact on Momentum Trading

The Force Index is a trend-following indicator that integrates price and volume data. It helps traders identify trade signals within trends as well as detect divergences. Force Indices tend to signal upward trends. Conversely, when they reach new highs they often signify the continuation of an uptrend; conversely if they drop lower lows this may signal that downtrends could be …

Read More »

Momentum Indicator Trading Strategies to Boost Your Profits

Algorithmic Trading strategies

Momentum trading can be an extremely profitable strategy for those able to manage its risks and stick to an established plan. However, it is crucial that trades be exited before reaching an overextended technical state. Divergences between the price chart and momentum indicator can help investors spot potential trends reversals by showing where the indicator line moves oppositely from price …

Read More »

Awesome Oscillator Simplifying Momentum Analysis for Profitable Trades

Algo trading strategies

Oscillator trading strategies provide traders with many valuable ways to identify potential buying and selling opportunities. Some of the more basic signals include zero line crossings, twin peaks and saucer setups. The Awesome Oscillator indicator can be easily added to your charts, with most trading platforms including this tool by default. Unfortunately, like any technical indicator, it does not guarantee …

Read More »

How to Master the Commodity Channel Index for Effective Momentum Analysis

Momentum is a cornerstone of trading success, and in this article you’ll learn to master the CCI indicator – an effective momentum gauge designed to help traders anticipate market reversals and execute profitable trades. As with other momentum indicators, the CCI measures relative price levels by comparing them to their averages over a certain period. Its use is relatively straightforward …

Read More »

Artificial Intelligence and Machine Learning – The Future of Technical Analysis and Trading

As a trader, artificial intelligence (AI) could be an invaluable asset to enhance your technical analysis skills. AI can help uncover patterns which would otherwise remain hidden. Machine learning is an important subfield of AI that uses algorithms to automatically extract insights from data, enabling computers to make increasingly accurate decisions without being programmed specifically for each task. 1. Predictive …

Read More »

The Importance of Multi-Timeframe Analysis in Technical Trading

Technical trading requires mastery of multiple time frames. Being adept in this area will significantly increase a trader’s odds of success and help to strengthen his/her chances. Pro traders prefer multi-time frame analysis because it helps them keep an eye on big picture and long term trends, and fine tune their entry and exit points. Trend Analysis Trend analysis is …

Read More »