Technical analysis

Coppock Curve Unearthing Long-Term Trend Trading Opportunities

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 …

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Unleash the Power of Relative Strength Index for Momentum Trading

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 …

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A Comprehensive Guide to Overbought and Oversold Conditions

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 …

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How to Use the Rate of Change Indicator to Uncover Momentum Secrets in Market Prices

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 …

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Klinger Oscillator – A Comprehensive Guide to Volume Adjusted Momentum Analysis

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 …

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Know Sure Thing – Unlock the Potential of Divergence and Convergence in Momentum Trading

Know Sure Thing (KST), is a momentum indicator based on Rate of Change (ROC). It helps traders interpret rate-of-change price data by providing trading signals generated from centerline and signal line crossovers. Divergences produced by this strategy can also help identify trend reversals. Learn to use IQ Option with its assistance. Identifying Divergences Martin Pring created the KST, or Know …

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Harnessing the Power of Bulls and Bears for Momentum Profits

The Elder Ray Index is a trend-following indicator, employing two indicators referred to as Bulls Power and Bears Power to track price trends. A 13-period exponential moving average (EMA) helps determine which direction the trend is moving in, with trading signals generated whenever there is divergence between Bulls Power and price. This indicator works on the theory that during an …

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Keltner Channels – Harnessing Volatility for Trend Analysis

Keltner Channels provide traders with valuable price signals in rapidly moving markets. Similar to Bollinger Bands, this volatility-based envelope indicator helps traders better time their entries and increase winning rates. Developed by Chester Keltner and updated by Linda Raschke, the Keltner Channel utilizes average true range to define volatility bands. It provides an effective method of detecting directional trends as …

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How Range Analysis Can Reveal Trend Reversals

Donald Dorsey created the Mass Index as a volatility indicator to pinpoint potential trend reversals and understand widening and contracting trading ranges, which technical analysts often fail to analyze due to their focus on singular price/volume movements. When the mass index reading spikes above 27 and then falls back under 26.5, this could signal that trading may be viable. Trend …

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