Tag Archives: Indicators

The MACD indicator measures market trends and momentum. It is calculated by subtracting exponential moving averages (EMAs). Traders look out for MACD/signal line crossovers and divergences to identify reliable buy and sell signals. MACD is a lagging indicator, meaning it may miss early signals in trend changes; however, it can quickly respond to rapid rises and falls in price. Convergence …

Some of the most effective trading strategies involve following market trends. But, identifying one can often prove challenging in volatile or fluctuating markets. At this stage, momentum indicators such as the Average Directional Index can come in handy to help traders identify trends. They include positive and negative directional indicators to aid traders in understanding trends better. Trend Strength Trend …

TII is an oscillator used to gauge trend strength. Its values range from 0-100; any values above 50 indicate bull trends while values below 50 indicate bear trends. There are various trading systems based on TII. The most well-known method involves two signal lines at 20% and 80% level; another simpler strategy entails using only the middle line (50%) as …

Moving averages only give an idea of what has already taken place; therefore, traders need to be able to detect early indicators of trend change in order to profit. Guppy offers a novel way of approaching this problem by pitting moving average ribbons against one another. When short-term MAs pass above long-term ones, buying opportunities arise; when they pass below, …

Donchian Channels are trend-following indicators designed to spot price trends and identify trading opportunities. When breaking above an upper band or breaking below a lower band, traders should enter long positions whereas when breaking below either band they should shorten. Richard Donchian designed his indicator with this purpose in mind and most traders use it accordingly today. Highs Donchian channels …

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 …