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PRICE CHANNEL Commodity or stock prices are in constant vacillation. When you draw a pair of parallel lines to approximate the trend of the prices, you are creating a price...
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MOVING AVERAGE The Mean When dealing with time series data, a moving average smooths out short-term fluctuations. It also highlights long-term trends. Practical applications of the moving average would be...
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PIVOT POINT Pivot point is a redictive indicator of market movement. It is Simply an Average A pivot point is calculated as an average of significant prices, namely the High,...
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BOLLINGER BANDS Bollinger bands measure the height of the price relative to previous trades. This is a technical analysis tool invented by John Bollinger in the 1980s. evolved from the...
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ON-BALANCE VOLUME A price-volume relationship. Based on a cumulative volume, the on-balance volume relates price and volume in the stock market, and it has the formula: OBV = OBVprev +...
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MONEY FLOW Price times volume Money flow approximates the dollar value of a certain day’s trading. The formula is price multiplied by volume. Generally, a value of 80 is counted...
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TRIX INDICATOR Price times volume The Trix Indicator (TI) shows the slope of a triple-smoothed exponential moving average. The term Trix is actually a shortcut of “triple exponential” and was...
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STOCHASTIC OSCILLATOR (SO) A momentum indicator that uses support and resistance levels Calculations Dr. George Lane promoted this indicator in the 1950s. “Stochastic” refers to the location of a current...
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RELATIVE STRENGTH INDEX (RSI) a momentum oscillator J. Welles Wider developed the RSI and published it in a 1978 book, “New Concepts in Technical Trading Systems”. It was also published...
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PARABOLIC SAR (PS) used to find trends in market prices and securities J. Welles Wilder Jr. devised the Parabolic Stop and Reverse (SAR) to find trends in market prices or...
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MOVING AVERAGE CONVERGENCE/DIVERGENCE (MACD) a lagging indicator that is also a form of Absolute Price Oscillator Definitions Gerald Appel developed MACD as a technical analysis indicator in the late 1970s....
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COMMODITY CHANNEL INDEX (CCI) used in identifying cyclical trends in commodities, equities and currencies Donald Lambert introduced the CCI (an oscillator) in an article published in the October 1980 issue...
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AVERAGE DIRECTIONAL INDEX (ADX) an indicator of trend strength J. Welles Wilder created the Average Directional Index in 1978 as an indicator of trend strength in a series of prices...
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ADVANCE DECLINE LINE (ADL) measures the number of individual stocks participating in a market rise or fall Definition The ADL is a stock market indicator used by speculators to measure...
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ACCUMULATION/DISTRIBUTION INDEX (ADI) A cumulative total volume analysis indicator Marc Chaikin created the ADI as a cumulative total volume technical analysis indicator. The ADI adds or subtracts each day’s volume...
