Indicator Descriptions


Accumulative Swing Index – ASI is used to determine the long term trend on an equity based on data from a selected period.  A negative ASI would suggest that the long term trend will be lower while a positive ASI would point to a higher long term trend.

 

Aroon – This study is used as an indicator of the trend on a symbol.  It is made up of two components, Aroon-Up and Aroon-Down.  Aroon-Up is a chart of how long it takes to reach the period high.  It will be displayed as a percentage of the whole period.  Aroon-Down is the same except for the period low.  If the period high was in the last bar the Aroon up will be 100.  The stronger of the two components indicates the trend.

 

Aroon Oscillator – This study is used as an indicator of the trend on a symbol.  It is made up of a single component.  It is derived by subtracting Aroon-Down from Aroon-Up.  If the value is positive an uptrend is indicated, while a negative value indicates a downtrend.

 

Bollinger Bands – Made up of a Simple Moving Average and the upper and lower bands set at a standard deviation.  The standard deviation represents the volatility.  A price crossing the upper band indicates a relatively high price, while a cross of the lower bar indicates a relatively low price.  A narrow gap between the upper and lower bar indicates lower volatility, while a wide gap indicates the inverse.

 

Chaikin Money Flow – Indicates buying and selling pressure on the equity.  Positive values indicate buying pressure while negative values indicate selling pressure. 

 

Chaikin Volatility – A percent change of the moving average taken from the difference between the High and low in the period.  A high percentage positive or negative reflects large price change in the same direction.  A low percentage reflects a lack of price change.

 

Chande Momentum Oscillator – A Momentum indicator that calculates the difference between the sum of all gains and losses in a given period then divides them by the sum of price movements in that period.

 

Commodity Channel Index – A measure of the difference between the price change and the average price change in the period divided by the deviation.  The period length is important as a shorter period will make it more volatile.

 

Comparative Relative Strength – Graphs the result of dividing the first symbol by the second.

 

Detrended Price Oscillator – The DPO is a chart of the difference between the price and the SMA, in an attempt to remove the trend from the price and chart the cycles of the symbol. 

 

Directional Movement System – This indicator first identifies if a market is trending.  It is made up of three lines ADX, DI+, and DI-.  The ADX is the Average Directional Movement Index, will indicate if the market is trending up or down with a high reading.  The second is DI+ which will account for upward trend movement.  The third is DI- which will map the downward trend movement.

 

Ease Of Movement – Displays the movement of the symbol in relation to the volume in that period.   A level near zero indicates a lack of price movement or that a high volume is needed for price changes. A high level reflects that the price moved up with a low volume.  A low level reflects that the price moved down on low volume.

 

Exponential Moving Average – Similar to a SMA (Simple Moving Average), except that the newer data is weighted more heavily. 

 

Fractal Chaos Bands – These bands are used to adjust the chaotic nature of the market into a more trend based slope.  The lack of slopes in the bands can be interpreted as minor changes while the presence of slopes point to the greater market trend.

 

Fractal Chaos Oscillator – Ranging between -1 and 1 this can be used to determine if trending (1) or if chaotic (-1).  Flat values can indicate an impending change.

 

High Low Bands – Three bands are used in this indicator.  The center band is the YIDYA and the two outside bands are calculated from that using a fixed percentage.  They are used to detect potential price shifts when the price breaks through the upper or lower band from within them.

 

High Minus Low – Graphs the difference between the high and the low price of that period.

 

Historical Volatility – Uses historical data to determine the deviation from the average price which is then applied to the current period to calculate the realized volatility.

 

Linear Regression Forecast – Forecasted performance based on a linear regression analysis using the historical data series.

 

Linear Regression Intercept – Value needed for plotting a linear regression forecast using the period provided.

 

Linear Regression RSquared –Strength between a linear regression analysis and the price change of the symbol. 

 

Linear Regression Slope –Rate which the linear regression analysis changes based on the defined period.

 

MACD – Moving Averages that uses two lines to show overbought and oversold trends based on the crossing of the MACD line.A crossingoftheMACD line indicates bullish and bearish signals based on the direction of crossing. The MACD line is the difference between the long and short cycle.  The signal line is the moving average of that line for the specified period.  The histogram is the difference between the MACD and the signal line.

 

Mass Index – Indicator used to predict future price reversals based on if the 25-period MI grows above 27, then falls below 26.5

 

Median – The running median of the price in a chart tick.

 

Momentum Oscillator – Indicator of the sum of all gains and losses then divides them by the sum of all price movements in that period. A high level reflects the security may be overbought while low levels reflect the security may be oversold. 

 

Money flow Index – Momentum Indicator based on the Accumulation / Distribution Indicators which calculate based on price in relation to volume. This is typically used to predict price reversals on the idea that volume leads prices.

 

Moving Average Envelope – Moving average based on the defined period shifted a percentage.

 

Negative Volume Index – Indicates price trends when volume decreases in relation to its previous day’s volume. It therefore identifies the price trends in the lower volume periods, when fewer people are trading.  It is often used with a moving average of itself (typically for a 255 day period).

 

On Balance Volume – Price indicator that predicts price movements based on volumes traded.  It is a cumulative indicator which adds to the indicator if the volume is larger than the previous day and removes from the indicator if the volume is smaller than the previous day.

 

Parabolic SAR – Indicator that signals bullish and bearish price trends.

 

Performance Index – Displays the percentage that the security has increased or decreased since the first period displayed on the chart. An example would be if the Performance Index is at 20. This means the security has increased by 20% since the first period displayed on the left hand side of the chart.

 

Positive Volume Index – Measures the trend of the prices for days when volume increases from the previous day.  It therefore identifies the price trends in the higher volume periods, when more people are trading. PVI is used in conjunction with a moving average (typically 255 day).

 

Price Oscillator – Displays the difference of two moving averages in either points or in percentages. This oscillator is shown with a signal line, a histogram, and a centerline. Trading signals are generated with signal line crossovers, centerline crossovers, and divergences. For example, as the shorter moving is above the longer moving average, this will reflect strong upside momentum. On the opposite side, when the shorter moving average is below the longer moving average, this will reflect downside momentum.

 

Price ROC – Measures the percentage increase or decrease in price over time. If the ROC remains positive, this indicates that the price is still rising. Conversely, if the ROC is negative, the price is falling.

 

Price Volume Trend – The PVTillustrates the flow of money into and out of a security. It’s directly correlated to the underlying price action. The percentage change between the close and the prior day close multiplied by the volume is added to yesterday’s PVT.

 

Prime Number Bands – Finds the nearest prime number for the both the high and the low and plots the two numbers as bands.  As prime number bands show an upward movement, the signal of a bullish market is present. On the other hand, as prime number bands move downwards, a bearish market is forming.

 

Prime Number Oscillator – Shows the difference between the nearest prime number and price series. Whenever the PNO is constant and at a high value in the positive chart, a sell signal takes place. Now, when the indicator is low for two consecutive periods and is situated in the negative range, a buy signal is formed.

 

Rainbow Oscillator – Used to determine, with a certain rate of accuracy, the trends of the market. If the value of the oscillator goes beyond 80, the market becomes more and more unstable which could lead to a sudden reversal. If the oscillator goes below 20, the market is prone to a reversal. The safest, most stable area is between 20 and 80.

 

Relative Strength Index – Measures the speed and change of price movements. The RSI will be somewhere between 0 and 100. Typically, RSI is overbought when it is above 70 and oversold when it’s below 30.hd

 

Simple Moving Average – The average price of a security calculated by adding the source prices from the most recent trading days and dividing by the number of trading days considered. These are used to identify support and resistance levels.

 

Standard Deviation – A common statistical calculation for how far a variable quantity, such as the price of a stock, moves above or below its average value. Standard deviation is also a measurement of volatility. A wider range implies greater standard deviation and if the standard deviation is increased the investment is considered to be riskier.

 

Stochastic Momentum Index – Indicator that can warn of strength or weakness in a security. There are Trigger lines that are typically drawn at the 80% and 20% levels. When the lines cross, a signal is generated. The 80% value is used to show overbought levels while the 20% value will show oversold levels.

 

Stochastic Oscillator – Compares a security’s closing price to its price range over a given time period. Typically, in an upward market, prices tend to close near their high, and during a downward market, prices tend to close near their low.

 

Swing Index – Typically used to formulate the Accumulative Swing Index, as it is far more erratic than the accumulative form.

 

Time Series Moving Average – Shows the trend of stock prices based off the closing prices. This moving average is interpreted like the rest. If the price stays above the indicator, you have a bullish trend and when the price stays below the indicator, you have a bearish trend. Buy and Sell signals are triggered when price movements cross the Time Series line.

 

Trade Volume Index – Measures the amount of money flowing in and out of a security. The assumption is that there is buying pressure when the price trades near the ask price and selling pressure when it trades near the bid.

 

Triangular Moving Average – an average that is weighted with weights that rise from the most recent sample towards the farthest sample. So in effect the weighting function is a triangle that moves as the moving average moves.  This gives the last historical values a higher weight and to old values a lower weight.

 

TRIX – a momentum oscillator that displays the percent rate of change of a triple exponentially smoothed moving average.  There are three main signals to watch for. First, signal line crossovers are the most common signals.  Second, centerline crossovers provide chartists with a general momentum bias and a positive TRIX indicates bullish sentiment and negative TRIX would indicate bearish.

 

True Range – determines the volatility of a security.  Found by calculating the difference between the high price of the day and the low price of the day.

 

Typical Price – It measures the average of the high, low, and closing prices for the day. This can be used in any place a closing price or other single price field would be used.

 

Ultimate Oscillator – Uses the weighted average of three different time periods to reduce volatility and false trading signals. The value of this oscillator is between 0 and 100. Levels below 30 are deemed to be oversold. Levels above 70 signal overbought conditions.avors the bulls when above 50 and the bears when below 50……..

 

Variable Moving Average – an exponential moving average that is able to regulate its smoothing percentage based on market conditions. Its sensitivity grows by providing more weight to the ongoing data as it generates a better signal indicator for short and long-term markets.

 

Vertical Horizontal Filter – The Vertical Horizontal Filter (VHF) determines whether prices are trending. When the VHF is rising, it indicates the formation of a trend. Higher VHF values indicate a stronger trend. When the VHF is falling, it indicates the trend is ending and price is becoming congested. Very low VHF values indicate a trend may follow.

 

VIDYA – The variable index dynamic average is an exponential moving average where market volatility is also taken into consideration.  As market volatility increases the VIDYA moves faster and as volatility decreases the VIDYA moves slower.

 

Volume – the number of shares traded during a period of time.  Volume is a good indicator of liquidity as well; the more volume the easier it is to get in and out of a stock.

 

Volume Oscillator – measures the difference between a faster and slower moving average.  If the fast moving avg. is above the slow moving avg. the oscillator will be positive; and vice versa if the fast ma is below the slow ma then the oscillator will be negative.  The VO will be zero when the two MA’s cross.

 

Volume ROC – An indicator that displays the percentage difference between the current volume and the past volume.  A high volume ROC may indicate volume surges and can be used to define overbought/ oversold moments.

 

Weighted Close – This study is an average of each day’s price.  It gets its name from the fact that extra weight is given to the closing price.

 

Weighted Moving Average – This moving average assigns more weight to the most recent price data.

 

Welles Wilder Smoothing – is similar to an exponential moving average but responds slower to price changes than the estimated moving average.  The slower response is a function in that this indicator‘s formula carries a smaller percentage of historical data in its calculation.

 

Williams Accumulation Distribution – is traded on divergences.  When price makes a new high and the indicator fails to exceed its previous high distribution is taking place.  When price makes a new low and the indicator fails to make a new low accumulation is occurring.

 

Williams PctR – this oscillator is set on a negative scale, lowest being 100 and highest reading of 0.  100 represents the closing price that is the lowest low of the past (n) period of days, and a reading of 0 indicates a close today that is the highest high of the past (n) days.  Readings below 80 are regarded as oversold and readings above 20 are overbought conditions.





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