EMA
Exponential Moving Average
An Exponential Moving Average (EMA) is a crucial technical indicator in stock analysis. Unlike the Simple Moving Average (SMA), EMA gives more weight to recent prices, making it more responsive to current market conditions.
SMA
Simple Moving Average
A Simple Moving Average (SMA) is a fundamental tool in technical analysis for understanding stock price trends. To calculate it, you sum up the closing prices of a stock over a defined period (commonly 50, 100, or 200 days) and then divide by the number of days in that period. This results in a single data point, which is plotted on a chart. As new data becomes available, the oldest data point is dropped, and the calculation is updated, creating a moving average line.
BB
Bollinger Bands
Bollinger Bands consist of a middle band (SMA) and two outer bands based on standard deviations. They help assess volatility and potential breakout points.
The %B line represents the value of the close within the upper and lower range of the bands.
The Bolinger Band Squeeze line measures the trending volatility with low values indicating low volatility, and high values indicating higher volatility.
MACD
Moving Average Convergence/Divergence
The Moving Average Convergence Divergence (MACD) is a versatile and popular indicator used in stock analysis. It consists of three components: the MACD line, the signal line, and the MACD histogram.
RSI
Relative Strength Index
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.
ADX
Average Directional Index
The Average Directional Index (ADX) is a technical indicator used to measure the strength of a trend, regardless of whether it's an uptrend or downtrend. It combines the positive directional indicator (+DI) and negative directional indicator (-DI) to help traders determine trend strength and potential trading opportunities. ADX values above 25 typically indicate a strong trend, while values below 20 suggest a weak or non-trending market.
Stochastic
Stochastic Oscillator
The Stochastic Oscillator is a momentum indicator comparing a particular closing price of a security to its price range over time. The sensitivity of the oscillator to market movements can be reduced by adjusting the time period or by taking a moving average of the result.
ROC
Rate of Change
The Rate of Change (ROC) is a momentum oscillator that measures the rate of change of a stock's price over a specific period. It is calculated by dividing the current price by the price n periods ago and multiplying by 100.
Williams %R
Williams %R
The Williams %R is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to -100, with values above -20 indicating overbought conditions and values below -80 indicating oversold conditions.
MFI
Money Flow Index
The Money Flow Index (MFI) is a technical indicator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 80 indicating overbought conditions and values below 20 indicating oversold conditions.
ATR
Average True Range
The Average True Range (ATR) is a technical indicator used to measure market volatility. It is calculated by taking the average of the true range over a specific period.
Stoch RSI
Stochastic RSI
The Stochastic RSI (Stoch RSI) is a technical indicator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 80 indicating overbought conditions and values below 20 indicating oversold conditions.
PSAR
Parabolic Stop & Reverse
Parabolic Stop and Reverse (PSAR) is used to determine the direction of an asset's trend and potential reversal points. It appears as dots placed above or below the price chart. When the PSAR dots are below the price, it signals an uptrend, and when they are above, it signals a downtrend. Traders use PSAR to set stop-loss orders and identify potential buy or sell signals based on trend changes. The PSAR is calculated using the previous period's extreme price and an acceleration factor, typically set to 0.02, which increases incrementally by 0.02 up to a maximum of 0.20
VWAP
Volume Weighted Average Price
Volume Weighted Average Price (VWAP) calculates the average price of an asset over a specified period, weighted by its trading volume. It is used to gauge the price level where most trading activity occurred, acting as a benchmark for intraday price trends. Traders use VWAP to assess whether an asset is overbought or oversold. If the price is above the VWAP, it signals a bullish trend, while if it's below, it indicates a bearish trend. VWAP is commonly used to guide entry and exit points during the trading day.
OBV
On Balance Volume
On-Balance Volume (OBV) measures buying and selling pressure based on volume. It adds volume to a running total when the price closes higher and subtracts volume when the price closes lower. The OBV helps identify potential trend reversals or confirmations. A rising OBV suggests increasing buying pressure, signaling a potential uptrend, while a falling OBV signals increasing selling pressure, indicating a potential downtrend. Traders often use OBV in conjunction with price movements to spot divergence or confirm trends, helping to predict future price direction.
HIGH
Highest
The HIGH indicator represents the highest price an asset reaches during a defined time period. It is used to identify resistance levels and potential price ceilings. When the price exceeds the HIGH of a previous period, it may signal a breakout or upward momentum. Conversely, if the price fails to break above the HIGH, it can indicate a reversal or consolidation. The HIGH is often combined with other technical indicators to assess market strength and to inform buying and selling decisions, particularly when the price approaches historical highs.
LOW
Lowest
The LOW indicator represents the lowest price at which an asset trades during a specific time period (e.g., a day, hour, or minute). It is used in technical analysis to identify key support levels and price reversals. A drop below the LOW can indicate a bearish trend, while a price bouncing off this level may suggest support and a potential reversal to the upside. Traders often use the LOW in conjunction with other indicators to make more informed decisions regarding entry and exit points in the market.