(Reference ChartNexus : All Details Collected
From Chart Nexus XpertTrader)
Accumulation/Distribution:
Acc/Dis is a momentum indicator
measuring the accumulation and distribution in a counter where the accumulation
refers to the sustained buying pressure and distribution refers to the
sustained selling pressure. It is a volume-based indicator that is used to
confirm the strength of the price movement. Acc/Dis may also be used to seek
for possible reversal points through the divergence between the Acc/Dis line
and the price movement
Average Directional Index
Average Directional Index (ADX) is a
popular trend indicator used to measure the strength of a trend. A high reading
which is usually taken to be above 25 indicates a strong trend. Readings below
20 indicate a lack of trend. In addition to the ADX line, there are two other
lines that are overlaid on the chart which are the +DI and -DI, respectively
the Plus Directional and the Minus Directional. Those two lines help to give
signals with +DI line crossing up -DI line giving a bullish signal whereas +DI
line crossing down -DI line gives a bearish signal
Bollinger Band:
Bollinger Bands refers to the 3
lines namely the MA, the Upper Band and the Lower Band. The main purpose of
those 3 lines is to indicate whether an oversold or an overbought condition has
happened. An overbought condition occurs when the price goes beyond the Upper
Band while an oversold condition occurs when the price goes below the Lower
Band. Another use of Bollinger Bands is to identify situations where the band
formed by the Upper and Lower Bands gets smaller and smaller. This is called a
Bollinger Squeeze and any price breakout of the Bollinger Squeeze may indicate
a possible opportunity to catch the ensuing trend. If the price is breaking up
the Upper Band of the Bolliger Squeeze, it indicates a bullish rally may
happen. Conversely if the price is breaking down the Lower Band, it indicates a
bearish rally may happen
Chaikin Money Flow:
Chaikin Money Flow (CMF) gives a
measure of the amount of money flow volume over a specified period of time by
measuring the close of the price with respect to its high and low together with
the volume behavior. Hence if the price has been consistently closing near its
highs on high-volume days, we expect CMF to have high values or swinging higher
CMF oscillates between -1 and +1 with the centerline at the zero level. Hence when CMF moves into the positive region, it indicates buying pressure and conversely if the CMF moves into the negative region, it indicates selling pressure
CMF oscillates between -1 and +1 with the centerline at the zero level. Hence when CMF moves into the positive region, it indicates buying pressure and conversely if the CMF moves into the negative region, it indicates selling pressure
Commodity Channel Index:
Commodity Channel Index (CCI) is a
very useful indicator that tells us how far the price is away from the average
price in a certain period. If the CCI value is high, this signifies that the
price is far above the average price while a low CCI value signifies that the
price is below the average price. Hence, this indicator is valuable in
determining if a counter is oversold or overbought. In addition, CCI may detect
weaknesses in the trend through divergences with the Price action
Force Index:
Force index is an indicator
developed by Alexander Elder that aims to take into account the direction,
extent and volume to determine the shifting power plays between the bulls and
the bears. It is calculated by having the current close subtracted by the
previous close and then multiplying this number by the volume
GMMA:
GMMA is an indicator that aims to
reflect the sentiments of the short-term traders and long-term investors. This
is achieved by using 6 short-period Moving Averages and 6 long-period Moving
Averages. When the lines in the 2 sets of Moving Averages are parallel and
moving in the same direction, it indicates that both the short-term traders and
the long-term investors are sharing the same outlook on the counter. On the
other hand, if the lines are crossing up and not moving in parallel motion this
indicates diverging views between the short-term traders and the long-term
investors
MACD
MACD created by Gerald Appel in the
late 1970s, is a useful and commonly used indicator for both its trend and
momentum properties. MACD indicator consists of a MACD line, a Signal line and
a Histogram. The MACD line is constructed by taking the difference between two
exponential Moving Averages while the Signal line is the Moving Average of the
MACD line. Hence the Signal line is a slower line compared to the MACD line.
The Histogram measures the difference between the MACD line and the Signal
line. Generally, a MACD line reading above zero signifies that the counter is
trending up while a reading below zero signifies that the counter is trending
down. If the MACD line is flat or moving horizontally, it shows that the
counter is moving sideways. Another interpretation of the MACD indicator is
from the crossover between the MACD line and the Signal line. As the MACD line
is faster compared to the Signal line, the MACD line crossing up the Signal
gives a bullish signal while the reverse gives a bearish signal. Finally, the
Histogram which is tracking the momentum of the counter gives us signals
through the change of the Histogram bar heights.
Money Flow Index:
Money Flow index or the commonly
used abbreviation MFI, is a momentum indicator that is based on both price and
volume. Hence MFI gives an indication of whether money is flowing in or out of
the counter. An upward sloping MFI generally signifies positive money flow
while a downward sloping MFI generally signifies negative money flow. An
Overbought and Oversold are commonly drawn on the MFI chart which ranges from
0% to 100% to identify the Overbought and Oversold region respectively.
Money Flow Index:
Money Flow index or the commonly
used abbreviation MFI, is a momentum indicator that is based on both price and
volume. Hence MFI gives an indication of whether money is flowing in or out of
the counter. An upward sloping MFI generally signifies positive money flow
while a downward sloping MFI generally signifies negative money flow. An
Overbought and Oversold are commonly drawn on the MFI chart which ranges from
0% to 100% to identify the Overbought and Oversold region respectively.
Momentum:
Momentum indicator gives an
indication of the rate of price change by plotting the difference between the
current closing price and the closing price T periods ago. If the Momentum
indicator is moving up sharply, this signifies that the price is moving up at a
fast rate. Conversely, if the Momentum indicator is moving down sharply, this
signifies that the price is moving down at a fast rate.
Moving Average:
Moving Average is the most common
used indicator in Technical Analysis and it is used to indicate the trend of
the price movement. As the name indicates, a Moving Average is taking the
average of the price in a moving time window. For a simple Moving Average, the
weightage of each price point in the moving window is taken equally. However,
for some traders who want to give higher weightage to the more recent price
points in the window, an exponential Moving Average is used. The number of data
points in the window is referred to as Period. Traders typically put a few
Moving Averages on the chart with values such as 20, 50, 100 and 200 so as to
track both the long-term trend and short-term trend
Price Channels:
Price Channels is an indicator that
comprises of two channel lines with the lower channel equalling the given
period’s lowest price and with the upper channel equalling the given period’s
highest price
Relative Strength Index:
Relative Strength index or the
commonly used abbreviation RSI, is a very popular indicator that measures the
speed and change of price movements. This is done by measuring the gains in
periods that the prices have closed up versus the losses in periods that the
prices have closed down. RSI oscillates between 0 to 100 with overbought and
oversold levels typically placed at 70 and 30 respectively. Counters with RSI
in the overbought region indicate that the buying might be overextended and a
retracement may be imminent. Conversely, RSI in oversold region indicate that
the selling may be overextended and a rebound may be imminent. However do take
note, in a strong trending period, the RSI might stay in the overbought or
oversold region for a long time
Williams %R:
Williams %R is a momentum indicator
developed by Larry Williams. It measures overbought and oversold levels by
comparing a counter’s close with respect to its high-low range over a certain
period of time. It is used to determine market entry and exit points. The
Williams %R produces values from 0 to -100; a reading below -80 usually
signifies that the counter is oversold, while a reading over -20 usually
signifies that the counter is overbought
