Chart Indicators

The Accumulation Swing Index is a cumulative total of the Swing Index and attempts to show the phantom line which represents the “real market,” which theoretically occurs among the open, high, low and close prices. Since the Accumulation Swing Index attempts to show the "real market," it closely resembles the prices themselves. This allows you to use classic support/resistance analysis on the Index itself.

Typical analysis involves looking for breakouts, new highs and lows, and divergences.

The Average True Range indicator is used to determine the volatility of the market. The idea is to replace the high-low interval for the given period, as the high-low does not take into consideration gaps and limit moves. You set the period when you create the study.

The True Range is the largest of:

• difference between the current maximum and minimum (high - low)

• difference between the previous closing price and the current maximum

• difference between the previous closing price and the current minimum

The Average True Range is a simple moving average of the true range values.

The Balance of Power indicator measures the market strength of buyers against sellers by assessing the ability of each side to drive prices to an extreme level. The calculation is: Balance of Power = (Close price – Open price) / (High price – Low price) The resulting value can be smoothed by a moving average.

Traders may use this indicator to help:

• Identify the direction of a trend.

• Find divergences between the price and the BoP in order to identify a potential trend reversal or trend continuation setup.

• Take advantage of overbought and oversold conditions.

%B quantifies a security's price relative to the upper and lower Bollinger Band. There are six basic relationship levels:

• %B equals one when the price is at the upper band.

• %B equals zero when the price is at the lower band.

• %B is greater than one when the price is above the upper band.

• %B is less than zero when the price is below the lower band.

• %B is greater than .50 when the price is above the middle band (20-day SMA).

• %B is less than .50 when the price is below the middle band (20-day SMA).

The default setting for %B is based on the default setting for Bollinger Bands (20,2). The bands are set two standard deviations above and below the 20-day simple moving average, which is also the middle band. The security price used is the closing price or the last trade.

The Chaikin Oscillator monitors the flow of money in and out of the market. It calculates and plots the difference between the 10-period exponential moving average and the three-period exponential moving average of the accumulation distribution. The accumulation distribution uses the relationship between the open and the close of the bar and the range of the bar to weigh and characterize the volume as accumulation (buying) or distribution (selling).

In short, the Chaikin Oscillator compares the money flow to the price action of an issue, which allows the user to recognize tops and bottoms in short cycles.

This is a trend-following indicator that identifies the stop loss for a long or short position by using a variation on directional movement. It is calculated on the average true range of an instrument’s volatility. The stops are placed under (and on) the high (low) of the last “n” bars. The difference is proportional to the average True Range on “N” bars.

You can use the Chande Kroll to trade in a number of ways:

• Sell when the price crosses below both lines.

• Buy when the price crosses above both lines.

• Trade when the two lines cross each other.

As the price moves sideways you will note that the lines begin to flatten out and the price will trade broadly between the two lines. Make sure that when you trade it is always in the direction of the trend.

A simple trend-following breakout system, this moving average indicator that plots the highest high and lowest low over the last period time intervals. The signals derived from this system are based on the following basic rules:

• When the price closes below the Donchian Channel, sell short and liquidate long positions.

• When the price closes above the Donchian Channel, buy long and cover short positions.

Measures the amount of buying and selling pressure in the market. This indicator consists of two separate indicators known as "bull power" and "bear power". These can help a trader to determine the position of the price relative to a certain exponential moving average (EMA).

Bull Power = Daily High - n-period EMA Bear Power = Daily Low - n-period EMA

Use the values of the bull and bear power along with divergence to help make transaction decisions. Consider taking a long position when the bear power has a value below zero but is increasing, and the bull power's latest peak is higher than it was previously. Consider a short position when the bull-power value is positive but falling, and the bear power's recent low is lower than any other previous bottom. The slope of the EMA can also be used in both cases to help confirm the direction of the trend.

SMA/WMA/EMA Envelopes plot a band composed of two moving averages, one which is shifting upwards, the other shifting downwards, to help define a stock's upper and lower boundaries. The bands of an envelope are calculated as follows:

Upper Band = MA(CLOSE, N)*[1+K/100]

Lower Band = MA(CLOSE, N)*[1-K/100]

Where:

MA — Simple (or Weighted or Exponential) Moving Average;

N — averaging period;

K/100 — the value of shifting from the average (measured in basis points).

The Keltner Channel indicator is sensitive to volatility, and plots an "envelope" of two bands above and below the middle line, which represents a 20-period Exponential Moving Average (EMA). The upper and lower bands define the area inside of which the price should generally fall. The price crossing or floating towards these lines could indicate a trading opportunity.

The Keltner Channel bands are calculated as follows:

Middle Line = EMA(TP)

Top Line = EMA(TP + Dev x TR)

Bottom Line = EMA(TP - Dev x TR)

Where:

EMA - exponential moving average

TP = typical price

TR - trade range equals high - low

Dev — the deviation factor.

A two-line indicator used to determine momentum in stock trends. As an oscillator, it fluctuates above and below zero, providing trade signals and analytical insight based on divergence with price and KST and signal Line crossovers.

The indicator formula uses four different time frames to show overall momentum (rather than momentum over only one specific timeframe):

• ROCMA1 = 10-Period SMA of 10-Period Rate-of-Change

• ROCMA2 = 10-Period SMA of 15-Period Rate-of-Change

• ROCMA3 = 10-Period SMA of 20-Period Rate-of-Change

• ROCMA4 = 15-Period SMA of 30-Period Rate-of-Change

• KST Line = (RoCMA1 x 1) + (RoCMA2 x 2) + (RoCMA3 x 3) + (RoCMA4 x 4)

• Signal Line = 9-period SMA of KST, where SMA stands for Simple Moving Average and ROC stands for Rate-of-Change.

While the formulas are different, the applications of KST are similar to those of the MACD.

A crossover occurs when a faster Moving Average (a shorter period moving average) crosses either above or below a slower (i.e. longer period) moving average. A crossover that moves above a slower MA is considered a bullish crossover; one that moves below is considered a bearish crossover.

Visually displays when a simple moving average (MA) line crosses over or under an exponential moving average (EMA) line on a price chart, providing potential buy or sell signals based on these crossovers; essentially, it highlights trend changes by showing when the faster-reacting EMA crosses the slower MA line.

This is a trend-following dynamic indicator that shows the correlation between two moving averages, generally a 26-period and 12-period SMA or WMA or EMA. You can modify the period length when you create the study. To help illustrate opportunity, a 9-period EMA "signal line" is plotted on top of the MACD.

The MACD and signal line are plotted using the following calculations:

MACD = MA(CLOSE, 12)-MA(CLOSE, 26)

SIGNAL = EMA(MACD, 9)

MACD Histogram/OSMA = MACD - SIGNAL

Where:

MA — Simple or Weighted or Exponential Moving Average;

SIGNAL — the signal line of the indicator.

Shows, in percent, the amount of days with rising prices in the chosen period of time and is often used to either confirm the trend of the underlying instrument or to signal an overbought or oversold.

The McGinley Dynamic is a smoothing mechanism for prices that often tracks far better than any moving average. It minimizes price separation and price whipsaws and hugs prices much more closely. Because of the calculation, the Dynamic Line speeds up in down markets as it follows prices yet moves more slowly in up markets.

The Momentum is the difference between the current point (price or something else) and the point N periods ago. Momentum is calculated as a ratio of today’s price to the price several (N) periods ago.

Momentum = CLOSE(i)/CLOSE(i-N)

Where:

CLOSE(i) — is the closing price of the current bar.

CLOSE(i-N) — is the closing bar price N periods ago

Helps traders identify trends in price fluctuations by smoothing out price data. MAs are commonly used in technical analysis to help determine support and resistance levels, and to identify trend direction

Based on both a single exponential moving average (EMA) and a double EMA, the DEMA is a fast-acting moving average that is more responsive to market changes than a traditional moving average. It was developed in an attempt to create a calculation that eliminated some of the lag associated with traditional moving averages.

A technical indicator that tracks price changes over time for a financial instrument, such as a stock or commodity. It's a weighted moving average, meaning it gives more importance to recent data points than older data points. EMAs are used to identify trends in price, and can be used to predict future prices. A rising EMA indicates an upward trend, while a falling EMA indicates a downward trend.

The Moving Average Multiple Indicator (MMA), also known as the Guppy Multiple Moving Average (GMMA), is a technical indicator that uses multiple exponential moving averages (EMAs) to identify trends and trading opportunities.

A security's uptick volume minus its downtick volume over a specified time period. The net volume of a stock aggregates the total positive and negative movements of the security over this period. When the total upward movement is greater than the total downward movement over this period, the stock has a positive net volume.

The concept behind the OBV indicator is: volume precedes price. OBV is a simple indicator that adds a period's volume when the close is up and subtracts the period's volume when the close is down. A cumulative total of the volume additions and subtractions forms the OBV line.

If today’s close is greater than yesterday’s close then:

OBV(i) = OBV(i-1)+VOLUME(i)

If today’s close is less than yesterday’s close then:

OBV(i) = OBV(i-1)-VOLUME(i)

If today’s close is equal to yesterday’s close then:

OBV(i) = OBV(i-1)

Where:

OBV(i) — is the indicator value of the current period.

OBV(i-1) — is the indicator value of the previous period.

VOLUME(i) — is the volume of the current bar.

For use in trending markets, parabolic SAR uses a trailing stop and reverse method to help determine good exit and entry points. The Parabolic SAR calculation is: SARt+1 = SARt+ AF x (EPtradex SARt)

Where:

SARt+1 — next period's SAR

SARt - current SAR

AF - acceleration factor, begins at .02 and increases by .02 to a maximum of 0.20.

Note: You can reset the initial, increments and maximum acceleration factor when you create the study.

EPtrade — the extreme price (HIGH for long positions and LOW for short positions).

ROC is a refined version of Momentum. The readings fluctuate as percentages around the zero line. You set the number of periods when you create the study.

Rate of change =100(V/Vx)

where:

V - the latest closing price.

Vx - the closing price of x bars ago.

The RSI indicator is for overbought/oversold conditions. It goes up when the market is strong, and down when the market is weak, and oscillates between 0 -100. The RSI calculation is:

RSI = 100-(100/1+RS)

Where:

RS - Average of X bars Up Closes/Average X bars Down Closes (X=number of bars set by user)

The Spread indicator helps track the price difference between two securities. Commonly used in pair trading, it allows you to assess divergence or convergence in price behavior, aiding in strategies that rely on arbitrage or correlation.

The stochastic oscillator provides information about the location of a current close in relation to the period's high and low. It ranges between 0% and 100%. A reading of 0% indicates that the close was the lowest price at which the security traded during the preceding x number of time periods. A reading of 100% indicates that the close was the highest price at which the security traded during the preceding x number of time periods.

Note: You can specify the source and input price, and the observation period, method (SMA, WMA, EMA or TMA), period of slow average and period of fast average when you create the study.

Helps identify price trends and generate buy or sell signals for a financial asset. It plots a line on a price chart that changes color to indicate the direction of the price trend:

Green: The price is likely going up, and it's a good time to buy

Red: The price is likely going down, and it's a good time to sell

The Ultimate Oscillator combines the price action for three different time frames. You set the observations periods 1, 2, and 3 when you create the study.

Time Frames:

true low = min(low or prev close)

buying pressure = close - true low

true range = max(high - low, high - prev close, prev close - low)

Buying pressure sum 1, buying pressure sum 2 and buying pressure sum 3 are calculated by adding up buying pressures for 3 different time frames.

The same applies to the true range sum 1, 2 and 3.

raw ultimate oscillator = 4 * (buying pressure sum 1 / true range sum 1)

+ 2 * (buying_pressure_sum_2 / true_range_sum_2) + (buying_pressure_sum_3 / true_range_sum_3)

ultimate oscillator = raw ultimate oscillator / (4 + 2 + 1) ) * 100

The Williams Percent Range (%R) indicator identifies the overbought/oversold levels. The scale extends from 0 to -100.

%R = (HIGH(i-n)-CLOSE)/(HIGH(i-n)-LOW(i-n))-100

Where:

• CLOSE — is today’s closing price.

• HIGH(i-n) — is the highest high over a number (n) of previous periods.

• LOW(i-n) — is the lowest low over a number (n) of previous periods.