Here is a great technical indicators cheat sheet graphic created by Tradeciety.com What are the 4 types of indicators? Trend Indicators These indicators measure the direction of price action through quantifying uptrends and downtrends on a chart. They include moving averages and parabolic SAR. Momentum Indicators These indicators measure the magnitude and strength of movement […]
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The RSI indicator strategy uses the Relative Strength Index to make buy and sell decisions on a chart based on oversold and overbought reading versus the price of a stock or security. What Does the Relative Strength Index (RSI) Measure? The Relative Strength Index (RSI) is a technical indicator that traders use to quantify the
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RSI Divergence Cheat Sheet Bullish RSI Divergence A bullish RSI divergence pattern is defined on a chart when price makes new lower lows but the RSI technical indicator doesn’t make a new low at the same time. This is a signal that bearish sentiment is losing momentum with the high probability that buyers are stepping
What is the RSI indicator? The RSI indicator buy and sell signals are based on oversold and overbought conditions on a stock chart. The RSI is a measurement of price moving too far and too fast in one direction and as the RSI gets extended farther from the 50 RSI middle line the probability of
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The RSI indicator buy and sell signals are based on oversold and overbought conditions on a stock chart. The RSI is a measurement of price moving too far and too fast in one direction and as the RSI gets extended farther from the 50 RSI middle line the probability of a reversion to that mean
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The Parabolic SAR (stop and reverse) indicator is a technical trading tool that quantifies both trends and price reversals on a chart and can be used as a stop loss, trailing stop, or entry signal. The Parabolic SAR indicator was created as a trend following tool that allowed winning trades to run until they stopped
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The Chaikin Money Flow or CMF is a technical indicator created by Marc Chaikin and is a volume-weighted average of accumulation and distribution over a specific period of time. The standard time period used for this indicator is 2o days and is usually the default setting on many charting platforms. The CMF sums money flow
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On-Balance Volume (OBV) is a type of momentum indicator that uses volume to project the potential for price change. It measures buying and selling pressure as a cumulative indicator. By adding up the volume on up days and subtracting volume on down days, the indicator calculates and quantifies when the market is showing accumulation and
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What is ATR? The ATR indicator is the average true range technical indicator used in technical analysis to quantify the multi-day price range volatility on a chart. It is usually derived from the 14-day simple moving average of prices and the trading range and calculates the full trading range of price action. Charts can have gaps
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The following is a guest post from @PatternsWizard of PatternsWizard.com What is the Relative Strength Index (RSI)? RSI is a technical indicator used in technical analysis that helps to gauge the velocity of price changes. It is also a momentum oscillator and can point to overbought/oversold market conditions. RSI functions on the assumption that prices tend
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MACD (Pronounced Mac-Dee) is the short abbreviation for the moving average convergence/divergence technical indicator. The MACD is a trading indicator used in technical analysis to filter and trade the momentum of price action on a chart. It was created by the late Gerald Appel in the late 1970s as a tool for technical analysts. It
The CCI indicator (commodity channel index) is an oscillator originally created in 1980 by Donald Lambert . He developed CCI originally to identify and quantify cyclical moves in commodity charts, but this technical indicator has also been used on stock indexes, exchange traded funds, stocks and charts of other markets. It can be used as
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The Steve Burns Ribbon technical indicator is a new tool for the technical analysis of stock trends by combining key moving averages. The MA Ribbon by Steve Burns is currently available on the TrendSpider.com charting platform and can be searched in indicators and loaded onto charts. The moving averages in the Steve Burns Ribbon can
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Technical analysis indicators derive their readings by applying a formula to a series of price data on a chart. The historical price data used can include samples of the opening price as well as the high and low or closing price over a specified time period. Different technical indicators will use different types of price
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A technical indicator/price action divergence happens if a momentum indicator like the MACD (moving average convergence divergence), doesn’t show the same movement to higher highs or lower lows that price action does to confirm momentum. If the price on the chart makes a new high price but the MACD does not make a higher high
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Technical analysis is the art and science of reading price action on a chart. Here is a quick reference guide that can be used as a cheat sheet. A range bound market can be identified by horizontal upper resistance and horizontal lower support. When price breaks out of a trading range it can signal the
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Moving averages are technical trading tools for capturing trends in the stock market. Moving averages are price action filters that can identify a trend by which side of a moving average price is trading on. A vertical moving average can show that a chart is in a trend while a horizontal moving average can show
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The RSI (Relative Strength Indicator) is a is a momentum oscillator that measures the speed and change of price movements. The RSI moves in a bounded range between zero and 100. I use the RSI on the (14) setting on the daily chart. The RSI is generally overbought when its reading is above 70 and oversold
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Moving averages are the best indicators for the direction of a trend because of their power and simplicity to smooth out price direction in trend trading. They create lines on your charts to filter out the daily trading ranges and show the true direction a market is going in for a specific time frame. When
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This is a Guest Post by @TrendSpider and originally appeared on their TrendSpider Blog. Of all the ideas and strategies that have evolved throughout the history of trading, the trend has been the one that has stood the test of time. It is unclear who first said it, but “The Trend is Your Friend” has
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