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Moving averages are trend-following indicators that smooth out price action by creating a constantly updated average price over a specific period, appearing as lines directly on the price chart as upper indicators. These versatile tools serve multiple purposes – identifying trend direction, providing dynamic support and resistance levels, and generating trading signals through crossovers. For … Read more
Rate of Change (ROC) is a pure momentum oscillator that measures the percentage change in price between the current period and a specified number of periods ago, displayed as a line oscillating around zero in a lower indicator panel. Unlike other momentum indicators that use complex calculations, ROC’s simplicity is its strength – it directly … Read more
Chaikin Money Flow (CMF) is a volume-weighted oscillator that measures the accumulation and distribution of a stock over a specified period, appearing as a line fluctuating above and below zero in a lower indicator panel. Created by Marc Chaikin, CMF reveals whether institutional money is flowing into (accumulation) or out of (distribution) a stock by … Read more
Money Flow Index (MFI) is a momentum oscillator that incorporates both price and volume to measure buying and selling pressure, appearing as a line oscillating between 0 and 100 in a lower indicator panel. Often called the volume-weighted RSI, MFI improves upon traditional RSI by considering not just price movement but the volume behind those … Read more
Williams %R is a momentum oscillator that measures where the current price sits relative to the highest high over a lookback period, displayed as a negative-scaled indicator in a lower panel ranging from 0 to -100. Created by Larry Williams, this indicator is essentially an inverse, faster-reacting version of the Stochastic oscillator, making it particularly … Read more
The Commodity Channel Index (CCI) is a versatile momentum oscillator that measures how far price has deviated from its statistical average, appearing as a line oscillating around zero in a lower indicator panel. Despite its name suggesting commodities only, CCI works excellently for stocks and ETFs, identifying when price has moved too far too fast … Read more
On Balance Volume (OBV) is a cumulative volume indicator that adds volume on up days and subtracts volume on down days, creating a running total that appears as a line in a lower indicator panel. Developed by Joe Granville in 1963, OBV operates on the principle that volume precedes price – smart money quietly accumulates … Read more
Average True Range (ATR) is a volatility indicator that measures the average price movement over a specified period, appearing as a single line in a lower indicator panel below the price chart. Unlike implied volatility which shows market expectations, ATR reveals actual historical price movement, making it invaluable for setting realistic strike prices and stop … Read more
Volume is the most fundamental market indicator, showing the total number of shares traded during a specific period and appearing as vertical bars in a lower indicator panel beneath the price chart. Unlike other technical indicators that derive from price calculations, volume represents actual market activity – real money changing hands between buyers and sellers. … Read more
The Stochastic Oscillator is a momentum indicator that shows where the current price sits relative to the high-low range over a specific period, helping identify overbought and oversold conditions. As a lower indicator displayed below the price chart, the Stochastic oscillates between 0 and 100, with readings above 80 indicating overbought conditions and below 20 … Read more