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Technical Indicators

Published: Friday, 16 October 2020

There are 80 popular technical indicators provided with Alpha Trader. These technical indicators help users to analyze the charts.

Adding Technical indicator

The available technical indicators in Alpha Trader are as follows:

Simple Moving Average

The Simple Moving Average is simply an average of values over a specified period of time. A moving average is most often used to average values for a smoother representation of the underlying price or indicator.

Exponential Moving Average

An Exponential Moving Average is similar to a Simple Moving Average. An EMA is calculated by applying a small percentage of the current value to the previous value. An EMA applies more weight to recent values.

Time Series Moving Average

A Time Series Moving Average is similar to a Simple Moving Average, except that values are derived from linear regression forecast values instead of raw values.

Triangular Moving Average

The Triangular Moving Average is similar to a Simple Moving Average, except that more weight is given to the price in the middle of the moving average periods.

Variable Moving Average

A Variable Moving Average is an exponential moving average that adjusts to volatility.

VIDYA Moving Average

VIDYA (Volatility Index Dynamic Average), developed by Chande, is a moving average derived from linear regression R2. As VIDYA is a derivative of linear regression, it quickly adapts to volatility.

Welles Wilder Smoothing

Wilder’s Smoothing indicator was developed by Welles Wilder and mentioned in his book” NewConcepts in Technical Trading”. Wilder used the Smoothing indicator as a component in several of his other indicators including the RSI. Wilder’s Smoothing indicator can be used in the same capacity as other moving averages. The smoothing indicator is used as an input in Wilder’s other indicators such as the RSI, Wilder’s Swing Indicator, and Wilder’s Volatility Indicator.

Weighted Moving Average

A Weighted Moving Average places more weight on recent values and less weight on older values.

Williams %R

Williams’ %R measures overbought/oversold levels. The most widely used method for interpreting William’s %R is to buy when the indicator rises above 80 or sell when the indicator falls below 20.

Williams Accumulation Distribution

The Accumulation/Distribution indicator shows a relationship between price and volume. When the indicator is rising, the security is said to be accumulating. Conversely, when the indicator is falling, the security is said to be distributing. Prices may reverse when the indicator converges with the price.

Volume Oscillator

The Volume Oscillator shows a spread of two different moving averages of volume over a specified period of time. The Volume Oscillator offers a clear view of whether or not volume is increasing or decreasing.

Vertical Horizontal Filter

The Vertical Horizontal Filter (VHF) identifies whether a market is in a trending or choppy movement phase. The VHF indicator is most commonly used as an indicator of market volatility. It is also frequently used as a component for other technical indicators.

Ultimate Oscillator

The Ultimate Oscillator compares prices with three oscillators, using three different periods for calculations. The most popular interpretation of the Ultimate oscillator is price/indicator divergence.

True Range

The Average True Range (Wilder) measures market volatility. High ATR values may signal market bottoms, and low ATR values may signal neutral markets.

TRIX

TRIX is a momentum oscillator that shows the rate of change of an exponentially averaged closing price. The most common interpretation of the TRIX oscillator is to buy when the oscillator rises and sell when the oscillator falls. 3, 8, and 14-period moving averages are often used to smooth the TRIX oscillator.

Rainbow Oscillator

The Rainbow Charts indicator is a trend-following indicator. It is based on a two-period simple moving average. Over that, recursive smoothing is applied to the original MA (moving average) to create nine additional moving averages, each being based on the previous MA. Through a process of repetitive smoothing, the result obtained is a full spectrum of trends, which plotted on a chart with continuous colors, have the appearance of a rainbow. The Rainbow Oscillator Indicator is, like the Rainbow Charts, an indicator used to follow trends and its graph is plotted based on the same calculations made to find the Rainbow Charts. The oscillator is a derivative from a consensus of the Rainbow Charts trends, defining the highest high value and lowest low value among those moving averages, and creates an oscillator and bandwidth lines according to those calculations.

Price Oscillator

The Price Oscillator shows a spread of two moving averages. The Price Oscillator is basically a moving average spread. Buying usually occurs when the oscillator rises, and conversely, selling usually occurs when the oscillator falls.

Parabolic SAR

Parabolic SAR (SAR) is a time and price technical analysis tool primarily used to identify points of potential stops and reverses. In fact, the SAR in Parabolic SAR stands for "Stop and Reverse". The indicator's calculations create a parabola which is located below price during a bullish trend and above price during a bearish Trend.

Momentum Oscillator

The momentum indicator calculates the change over a specified length of time as a ratio. Increasingly high values of the momentum oscillator may indicate that prices are trending strongly upwards. The momentum oscillator is closely related to the MACD and Price Rate of Change (ROC).

MACD

The MACD is a moving average oscillator that shows potential overbought/oversold phases of market fluctuation. The MACD is a calculation of two moving averages of the underlying price/indicator.Buy/Sell interpretations may be derived from crossovers (calculated from the Signal/Periods argument), overbought/oversold levels of the MACD, and divergences between MACD and actual price.

Ease of Movement

The Ease of Movement oscillator shows a unique relationship between price change and volume. The Ease of Movement oscillator rises when prices are trending upwards under low volume, and likewise, the Ease of Movement oscillator falls when prices are trending downwards under low volume.

Directional Movement System

Directional Movement System (DMS) is composed of 3 indicators: Negative directional indicator (DI-): Negative directional indicator (DI-) is a component of the average directional index (ADX). If DI- is sloping forward, it is a signal that the downtrend is increasing. Positive directional indicator (DI+): Positive directional indicator (DI+) is a component of the average directional index (ADX). If DI+ is sloping upward, it is a signal that the uptrend is increasing. Average directional index (ADX): Average Directional Index (ADX) was created by J. Welles Wilder indicator of trend strength.

Detrended Price Oscillator

The Detrended Price Oscillator is used when long-term trends or outliers must be removed from prices or index indicators. This indicator is often used to supplement a standard price chart. Other indicators can be plotted over the Detrended Price Oscillator.

Chande Momentum Oscillator

The Chande Momentum Oscillator (Chande) is an advanced momentum oscillator derived from linear regression. Increasingly high values of CMO may indicate that prices are trending strongly upwards. Conversely, increasingly low values of CMO may indicate that prices are trending strongly downwards.CMO is related to the MACD and Price Rate of Change (ROC).

Chaikin Volatility

The Chaikin Volatility Oscillator is a moving average derivative of the Accumulation/Distribution index. The Chaikin Volatility Oscillator adjusts with respect to volatility, independent of long-term price action.

Aroon

The Aroon indicator is used to define if a currency-trading price is following a trend or sideways and to measure the trend's strength. If the currency's trading price is going up, the end of this period will be closer, and on the contrary. The Aroon indicator shows in percent how much time passed between the up (highest) and down (lowest) close starting from the beginning of a period.

Aroon Oscillator

In the Aroon Oscillator, the positive value shows a coming or an upward trend, and the negative value indicates a downward trend. When the absolute value of an oscillator becomes higher, an indication of a trend is also getting stronger.

Linear Regression

Linear Regression R-SquaredLinear Regression ForecastLinear Regression SlopeLinear Regression InterceptLinear regression is a common statistical method used to forecast values using least-squares fit. The result for Linear Regression has four Field objects: “R-Squared”, “Forecast”, “Slope” and “Intercept”.Where R-Squared is the coefficient of determination, Forecast is the linear regression forecasted value for the next period, Slope is the slope value for the periods being analyzed and Intercept is the end periods Y-intercept value.

Price Volume Trend

The Price and Volume Trend index is closely related to the On Balance Volume index. The price and volume trend index generally precedes actual price movements. The premise is that well-informed investors are buying when the index rises and uninformed investors are buying when the index falls.

Performance Index

The Performance indicator calculates price performance as a normalized value or percentage. A performance indicator shows the price of a security as a normalized value. If the Performance indicator shows 50, then the price of the underlying security has increased 50% since the start of the performance indicator calculations. Conversely, if the indicator shows –50, then the price of the underlying security has decreased 50% since the start of the Performance indicator calculations.

Commodity Channel Index

Commodity Channel Index (CCI) is a versatile indicator that can be used to identify a new trend or warn of extreme conditions. Lambert originally developed CCI to identify cyclical turns in commodities, but the indicator can successfully be applied to indices, ETFs, stocks, and other securities. In general, CCI measures the current price level relative to an average price level over a given period of time. CCI is relatively high when prices are far above their average. CCI is relatively low when prices are far below their average. In this manner, CCI can be used to identify overbought and oversold levels.

Chaikin Money Flow

Developed by Marc Chaikin, Chaikin Money Flow measures the amount of Money Flow Volume over a specific period. Money Flow Volume forms the basis for the Accumulation Distribution Line. Instead of a cumulative total of Money Flow Volume, Chaikin Money Flow simply sums Money Flow Volume for a specific look-back period, typically 20 or 21 days. The resulting indicator fluctuates above/below the zero lines just like an oscillator. Chartists weigh the balance of buying or selling pressure with the absolute level of Chaikin Money Flow. Chartists can also look for crosses above or below the zero line to identify changes in money flow.

Weighted Close

The Weighted Close indicator is simply an average of each day's price. It gets its name from the fact that extra weight is given to the closing price. The Median Price and Typical Price are similar indicators. 

Volume ROC

The Volume Rate of Change indicator shows clearly whether or not volume is trending in one direction or another. Sharp volume ROC increases may signal price breakouts.

Typical Price

A Typical Price is simply an average of one period’s high, low, and close values. A Typical Price is often used as an alternative way of viewing price action, and also as a component for calculating other indicators.

Standard Deviation

Standard Deviation is a common statistical calculation that measures volatility. Other technical indicators are often calculated using Standard Deviation. Major highs and lows often accompany extreme volatility. High values of Standard Deviation indicate that the price or indicator is more volatile than usual.

Price ROC

The Price ROC shows the difference between the current price and the price one or more periods in the past. A 12-day Price ROC is most often used as an overbought/oversold indicator.

Median Price

A Median Price is simply an average of one period’s high and low values. A Median Price is often used as an alternative way of viewing price action, and also as a component for calculating other indicators.

High Minus low

Return the high price minus the low price.

Bollinger Bands

Bollinger Bands are similar in comparison to moving average envelopes. Bollinger Bands are calculated using standard deviations instead of shifting bands by a fixed percentage. Bollinger Bands (as with most bands) can be imposed over an actual price or another indicator. When prices rise above the upper band or fall below the lower band, a change in direction may occur when the price penetrates the band after a small reversal from the opposite direction.

Fractal Chaos Band

Fractal Chaos Bands indicator helps us to identify whether the stock market is trending or not. When a market is trending, the bands will have a slope and if the market is not trending the bands will flatten out. As the slope of the band decreases, it signifies that the market is choppy, insecure, and variable. As the graph becomes more and more abrupt, be it going up or down, the significance is that the market becomes trendy, or stable. Fractal Chaos Bands indicator is used similarly to other bands-indicator(Bollinger bands for instance), offering trading opportunities when price moves above or under the fractal lines.

High/Low Bands

High Low Bands consist of triangular moving averages calculated from the underlying price, shifted up and down by a fixed percentage, and include a median value. When prices rise above the upper band or fall below the lower band, a change in direction may occur when the price penetrates the band after a small reversal from the opposite direction.

Moving Average Envelope

Moving Average Envelopes consist of moving averages calculated from the underlying price, shifted up and down by a fixed percentage. Moving Average Envelopes (or trading bands) can be imposed over an actual price or another indicator. When prices rise above the upper band or fall below the lower band, a change in direction may occur when the price penetrates the band after a small reversal from the opposite direction. 

Swing Index

The Swing Index (Wilder) is a popular indicator that shows comparative price strength within single security by comparing the current open, high, low, and close prices with previous prices. The Swing Index is a component of the Accumulative Swing Index.

Accumulative Swing Index

The Accumulative Swing Index (Wilder) is a cumulative total of the Swing Index. The Accumulative SwingIndex may be analyzed using technical indicators, line studies, and chart patterns, as an alternative viewof price action.

Comparative RSI

The Comparative Relative Strength index divides one price field by another price field. The base security is outperforming the other security when the Comparative RSI is trending upwards.

Mass Index

The Mass Index identifies price changes by indexing the narrowing and widening change between high and low prices. According to the inventor of the Mass Index, reversals may occur when a 25-periodMass Index rises above 27 or falls below 26.5.

Money Flow Index

The Money Flow Index measures the money flow of security, using volume and price for calculations. The market bottom below 20 and top above 80. The divergence of price and Money Flow Index is also used.

Negative Volume Index

The Negative Volume Index shows focus on periods when volume decreases from the previous period. The interpretation of the Negative Volume Index is that well-informed investors are buying when the index falls and uninformed investors are buying when the index rises.

On Balance Volume

The On Balance Volume indicator shows a relationship between price and volume as a momentum index. On Balance Volume index generally precedes actual price movements. The premise is that well-informed investors are buying when the index rises and uninformed investors are buying when the index falls.

Positive Volume Index

The Positive Volume Index shows focus on periods when volume increases from the previous period. The interpretation of the Positive Volume Index is that many investors are buying when the index rises and selling when the index falls.

Relative Strength Index

The RSI (Wilder) is a popular indicator that shows comparative price strength within single security. 9,14 and 25 period RSI calculations are the most popular. The most widely used method for interpreting the RSI is price/RSI divergence, support/resistance levels, and RSI chart formations.

Trade Volume Index

The Trade Volume Index shows whether a security is being accumulated or distribute (similar to theAccumulation/Distribution index). When the indicator is rising, the security is said to be accumulating. Conversely, when the indicator is falling, the security is said to be distributing. Prices may reverse when the indicator converges with the price.

Stochastic Oscillator

The Stochastic Oscillator is a popular indicator that shows where a security’s price has closed in proportion to its closing price range over a specified period of time. The Stochastic Oscillator has two components: %K and %D. %K is most often displayed as a solid line and %D is often shown as a dotted line. The most widely used method for interpreting the Stochastic Oscillator is to buy when either component rises above 80 or sell when either component falls below 20. Another way to interpret the Stochastic Oscillator is to buy when %K rises above %D, and conversely, sell when %K falls below %D.

Stochastic Momentum Index

Commonly abbreviated to SMI, the Stochastic Momentum Index is an advancement in the Stochastic Oscillator. Stochastic Oscillator is primarily used to calculate the distance between the current close and recent high/low range for n-period. Stochastic Momentum Index shows the distance of the current close relative to the center of high/low range. SMI is reasonably less unpredictable than the Stochastic Oscillator over a single period. SMI normally ranges between +100 and -100. Stochastic Momentum Oscillator is used in conjunction with the Tushar Chande Momentum Oscillator.

Fractal Chaos Oscillator

When looking at price movement charts, if the time scale is not given, sometimes it’s very hard to determine whether the bars in the chart are referring to hours, days, or months. The chart always looks exactly the same regardless of its time resolution, with the only difference being the size. To examine these patterns the Fractal Chaos Oscillator can be used to determine what is happening in the current level of resolution. Fractal Chaos Oscillator is a great indicator to use in intra-day trading.

Prime Number Oscillator

This indicator finds the nearest prime number from either the top or bottom of the series and plots the difference between that prime number and the series itself. This indicator can be used to spot market turning points. When the oscillator remains at the same high point for two consecutive periods in the positive range, consider selling. When the oscillator remains at a low point for two consecutive periods in the negative range, consider buying.

Prime Number Bands    

This indicator finds the nearest prime number for the high and low and plots the two series as bands. This indicator can be used to spot market-trading ranges.

Historical Volatility

“Volatility” is an important term used in the stock markets and by many market professionals. Many investors use this term to manage their risk. “Volatility”, in simpler terms, means the fluctuation in a stock's or any other underlying price, over a specific period of time. Volatility is divided into two categories. The first one is “Historical volatility” and the other one is “Implied volatility”. “Historical volatility” is defined as the historical fluctuation in a particular underlying price, whereas “Impliedvolatility” is the estimation of volatility in an asset’s price. Generally, “Implied volatility” finds extensive use in “Options”.Understanding “Historical volatility” is important for many investors as well as traders. For investors, this term is important, because it helps in estimating or calculating their risk. Traders, generally use“Historical volatility” to know how volatile stock or an index will be in the future.

MACD Histogram

MACD Histogram measures the distance between MACD and its signal line (the 9-day EMA of MACD). Like MACD, the MACD-Histogram is also an oscillator that fluctuates above and below the zero lines. It anticipates signal line crossovers in MACD. Because MACD uses moving averages and moving averages lag price, signal line crossovers can come late and affect the reward-to-risk ratio of a trade. Bullish or bearish divergences in the MACD-Histogram can alert chartists to an imminent signal line crossover in MACD.

Elder Ray Bull Power

Elder Ray Bull Power uses a 13-day exponential moving average (EMA) to indicate the consensus market value.

Elder Ray Bear Power

Bear Power is derived by subtracting the 13-day EMA from the day’s low. Where a currency downtrend is sustained to the point that minimum prices move below the EMA the Bear Power histogram will be less than zero. As price minimums accelerate to lower levels (below the EMA) during the falling trend histogram bars will increase in height below the zero lines showing increased selling strength during the period.

Elder Force Index

Elder's Force Index (EFI) measures the power behind a price movement using price and volume. The indicator can also be used to identify potential reversals and price corrections. The EFI is an oscillator that fluctuates between positive and negative values, above and below a zero line.

Elder thermometer

The Market Thermometer translates market activity into a "hot" and "cold" histogram for better visualization. 

Ehler Fisher Transform

It was designed to identify major price reversals with its rapid response time and sharp, clear turning points. The assumption is that prices do not have a Gaussian probability density function (bell-shaped curve movement), but by normalizing price and applying the Fisher Transform user could create a nearly Gaussian curve.

Keltner Channel

The Keltner Channel is a moving average band indicator whose upper and lower bands adapt to changes in volatility by using the average true range. The Keltner Channel is used to signal price breakouts, show trends, and give overbought and oversold readings. 

Market Facilitation Index

Market Facilitation Index Technical Indicator (MFI) is the indicator that shows the change of price for one tick. Absolute values of the indicator do not mean anything as they are, only indicator changes have sense.

Schaff Trend Cycle

The Schaff Trend Cycle Indicator is the product of combining Slow Stochastics and the Moving AverageConvergence/Divergence (MACD). The MACD has a reputation to be a trend indicator, yet it has an equal reputation to be lagging due to its slow responsive signal line. The improved signal line gives the STC its relevance as an early warning sign to detect currency trends.

QStick

A technical indicator developed by Tushar Chande to numerically identify trends in candlestick charting. It is calculated by taking the 'n' period moving average of the difference between the open and closing prices. If Qstick value is greater than zero means that the majority of the last 'n' days have been up, indicating that buying pressure has been increasing.

STARC

STARCbands (Stoller Average Range Channels) are three bands forming a channel around a simple moving average. The indicator is similar to Bollinger Bands; STARC bands are narrowing on the flat markets and widening on the volatile markets. However, STARC bands do not measure the highness and lowness of the price and do not take into account the standard deviation as Bollinger Bands. It is calculated by means of AverageTrue Range (ATR) providing more detailed information on market volatility. Using STARC bands period10 is an optimum parameter for ATR. This indicator has two functions. First, it is used as a signal which recommends opening buy or sell deals when the price crosses the borders of STARC bands. In this case, one should wait till the price consolidates above or under the STARC bands, and stop-loss should be placed after the median line. Second, the STARC indicator can be used as an indicator of whether the price is oversold or overbought. In order to do it index K should be moved from 3 to 1.33. In this case test of the price of STARC bands means the price has reached extreme values; the probability of price swing is very high. This signal should be accompanied by signals of oscillators pointing out oversold/overbought areas (for example, RSI indicator).

Center of Gravity

The Center of Gravity is an oscillator developed by John Ehler and presented in Stocks & Commoditiesmagazine (05.2002). This oscillator produces almost zero lag indicating the pivot points with precise accuracy. The indicator was the result of studies of adaptive filters.

Coppock Curve

The Coppock curve is a long-term price momentum indicator used primarily to recognize major bottoms in the stock market. Most technical market analysts consider the Coppock curve to be an excellent tool for discriminating between bear market rallies and true bottoms in the stock market. The indicator was designed for use on a monthly time scale and is calculated as a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change for the index.

Chande Forecast Oscillator

The oscillator is above the zero points if the forecast price is higher than the current price. On the contrary, if it is below it turns out to be less than zero. When the forecast price and the current price are equal, the oscillator makes a zero. Current prices that are constantly over the forecast price suggest higher prices ahead and prices that are constantly under the forecast price suggest lower prices ahead.

Gopalakrishnan Range Index

The Gopalakrishnan Range Index (GAPO) by JayanthiGopalakrishnan quantifies the variability in stock, based on the logarithm of the trading range over an N-day period (default 5 days).

Random Walk

The basis of Random Walk Indicator is a theory of the shortest path from one point to another. In case the prices stay too far from the line traced for a period, then the movement efficiency is considered to be minimal. Highly random movement creates considerably fluctuating RWI. The number of periods, recommended by effective RWI applying is from 2 to 7 for the short term, whether the long- term requires from 8 to 64 periods. It is done to show the short-term fluctuations and long-term trends. RWI peaks in the short term indicate with the price highs, whether its bottom describes price decline.

Intraday Momentum Index

The IMI (intraday momentum index) is a ratio of the total magnitude of the Up day candle bodies to the total magnitude of the Down day candle bodies over the past x-days. An up day candle body is white and is the close minus the open for a particular day. A down day candle body is black and is the open minus the close for a particular day. So if users see a lot of consecutive long white candle bodies and only a few short black body candle bodies on a stock chart then the IMI will be high (perhaps near 100%). The 'IMI' indicator is used in indicator formula construction to narrow the stock pre-screener results to include only those stocks that have an IMI restricted to the parameters set for the IMI indicator.

Kinger Volume Oscillator

A technical indicator developed by Stephen Klinger that is used to determine long-term trends of money flow while remaining sensitive enough to short-term fluctuations to enable a trader to predict short-term reversals. This indicator compares the volume flowing in and out of security to price movement, and it is then turned into an oscillator.

Pretty Good Oscillator

The Pretty Good Oscillator measures the distance of the current close from its N-day simple moving average, expressed in terms of an average true range over a similar period.

RAVI (Range Action Verification Index)

RAVI indicator, developed by Tushar Chande, can be used to identify whether the market is trending. It calculates the percentage difference between current prices and older prices. Current prices are represented by a Short SMA, and the longer time frame by a Long SMA. Tushar Chande recommends the following information lines for the indicator: plus-minus 0.3% or 0.1% (depending on the market).

Twiggs Money Flow

The main idea behind the TMF indicator is to evaluate volume (money flow) as bullish or as bearish based on a close price location. Chaikin Money Flow uses CLV (Close Location Value) to do it. TwigsMoney Flow, on the other hand, uses TR (True Range). Another main difference is that CMF uses cumulative volume (sum of volumes over a specified period) and the TMF applies Moving average to the volume.


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