This index covers all technical indicators available to Symbolik® BASIC subscribers. Resources for add-on studies can be found separately for those subscribers who have access.
Accumulation / Distribution Oscillator (ADO)
Accumulation Distribution, also known as Accumulation Distribution Oscillator (ADO), calculates the implied direction for each trading period. A value of 100 indicates opening at the low and closing at the high, while a value of 0 occurs when opening at the high and closing at the low. Changes in the ADO direction can signal potential trend shifts before they occur.
Components
- ADO (Accumulation Distribution Oscillator): The ADO takes into account the relationship between the closing price and the trading range of a security over a specified period. It helps in identifying the accumulation or distribution of a security.
- Signal: The Signal line is the Moving Average of the ADO line.
- Overbought: The overbought level for the Accumulation Distribution indicator. A value above this level may indicate a potential reversal or decrease in buying pressure.
- Oversold: The oversold level for the Accumulation Distribution indicator. A value below this level may suggest a potential reversal or decrease in selling pressure.
Parameters
- Period: The time period used in calculating the Signal line (which the Moving Average of the ADO line). The default is 5.
- MA Type (Moving Average Type): The type of moving average used in the calculating the Signal Line. The default is "Simple".
- Overbought: The threshold level used to define overbought conditions. The default is 70.
- Oversold: The threshold level used to define oversold conditions. The default is 30.
Interpretation and Usage
- Overbought and Oversold Conditions: Similar to other momentum oscillators, such as the RSI, overbought and oversold conditions can be identified using the Accumulation Distribution indicator. When the ADO moves to extreme levels, it suggests that the market may be overbought or oversold, potentially signaling a reversal in price direction.
- Divergence: Divergence between price and the ADO can indicate potential trend reversals. Bullish divergence occurs when prices make lower lows while the ADO forms higher lows, suggesting underlying buying pressure. Conversely, bearish divergence occurs when prices make higher highs while the ADO forms lower highs, indicating underlying selling pressure.
- Confirmation with Volume: Traders often look for confirmation between the ADO and volume. An increase in ADO accompanied by rising volume can strengthen bullish signals, while decreasing ADO with decreasing volume may reinforce bearish signals.
Accumulative Swing Index
The Accumulative Swing Index (ASI) is a cumulative total of the Swing Index, which attempts to quantify the real price changes in a security, adjusting for gapping and possible price reversals.
Components
- Accumulative Swing Index: The ASI represents the cumulative sum of the Swing Index values.
Parameters
- Limit Move: A parameter that adjusts the sensitivity of the ASI to price changes. The default is set to 1.
Interpretation and Usage
- Trend Identification: The ASI is primarily used to identify the underlying trend in a security's price movement. Positive ASI values suggest an uptrend, while negative values indicate a downtrend. Traders may look for crossovers of the ASI line with zero to confirm trend changes.
- Reversal Signals: Extreme values in the ASI, especially when coupled with divergence from price action, can signal potential trend reversals. For example, a sharp decrease in the ASI from positive to negative territory may indicate a shift from bullish to bearish sentiment.
- Confirming Breakouts: Traders often use the ASI to confirm breakouts from consolidation patterns. A breakout accompanied by rising ASI values may suggest a strong bullish continuation, while declining ASI values during a breakout may indicate weak follow-through and potential reversal.
ALMA
Arnaud Legoux Moving Average (ALMA) is a type of moving average that incorporates both price action and volatility into its calculation, providing a smoother trendline compared to traditional moving averages.
Components
- ALMA: The ALMA line which represents the smoothed moving average.
Parameters
- Period: The time period used in calculating the ALMA. The default is 9.
- Price: The data field used in calculating ALMA. The default is the Close.
- Sigma: A parameter that determines the responsiveness of ALMA to price changes, typically set to 6.
- Offset: A parameter that adjusts the displacement of the ALMA line, typically set to 0.85.
Interpretation and Usage
- Trend Following: ALMA is often used as a trend-following indicator due to its ability to provide smooth signals in trending markets. Traders may consider entering long positions when the price is above the ALMA line in an uptrend and short positions when the price is below the ALMA line in a downtrend.
- Support and Resistance: Like traditional moving averages, ALMA can act as dynamic support and resistance levels. Traders may look for bounces or breakthroughs of the ALMA line as potential entry or exit points, respectively.
- Filtering Noise: ALMA's responsiveness to both price action and volatility helps filter out market noise, making it useful for identifying significant price movements amidst choppy trading conditions.
Aroon Oscillator
The Aroon Oscillator is used to identify the strength of a trend and the likelihood of a trend reversal. It is based on the Aroon Indicator, which consists of two lines: Aroon Up and Aroon Down. The Aroon Oscillator is derived from the difference between these two lines.
Components
- Aroon Up: Measures the number of periods since the highest high within a specified period.
- Aroon Down: Measures the number of periods since the lowest low within a specified period.
- Aroon Oscillator: Calculated as the difference between Aroon Up and Aroon Down. The oscillator fluctuates between -100 and 100.
Parameters
- Period: the number of periods used to calculate the Aroon Oscillator. The default is typically 10 periods.
- Up Price: the data field used in calculating the Aroon Oscillator. The default is the High.
- Down Price: the data field used in calculating the Aroon Oscillator. The default is the Low.
Interpretation and Usage
- Trend Strength: When the Aroon Oscillator is positive, it indicates that the Aroon Up line is above the Aroon-Down line, suggesting a bullish trend. Conversely, when the Aroon Oscillator is negative, it suggests a bearish trend. The magnitude of the oscillator value can provide insights into the strength of the trend.
- Trend Reversals: Some traders use the Aroon Oscillator to identify potential trend reversals. For example, when the oscillator crosses above zero from below, it may signal a potential bullish reversal, while a cross below zero from above may indicate a potential bearish reversal.
- Divergence: Similar to other oscillators, traders may look for divergence between price action and the Aroon Oscillator. Bullish divergence occurs when the price forms a lower low, but the Aroon Oscillator forms a higher low, suggesting weakening downward momentum and a potential bullish reversal. Conversely, bearish divergence occurs when the price forms a higher high, but the Aroon Oscillator forms a lower high, indicating weakening upward momentum and a potential bearish reversal.
- Overbought and Oversold Conditions: While the Aroon Oscillator does not have predefined overbought and oversold levels like other oscillators, extreme values (closer to 100 or -100) may suggest that a trend is becoming overextended and due for a reversal.
Average Directional Index (ADX)
The Average Directional Index (ADX) is a technical indicator used to measure the strength and direction of a trend, regardless of whether it is up or down.
Components
- Average Directional Index (ADX): The ADX line represents the strength of the trend, with higher values indicating a stronger trend.
- Overbought: The level above which the ADX is considered overbought, suggesting that the current trend may be nearing exhaustion.
- Oversold: The level below which the ADX is considered oversold, suggesting that the current trend may be weak or losing momentum.
Parameters
- Period: The number of periods used in calculating the ADX. The default is 14.
- Overbought: The threshold level used to define overbought conditions. The default is 40.
- Oversold: The threshold level used to define oversold conditions. The default is 10.
Interpretation and Usage
- Trend Strength: ADX values above 25 are typically considered indicative of a strong trend, whether it's bullish or bearish. Values below 20 usually suggest a weak or sideways trend.
- Directional Movement: ADX can also be used in conjunction with the Directional Movement Index (DMI) to determine the direction of the trend. When the +DI line is above the -DI line and the ADX is rising, it suggests a bullish trend. Conversely, when the -DI line is above the +DI line and the ADX is rising, it suggests a bearish trend.
- Overbought and Oversold Conditions: Extreme levels of ADX can indicate overbought or oversold conditions, suggesting that a trend may be due for a reversal or pullback.
Average True Range (ATR)
The Average True Range (ATR) is a technical indicator used to measure market volatility by calculating the exponential average of the "true" price range of a security over a specified period. The “true range” is the greatest of these three choices:
- Today’s high minus today’s low
- The absolute value of today’s high minus yesterday’s close
- The absolute value of today’s low minus yesterday’s close
Components
- ATR: The ATR line represents the average true range of price movement over the specified period.
Parameters
- Period: The number of periods used in calculating the ATR. The default is 5.
- MA Type: The type of moving average used in the calculation of the ATR. The default is set to "Exponential".
Interpretation and Usage
- Volatility Measurement: ATR quantifies the volatility of a security, with higher ATR values indicating greater volatility and lower values indicating lower volatility.
- Trading Range: Traders often use ATR to set stop-loss orders and profit targets based on the current volatility of the market. Larger ATR values may necessitate wider stop-loss orders to account for greater potential price fluctuations.
- Trend Confirmation: ATR can also be used to confirm trends, as increasing ATR values often accompany strong directional movements in price, while decreasing ATR values may indicate consolidation or weakening trends.
Awesome Oscillator
The Awesome Oscillator is a momentum indicator that compares a 5-period and 34-period simple moving average to generate trading signals.
Components
- Awesome Oscillator: The Awesome Oscillator line represents the difference between the 5-period and 34-period simple moving averages.
Parameters
- Period 1: The number of periods used in calculating the first moving average. The default is 5.
- Period 2: The number of periods used in calculating the second moving average . The default is 34.
Interpretation and Usage
- Bullish/Bearish Signals: The Awesome Oscillator generates buy signals when it crosses above the zero line and sell signals when it crosses below the zero line. Additionally, bullish divergence occurs when the Awesome Oscillator forms higher lows while prices form lower lows, suggesting potential upward price movement, and vice versa for bearish divergence.
- Trend Confirmation: Traders use the Awesome Oscillator to confirm trends. Increasing values of the Awesome Oscillator during an uptrend and decreasing values during a downtrend confirm the strength of the trend.
- Zero Line Crossings: Crossings of the Awesome Oscillator above or below the zero line indicate changes in momentum. Crossings above zero indicate increasing bullish momentum, while crossings below zero indicate increasing bearish momentum.
Balance Of Power
The Balance of Power (BOP) indicator measures the strength of buyers versus sellers in the market by comparing the closing price to the opening price within a specific period.
Components
- Balance Of Power (BOP): The BOP line represents the difference between the closing price and the opening price.
Parameters
- Period: The number of periods used in calculating the BOP. The default is 14.
- MA Type (Moving Average Type): The type of moving average used in the calculation of the BOP. The default is set to "Simple".
Interpretation and Usage
- Buyer/Seller Dominance: Positive BOP values indicate that buyers have dominated the market during the period, while negative values suggest that sellers have dominated. Traders may interpret changes in BOP values as shifts in market sentiment.
- Trend Confirmation: Traders may use BOP to confirm trends identified through other technical analysis methods. Increasing BOP values during an uptrend and decreasing values during a downtrend may confirm the strength of the trend.
- Divergence: Divergence between price action and BOP can signal potential reversals or continuations. For example, bullish divergence occurs when prices make lower lows while BOP forms higher lows, suggesting underlying buying pressure and a potential bullish reversal.
Bollinger Bands
Bollinger Bands are a technical analysis tool developed by John Bollinger in the 1980s. They consist of three lines plotted on a price chart: a simple moving average (SMA) in the middle, and an upper and a lower band that represent two standard deviations above and below the SMA. The standard deviation is a measure of the dispersion or volatility of a set of data points.
Components
- Mid Band (SMA): The middle line is typically a 20-day simple moving average (though the period can be adjusted based on the trader's preference and the timeframe being analyzed). The SMA represents the average price of the security over the specified period.
- Upper Band: the upper boundary of the Bollinger Bands and is typically set two standard deviations above the middle band. It provides an indication of the upper range of price volatility. When prices touch or exceed the upper band, it may signal that the asset is overbought.
- Lower Band: the lower boundary of the Bollinger Bands and is set two standard deviations below the middle band. It provides an indication of the lower range of price volatility. When prices touch or fall below the lower band, it may suggest that the asset is oversold.
- Bandwidth: a measure of the width of the Bollinger Bands. It quantifies the volatility of the price movement. Specifically, it calculates the percentage difference between the upper and lower bands relative to the middle band (SMA). A higher Bandwidth indicates greater price volatility, as the bands widen. Conversely, a lower Bandwidth suggests lower volatility, as the bands contract. Traders often use changes in Bandwidth to identify potential shifts in volatility.
- Percent B: quantifies the position of the current price relative to the Bollinger Bands. It represents where the current price is situated within the bands, expressed as a percentage. A value of 0 indicates that the price is at the lower band while a value of 100 indicates that the price is at the upper band. Percent B provides insights into the relative position of the current price within the bands. Traders often use Percent B to identify potential overbought or oversold conditions. For example, if Percent B is near 0, it may indicate that the price is oversold, while a value close to 100 may suggest that the price is overbought.
Parameters
- Period: the time period used in calculating the Middle Band (SMA). The default is 20.
- Price: the data field used in calculating the Middle Band (SMA). The default is the Close.
- Upper Band: the number of standard deviations used in calculating the Upper Band. The default is 2.
- Lower Band: the number of standard deviations used in calculating the Lower Band. The default is 2.
Interpretation and Usage
- Volatility Indicator: Bollinger Bands dynamically adjust to price volatility. During periods of high volatility, the bands widen, and during periods of low volatility, they contract. Traders often use this feature to assess the volatility of an asset. Wider bands indicate higher volatility, while narrower bands suggest lower volatility.
- Overbought and Oversold Conditions: Bollinger Bands can help identify potential overbought and oversold conditions in the market. When prices touch or exceed the upper band, it suggests that the asset may be overbought, and a reversal or pullback could occur. Conversely, when prices touch or fall below the lower band, it indicates that the asset may be oversold, and a reversal to the upside might be expected.
- Trend Confirmation: Traders often use Bollinger Bands to confirm trends. In an uptrend, prices tend to stay near the upper band, while in a downtrend, prices generally stay near the lower band. If prices consistently breach one band (upper or lower) over a sustained period, it may suggest the strength and direction of the trend.
- Entry and Exit Points: Some traders use Bollinger Bands to identify potential entry and exit points for trades. For example, a trader might enter a long position when the price touches the lower band in an uptrend, anticipating a bounce back toward the middle or upper band. Similarly, they might consider exiting a long position when the price touches or exceeds the upper band.
Candle Patterns
Candle patterns are formations created by one or more candlesticks on a price chart, often used by traders to predict future price movements.
Components
Bullish Candle Patterns
- Hammer: A bullish reversal pattern formed after a decline. It has a small body near the top of the candlestick and a long lower shadow. Indicates potential reversal of a downtrend.
- Hammer: A bullish reversal pattern formed after a decline. It has a small body near the top of the candlestick and a long lower shadow. Indicates potential reversal of a downtrend.
- Inverted Hammer: Similar to the Hammer but occurs after a downtrend. It has a small body near the bottom of the candlestick and a long upper shadow. Suggests a potential reversal of a downtrend.
- Harami Bullish: A two-candlestick pattern where the first candle is a large bearish candle followed by a smaller bullish candle. The second candle's body is completely engulfed by the body of the first candle. Indicates potential reversal of a downtrend.
- Engulfing Bullish: A two-candlestick pattern where the second candle's body completely engulfs the body of the first candle. The first candle is typically bearish, followed by a larger bullish candle. Signifies a strong reversal of a downtrend.
- Piercing Line: Consists of a long black candle followed by a white candle that opens below the low of the prior candle and closes more than halfway into the prior candle's body. Indicates a potential bullish reversal.
- Morning Star: A three-candlestick pattern where the first candle is bearish, the second candle is small, and the third candle is bullish and larger than the second candle. Suggests a potential reversal from a downtrend.
- Morning Doji Star: Similar to the Morning Star but with a Doji candle in the middle. The first candle is bearish, followed by a Doji, and then a bullish candle. Indicates a potential reversal from a downtrend.
Bearish Candle Patterns
- Hanging Man: A bearish reversal pattern formed after an uptrend. It has a small body near the top of the candlestick and a long lower shadow. Indicates potential reversal of an uptrend.
- Shooting Star: Similar to the Hanging Man but occurs after an uptrend. It has a small body near the bottom of the candlestick and a long upper shadow. Suggests a potential reversal of an uptrend.
- Dark Cloud Cover: A two-candlestick pattern where the first candle is bullish, followed by a bearish candle that opens above the high of the prior candle and closes more than halfway into the prior candle's body. Indicates a potential bearish reversal.
- Harami Bearish: A two-candlestick pattern where the first candle is a large bullish candle followed by a smaller bearish candle. The second candle's body is completely engulfed by the body of the first candle. Indicates potential reversal of an uptrend.
- Engulfing Bearish: A two-candlestick pattern where the second candle's body completely engulfs the body of the first candle. The first candle is typically bullish, followed by a larger bearish candle. Signifies a strong reversal of an uptrend.
- Evening Star: A three-candlestick pattern where the first candle is bullish, the second candle is small, and the third candle is bearish and larger than the second candle. Suggests a potential reversal from an uptrend.
Neutral Candlestick Patterns
- Double Doji: A two-candlestick pattern where both candles are Dojis, indicating indecision in the market. Often occurs during periods of consolidation or uncertainty.
Parameters
- Trend Period: The number of periods used to define the trend when identifying candlestick patterns. The default is 5.
- Range Period: The number of periods used to calculate the range for candlestick patterns. The default is 5.
Interpretation and Usage
- Pattern Recognition: Traders use candlestick patterns to identify potential reversals or continuations in price trends. Each pattern has specific criteria and implications for future price movements.
- Confirmation: Candlestick patterns are often used in conjunction with other technical indicators or chart patterns to confirm trading signals. Traders may wait for confirmation from volume or other indicators before taking action based on a candlestick pattern.
- Risk Management: Understanding candlestick patterns can help traders identify potential areas for placing stop-loss orders or profit targets based on the expected price movement indicated by the pattern.
Chaikin Money Flow
The Chaikin Money Flow (CMF) is a momentum oscillator that measures the volume-weighted average of accumulation and distribution over a specific period. Developed by Marc Chaikin, it aims to assess the buying and selling pressure behind a security's price movements by analyzing the relationship between closing prices and volume.
Components
- Chaikin Money Flow (CMF): The CMF line represents the main oscillator, calculated as the sum of accumulation and distribution volumes divided by the sum of volume over a specified period.
Parameters
- Period: The number of periods used in calculating the CMF. The default is 21.
- Upper Threshold: The threshold level above which the CMF is considered overbought. The default is 0.25.
- Lower Threshold: The threshold level below which the CMF is considered oversold. The default is -0.25.
Interpretation and Usage
- Buying and Selling Pressure: CMF values above zero indicate buying pressure, suggesting that the security is under accumulation. Conversely, negative CMF values suggest selling pressure, indicating distribution.
- Overbought and Oversold Conditions: Traders use upper and lower thresholds to identify extreme CMF levels. A CMF above the upper threshold may signal that the security is overbought, while a CMF below the lower threshold may suggest oversold conditions.
- Divergences: Divergences between CMF and price movements can signal potential trend reversals. For example, if the price makes new highs but the CMF fails to confirm these highs, it may indicate weakening buying pressure and a possible trend reversal.
Chande Momentum Oscillator
The Chande Momentum Oscillator (CMO) is a technical indicator used to measure the momentum of a security by comparing the current close price to the close price of a previous period.
Components
- Chande Momentum Oscillator (CMO): The CMO line represents the momentum of the security.
Parameters
- Price: The data field used in calculating the CMO. The default is the Close.
- Period: The number of periods used in calculating the CMO. The default is 14.
Interpretation and Usage
- Momentum: The CMO measures the velocity of a price move. Rising CMO values suggest increasing upward momentum, while falling values indicate increasing downward momentum.
- Overbought and Oversold Conditions: Extreme CMO values may indicate overbought or oversold conditions, suggesting potential reversals in price direction.
- Divergence: Divergence between price action and CMO can signal potential trend reversals. For example, bullish divergence occurs when prices make lower lows while CMO forms higher lows, indicating underlying buying pressure and a potential bullish reversal.
Chandelier Exit
The Chandelier Exit is a volatility-based indicator designed to help traders identify potential reversal points in a trending market.
Components
- Up: The upper Chandelier Exit line represents the trailing stop level for long positions.
- Down: The lower Chandelier Exit line represents the trailing stop level for short positions.
Parameters
- Period: The number of periods used in calculating the Chandelier Exit. The default is 14.
- Factor: A multiplier used to determine the distance of the Chandelier Exit from the highest high (for long positions) or lowest low (for short positions). The default is 3.
Interpretation and Usage
- Trailing Stops: The Chandelier Exit provides traders with dynamic trailing stop levels that adjust based on market volatility. As the price moves in the direction of the trend, the Chandelier Exit follows, providing protection against adverse price movements.
- Trend Reversals: Reversals in the trend may be signaled when the price crosses below the Chandelier Exit for long positions or above the Chandelier Exit for short positions. This suggests a potential change in market direction.
Choppiness Index
The Choppiness Index is a technical indicator designed to measure the market's trendiness or choppiness over a specified period.
Components
- Choppiness Index: The Choppiness Index line represents the degree of choppiness in the market.
Parameters
- Period: The number of periods used in calculating the Choppiness Index. The default is 50.
Interpretation and Usage
- Trendiness: Low values of the Choppiness Index indicate a trending market, while high values suggest a choppy or range-bound market.
- Trading Range: Traders may use the Choppiness Index to gauge the likelihood of breakouts or breakdowns from trading ranges. Periods of low choppiness may precede significant price movements.
- Volatility: Changes in the Choppiness Index may indicate shifts in market volatility. Decreasing values may precede periods of increased volatility, while increasing values may suggest a return to stability.
Commodity Channel Index (CCI)
The Commodity Channel Index (CCI) is a momentum oscillator developed by Donald Lambert and is used by traders to identify potential price trend reversals and market trends. The CCI measures the deviation of an asset's price from its statistical mean and normalizes the result using a constant, which allows traders to compare the results across different time frames and assets.
Components
- CCI: The CCI line represents the main oscillator, calculated as the difference between the asset's typical price and its simple moving average, normalized by the mean absolute deviation.
- Overbought: The level above which the CCI is considered overbought. The default is 100.
- Oversold: The level below which the CCI is considered oversold. The default is -100.
Parameters
- Period: The number of periods used in calculating the CCI. The default is 13.
Interpretation and Usage
- Overbought and Oversold Conditions: Traders use the CCI to identify extreme price levels that may indicate potential reversals. When the CCI moves above +100, it suggests that the price may be overextended to the upside and could experience a pullback. Conversely, when the CCI falls below -100, it indicates that the price may be oversold and could rebound.
- Trend Reversals: CCI divergences from price movements can signal potential trend reversals. For example, if the price makes new highs but the CCI fails to confirm these highs, it may indicate weakening bullish momentum and a possible trend reversal.
- Momentum Confirmation: Some traders use CCI crossovers above or below the zero line to confirm momentum changes. When the CCI crosses above zero, it suggests bullish momentum, while a crossover below zero indicates bearish momentum.
Congestion Count
The Congestion Count is a technical indicator used to identify trends and time trades. It works by counting the number of times that a stock's price has traded within a certain range, or "congestion zone," over a set period of time. By counting the number of times that a stock's price has traded within a congestion zone, traders can gain insight into the stock's trend and potential entry and exit points for trades.
Components
- Congestion Count: The Congestion Count line itself represents the count of bars within the congestion period.
Parameters
- Mode: Specifies the method used for calculating congestion. "Group" mode counts bars where the range (high minus low) is less than the average true range (ATR) over the specified lookback period.
- Lookback: The number of bars to consider when calculating congestion. The default is 100.
- Use True Range: Determines whether to use the true range or a fixed percentage range for congestion calculations. The default is On.
Interpretation and Usage
- Congestion Identification: The Congestion Count identifies periods where price movements are relatively small compared to recent volatility, indicating potential consolidation or congestion.
- Trading Range Breakouts: Traders may use the Congestion Count to anticipate breakouts from trading ranges. A significant increase in congestion count followed by a breakout may signal the beginning of a new trend.
Coppock Curve
The Coppock Curve is a momentum indicator developed by economist Edwin Coppock in the 1960s. It is used to identify long-term bullish market trends.
Components
- Coppock Curve: The Coppock Curve line represents the sum of a 14-month rate of change and an 11-month rate of change, smoothed by a 10-month weighted moving average (WMA).
Parameters
- Price: The data field used in calculating the Coppock Curve. The default is Close.
- MA Type: The type of moving average used in smoothing the rate of change values. The default is Weighted.
- MA Period: The period of the moving average used in smoothing the rate of change values. The default is 10.
- Rate Of Change1: The period for the first rate of change calculation. The default is 11.
- Rate Of Change2: The period for the second rate of change calculation. The default is 14.
Interpretation and Usage
- Long-Term Buy Signals: The Coppock Curve generates buy signals when it crosses above zero, indicating the start of a new bullish trend after a prolonged decline.
- Market Bottom Identification: The Coppock Curve is often used to identify major market bottoms, providing investors with opportunities to enter the market during favorable conditions.
- Confirmation with Price Action: Traders may look for confirmation signals, such as bullish candlestick patterns or bullish chart patterns, when the Coppock Curve generates a buy signal to increase confidence in the trade.
Derivative Oscillator
The Derivative Oscillator is a technical indicator that combines the Relative Strength Index (RSI) with exponential moving averages (EMAs) to generate trading signals.
Components
- Derivative Oscillator: The Derivative Oscillator line represents the difference between two EMAs of the RSI values.
Parameters
- RSI Period: The number of periods used in calculating the RSI. The default is 14.
- SMA Period: The period of the simple moving average used in smoothing the RSI values. The default is 9.
- EMA1 Period: The period of the first exponential moving average applied to the RSI values. The default is 5.
- EMA2 Period: The period of the second exponential moving average applied to the RSI values. The default is 3.
Interpretation and Usage
- Trend Reversals: The Derivative Oscillator generates buy signals when crossing above zero and sell signals when crossing below zero, indicating potential trend reversals.
- Momentum Confirmation: Traders may use the Derivative Oscillator to confirm momentum in the direction of the prevailing trend identified through other technical analysis methods.
- Divergence: Divergence between price action and the Derivative Oscillator may signal potential trend reversals. For example, bullish divergence occurs when prices make lower lows while the Derivative Oscillator forms higher lows, indicating underlying buying pressure and a potential bullish reversal.
Detrended Price Oscillator
The Detrended Price Oscillator is a technical indicator used to identify short-term cycles and potential overbought or oversold conditions in the market.
Components
- Detrended Price Oscillator: The Detrended Price Oscillator line represents the difference between the closing price and a simple moving average of the closing price over a specified period.
Parameters
- Price: The data field used in calculating the Detrended Price Oscillator. The default is Close.
- Period: The number of periods used in calculating the Detrended Price Oscillator. The default is 20.
Interpretation and Usage
- Short-Term Cycles: The Detrended Price Oscillator helps identify short-term cycles in the market by highlighting deviations from the moving average.
- Overbought and Oversold Conditions: Extreme readings of the Detrended Price Oscillator may indicate potential overbought or oversold conditions, suggesting possible reversals in price direction.
- Confirmation with Other Indicators: Traders may use the Detrended Price Oscillator in conjunction with other technical indicators or chart patterns to confirm trading signals, enhancing confidence in their trading decisions.
Directional Movement Index (DMI)
The Directional Movement Index (DMI) is a technical indicator designed to assess the strength and direction of a trend in the price of an asset. It consists of three components: the Average Directional Index (ADX), the Plus Directional Indicator (+DMI), and the Minus Directional Indicator (-DMI). These components together provide insights into the strength and direction of price movements.
Components
- ADX: The Average Directional Index measures the strength of the prevailing trend, regardless of its direction. It is derived from the smoothed averages of the difference between the Plus and Minus Directional Indicators.
- Plus DMI: The Plus Directional Indicator quantifies upward price movement and is used to determine bullish strength. It measures the difference between two consecutive highs when the current high is higher than the previous high.
- Minus DMI: The Minus Directional Indicator quantifies downward price movement and is used to determine bearish strength. It measures the difference between two consecutive lows when the current low is lower than the previous low.
Parameters
- Period: Specifies the number of periods used in calculating the Directional Movement Index components. The default is 14.
Interpretation and Usage
- Trend Strength: The ADX component of the DMI helps traders assess the strength of a trend. Higher ADX values indicate stronger trends, while lower values suggest weaker trends or consolidation.
- Trend Direction: The Plus and Minus Directional Indicators (+DMI and -DMI) provide insights into the direction of the trend. When +DMI is above -DMI, it suggests bullish momentum, and when -DMI is above +DMI, it indicates bearish momentum.
- Crossover Signals: Crossovers between the Plus and Minus Directional Indicators can generate buy or sell signals. For example, when +DMI crosses above -DMI, it may signal a potential bullish trend reversal, and vice versa.
- ADX Level: Traders often use specific ADX levels to determine the strength of a trend. For example, ADX values above 25 are often considered as indicative of a strong trend, while values below 20 may suggest a lack of trend or a ranging market.
Donchian Channel
The Donchian Channel is a technical indicator used to identify potential breakout levels and measure market volatility.
Components
- Upper Channel: The Upper Channel line represents the highest high over a specified period.
- Lower Channel: The Lower Channel line represents the lowest low over a specified period.
- Mid Channel: The Mid Channel line represents the midpoint between the Upper and Lower Channels.
Parameters
- Period: The number of periods used in calculating the highest high and lowest low for constructing the channels. The default is 20.
- Max Price: Specifies the data field used to calculate the highest high. The default is High.
- Min Price: Specifies the data field used to calculate the lowest low. The default is Low.
Interpretation and Usage
- Breakout Identification: Traders use the Donchian Channel to identify potential breakout levels. Breakouts above the Upper Channel may signal a bullish trend, while breakouts below the Lower Channel may indicate a bearish trend.
- Volatility Measurement: Wider channel widths indicate higher volatility, while narrower channel widths suggest lower volatility.
- Support and Resistance: The Upper and Lower Channels can serve as dynamic support and resistance levels, guiding traders in setting stop-loss orders or profit targets.
Double Exponential Moving Average
The Double Exponential Moving Average (DEMA) is a technical indicator that reduces lag by applying a double smoothing technique to the moving average.
Components
- MovAvg: The DEMA line represents the double exponential moving average.
Parameters
- Period: The number of periods used in calculating the DEMA values. The default is 5.
- Price: The data field used in calculating the DEMA. The default is Close.
Interpretation and Usage
- Lag Reduction: The DEMA reduces lag compared to traditional moving averages, making it more responsive to recent price changes.
- Trend Identification: DEMA crossovers with the price may signal potential trend changes. For example, a bullish crossover (DEMA crossing above the price) may indicate a bullish trend, while a bearish crossover (DEMA crossing below the price) may suggest a bearish trend.
- Confirmation with Other Indicators: Traders often use DEMA in conjunction with other technical indicators or chart patterns to confirm trading signals, enhancing the reliability of their analyses.
Elder Force Index
The Elder Force Index (EFI) is a technical indicator used to measure the strength of bullish and bearish forces driving price movement.
Components
- EFI: The EFI line represents the difference between the current day's close and the previous day's close, multiplied by volume.
Parameters
- Fast MA Type: The type of moving average used for smoothing the EFI values. The default is Exponential.
- Fast MA Period: The period of the moving average used for smoothing the EFI values. The default is 4.
- Slow MA Type: The type of moving average used for smoothing the EFI values. The default is Exponential.
- Slow MA Period: The period of the moving average used for smoothing the EFI values. The default is 13.
Interpretation and Usage
- Bullish and Bearish Forces: Positive EFI values indicate bullish forces, while negative EFI values suggest bearish forces.
- Trend Confirmation: EFI crossovers with its moving averages may confirm the strength and direction of the prevailing trend.
- Volume Confirmation: Traders often use EFI in conjunction with volume analysis to confirm price movements. High EFI values accompanied by high volume may indicate strong buying or selling pressure.
Fisher Transform
The Fisher Transform is a technical indicator used to transform price data into a Gaussian normal distribution, making it easier to identify trend reversals.
Components
- Fisher Transform: The Fisher Transform line represents the transformed price values.
Parameters
- Period: The number of periods used in calculating the Fisher Transform values. The default is 5.
Interpretation and Usage
- Trend Reversals: Extreme values of the Fisher Transform, crossing above or below specific thresholds, may signal potential trend reversals.
- Overbought and Oversold Conditions: Traders may use extreme Fisher Transform values as indications of overbought or oversold conditions, potentially suggesting upcoming price corrections.
- Confirmation with Other Indicators: The Fisher Transform is often used in conjunction with other technical indicators or chart patterns to confirm trading signals, enhancing the reliability of trend reversal predictions.
Historical Volatility
Historical Volatility (HVOL) is a statistical measure of the dispersion of returns for a financial security over a specified period.
Components
- HVOL: The HVOL line represents the historical volatility of the financial security.
Parameters
- Price: The data field used in calculating historical volatility. The default is Close.
- Period: The number of periods used in calculating historical volatility. The default is 30.
- Annualization Factor: The factor used to annualize the historical volatility. The default is 260, assuming 260 trading days in a year.
Interpretation and Usage
- Volatility Analysis: HVOL helps traders and investors assess the degree of price fluctuation or risk associated with a financial security.
- Market Regime Identification: Changes in historical volatility levels may indicate shifts in market regimes, such as periods of high volatility preceding market corrections or periods of low volatility preceding breakouts.
- Options Pricing: HVOL is a crucial input in options pricing models, helping traders determine the fair value of options contracts based on expected future price movements.
Hull Moving Average
The Hull Moving Average (HMA) is a technical indicator that reduces lag and provides smoother price tracking compared to traditional moving averages.
Components
- Hull Moving Average (HMA): The HMA line represents the Hull Moving Average.
Parameters
- Period: The number of periods used in calculating the Hull Moving Average values. The default is 20.
- Price: The data field used in calculating the Hull Moving Average. The default is Close.
Interpretation and Usage
- Lag Reduction: The Hull Moving Average significantly reduces lag compared to conventional moving averages, making it more responsive to recent price changes.
- Trend Identification: The Hull Moving Average helps identify trends by smoothing out price fluctuations.
- Crossovers: Crossovers between the Hull Moving Average and price may indicate potential trend changes.
- Support and Resistance: The Hull Moving Average can act as dynamic support or resistance levels during trending markets.
Hurst
The Hurst exponent is a measure of the long-term memory of a time series. It quantifies the fractal nature of the data.
Components
- Hurst: The Hurst line represents the calculated Hurst exponent.
Parameters
- Period: The number of periods used in calculating the Hurst exponent. The default is 256.
- Price: The data field used in the calculation. The default is Close.
Interpretation and Usage
- Trend Persistence: A Hurst exponent value greater than 0.5 indicates a persistent trend, while a value less than 0.5 suggests mean reversion behavior.
- Market Efficiency: High Hurst exponent values may indicate a trending market with strong momentum, while low values may suggest a more range-bound or mean-reverting market.
- Timeframe Sensitivity: The interpretation of Hurst exponent values may vary depending on the timeframe analyzed, with longer periods providing more robust trend persistence assessments.
Ichimoku
The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a comprehensive trend-following indicator that provides insights into support and resistance levels, trend direction, and momentum. It consists of several components plotted on the price chart, including the Conversion Line, Base Line, Leading Span 1, Leading Span 2, and Lagging Span. These components together form a cloud-like structure, which helps traders identify key areas of interest.
Components
- Conversion Line (Tenkan-sen): A short-term moving average representing the midpoint of the highest high and lowest low over a specified period.
- Base Line (Kijun-sen): A medium-term moving average representing the midpoint of the highest high and lowest low over a longer period.
- Leading Span1 (Senkou Span A): The average of the Conversion Line and the Base Line plotted in the future.
- Leading Span2 (Senkou Span B): The average of the highest high and lowest low over a longer period plotted in the future.
- Lagging Span (Chikou Span): The closing price plotted in the past.
Parameters
- Conversion Period: The number of periods used in calculating the Conversion Line. The default is 9.
- Base Line Period: The number of periods used in calculating the Base Line. The default is 26.
- Lag Period: The period by which the Lagging Span is shifted. The default is 26.
- Lead Period: The number of periods for projecting Leading Span1 and Leading Span2. The default is 26.
Interpretation and Usage
- Trend Identification: The Ichimoku Cloud helps identify the direction and strength of trends. When the price is above the Cloud, it indicates a bullish trend, whereas a price below the Cloud suggests a bearish trend.
- Support and Resistance: The Cloud acts as dynamic support during uptrends and resistance during downtrends. Traders often look for price bounces or breaks above/below the Cloud for potential trading opportunities.
- Crossover Signals: Crossovers between the Conversion Line and the Base Line can generate buy or sell signals, indicating shifts in short-term momentum.
- Lagging Span Confirmation: The Lagging Span's position relative to the Cloud can provide confirmation of trend direction. When the Lagging Span is above the Cloud, it confirms a bullish trend, and when it's below the Cloud, it confirms a bearish trend.
Kairi Relative Index
The Kairi Relative Index measures the percentage distance between the current price and a specified moving average.
Components
- Kairi: The Kairi line represents the calculated relative index.
Parameters
- Price: The data field used in calculating the relative index. The default is Close.
- MA Period: The number of periods used in calculating the moving average. The default is 25.
- MA Type: The type of moving average used. The default is Simple.
Interpretation and Usage
- Overbought and Oversold Conditions: Extreme values of the Kairi index may indicate overbought (above 100%) or oversold (below 100%) market conditions.
- Trend Confirmation: Kairi crossovers with its moving average may confirm the direction of the prevailing trend. For example, a bullish crossover (Kairi crossing above the moving average) may signal a bullish trend, while a bearish crossover (Kairi crossing below the moving average) may suggest a bearish trend.
- Trend Reversals: Reversals in the Kairi index from extreme levels may signal potential trend reversals, especially when accompanied by other technical indicators or chart patterns.
KDJ Indicator
The KDJ Indicator is a modified version of the Stochastic Oscillator, designed to provide more accurate signals by incorporating additional smoothing techniques.
Components
- K: The %K line represents the current closing price relative to the highest high and lowest low over a specified period.
- D: The %D line is a moving average of the %K line, providing smoother signals.
- J: The J line is a further smoothed version of the %D line.
- DS: The %DS line represents the slow %D line, further smoothed.
- DSS: The %DSS line is a further smoothed version of the %DS line.
Parameters
- %K Range Period: The number of periods used in calculating the %K line. The default is 14.
- %D MA Period: The number of periods used in calculating the moving average for the %D line. The default is 3.
- %DS MA Period: The number of periods used in calculating the moving average for the %DS line. The default is 3.
- %DSS MA Period: The number of periods used in calculating the moving average for the %DSS line. The default is 3.
- Overbought: The threshold level for identifying overbought conditions. The default is 70.
- Oversold: The threshold level for identifying oversold conditions. The default is 30.
- %D MA Type, %DS MA Type, %DSS MA Type: The type of moving average used for smoothing. The default is Simple.
- Algorithm Choice: Specifies the algorithm used in calculating the %D, %DS, and %DSS lines. The default is MovAvgRatio.
- k Multiplier, d Multiplier: Multipliers used in the calculation. The default values are 3 and -2, respectively.
Interpretation and Usage
- Overbought and Oversold Conditions: Crosses of the %K line above the overbought threshold (70) or below the oversold threshold (30) may signal potential market reversals.
- Bullish and Bearish Divergence: Divergence between price action and the %K or %D lines may indicate potential shifts in trend direction.
- Trend Confirmation: Crossovers of the %K and %D lines may confirm the direction of the prevailing trend. For example, a bullish crossover (the %K line crossing above the %D line) may signal a bullish trend, while a bearish crossover (the %K line crossing below the %D line) may suggest a bearish trend.
Keltner Bands
Keltner Bands is a volatility-based technical indicator used to identify potential trend reversals, overbought and oversold conditions, and support/resistance levels.
Components
- Upper Band: The Upper Band represents the highest high over a specified period plus a multiple of the Average True Range (ATR).
- Mid Band: The Mid Band represents the moving average of the typical price (average of high, low, and close).
- Lower Band: The Lower Band represents the lowest low over a specified period minus a multiple of the Average True Range (ATR).
Parameters
- Band Period: The number of periods used in calculating the Upper and Lower Bands. The default is 10.
- Middle Period: The number of periods used in calculating the Mid Band. The default is 10.
- Upper Band: The multiplier applied to the Average True Range (ATR) to calculate the Upper Band. The default is 100.
- Lower Band: The multiplier applied to the Average True Range (ATR) to calculate the Lower Band. The default is 100.
Interpretation and Usage
- Volatility Measurement: The width of the Keltner Bands represents market volatility, with wider bands indicating higher volatility and narrower bands suggesting lower volatility.
- Trend Reversals: Price moving outside the Keltner Band boundaries may signal potential trend reversals or continuation.
- Overbought and Oversold Conditions: Extreme price movements beyond the Upper and Lower Bands may indicate overbought or oversold conditions, respectively. Traders may look for reversal signals when prices revert back within the band boundaries.
Know Sure Thing Indicator (KST)
The Know Sure Thing Indicator (KST) is a momentum oscillator that combines multiple smoothed rate-of-change (ROC) indicators to identify trend changes.
Components
- KST: The KST line represents the Know Sure Thing value.
- Signal: The Signal line represents the signal generated by the KST.
Parameters
- Price: The data field used in the calculation. The default is Close.
- ROC Period: The number of periods used in calculating the rate of change. Multiple ROC Period parameters are provided.
- MA Type: The type of moving average used in smoothing the ROC values. The default is Simple.
- MA Period: The number of periods used in smoothing the ROC values with the moving average. The default is 10 or 15, depending on the parameter set.
Interpretation and Usage
- Trend Identification: Bullish or bearish crossovers of the KST and Signal lines may signal potential trend changes.
- Divergence Analysis: Divergence between price action and KST may indicate weakening trends or potential reversals.
- Overbought and Oversold Conditions: Extreme KST values may suggest overbought or oversold conditions, depending on the direction of the trend.
McGinley Dynamic Indicator
The McGinley Dynamic Indicator is a dynamic moving average designed to reduce lag and provide smoother trend signals compared to traditional moving averages.
Components
- McGinley Dynamic Indicator: The line representing the McGinley Dynamic Indicator value.
Parameters
- Period: The number of periods used in calculating the McGinley Dynamic Indicator. The default is 20.
- Price: The data field used in the calculation. The default is Close.
Interpretation and Usage
- Trend Identification: The McGinley Dynamic Indicator follows price movements more closely than traditional moving averages, providing faster and smoother trend signals.
- Support and Resistance: The indicator may act as dynamic support or resistance levels during trending markets.
- Trade Entries and Exits: Traders may use crossovers of price and the McGinley Dynamic Indicator as signals for potential trade entries or exits.
Momentum
Momentum is a trend-following oscillator that measures the rate of change in price movements over a specified period.
Components
- Momentum: The line representing the Momentum oscillator value.
- Momentum Mov Avg: The moving average line applied to the Momentum values.
Parameters
- Period: The number of periods used in calculating the rate of change. The default is 10.
- Current Source: The current data field used in the calculation. The default is Close.
- Previous Source: The previous data field used in the calculation. The default is Close.
- MA Period: The number of periods used in smoothing the Momentum values with the moving average. The default is 5.
- MA Type: The type of moving average used in smoothing the Momentum values. The default is Simple.
Interpretation and Usage
- Trend Confirmation: Momentum values above zero indicate upward momentum, while values below zero indicate downward momentum.
- Divergence Analysis: Divergence between price action and Momentum may signal potential trend reversals.
- Overbought and Oversold Conditions: Extreme Momentum values may suggest overbought or oversold conditions, depending on the direction of the trend.
Moving Average
The Moving Average study calculates the average value of a security's price over a specified period. Within the parameters section, users can choose the following type of moving average they want calculated : Simple, Exponential, Weighted, Smoothed, Triangular, and Variable.
Components
- Mov Avg: The line representing the Moving Average value.
Parameters
- MA Type: The type of moving average used in the calculation. The default is Simple.
- Period: The number of periods used in calculating the moving average. The default is 5.
- Price: The data field used in the calculation. The default is Close.
Interpretation and Usage
- Trend Identification: Moving averages help identify the direction of the trend by smoothing out price fluctuations.
- Support and Resistance: Moving averages can act as dynamic support or resistance levels during trending markets.
- Crossovers: Bullish or bearish crossovers between different moving averages or between price and a moving average may signal potential trade opportunities.
Moving Average Convergence Divergence (MACD)
MACD is a trend-following momentum indicator developed by Gerald Appel in the late 1970s and is used to identify changes in the strength, direction, momentum, and duration of a trend.
Components
- MACD Line (Fast Line): The MACD line is calculated by subtracting the longer-term Exponential Moving Average (EMA) from the shorter-term EMA. Typically, the shorter-term EMA is calculated over a 12-day period, and the longer-term EMA is calculated over a 26-day period. The resulting line represents the difference between these two EMAs.
- Signal Line (Slow Line): The Signal line, also known as the Average line, is a 9-day EMA of the MACD line. This line smooths out the MACD line and helps generate trading signals.
- Diff Line (MACD Histogram): The Diff Line is derived from the difference between the MACD line and the Signal line. It represents the distance between these two lines and oscillates above and below the zero line. When the MACD line is above the Signal line, the histogram is positive, indicating bullish momentum. Conversely, when the MACD line is below the Signal line, the histogram is negative, indicating bearish momentum.
Parameters
- Period1: the time period for the short-term Exponential Moving Average (EMA). The default is 12.
- Period2: the time period for the long-term Exponential Moving Average (EMA). The default is 26.
- Signal: the time period for the Signal Line. The default is 9.
- Price: the data field used in calculating MACD. The default is the Close.
Interpretation and Usage
- Trend Identification: MACD helps traders identify the direction of the trend and its strength. When the MACD line crosses above the Signal line, it is considered a bullish signal, suggesting that upward momentum may be strengthening. Conversely, when the MACD line crosses below the Signal line, it is considered a bearish signal, indicating that downward momentum may be accelerating.
- Divergence: MACD divergence occurs when the price of an asset moves in the opposite direction of the MACD indicator. Bullish divergence happens when the price forms a lower low, but the MACD histogram forms a higher low, suggesting that the downtrend may be losing momentum and a bullish reversal could occur. Conversely, bearish divergence occurs when the price forms a higher high, but the MACD histogram forms a lower high, indicating weakening upward momentum and a potential bearish reversal.
- Signal Line Crossovers: Traders often look for crossovers between the MACD line and the Signal line as potential buy or sell signals. A bullish crossover occurs when the MACD line crosses above the Signal line, suggesting a potential uptrend. A bearish crossover occurs when the MACD line crosses below the Signal line, indicating a potential downtrend.
- Histogram Analysis: Traders analyze the MACD histogram to gauge the strength of the current trend. A rising histogram suggests increasing momentum, while a falling histogram indicates decreasing momentum. Additionally, the size of the histogram bars can provide insights into the strength of the trend.
- Confirmation with Price Action: Traders often use MACD signals in conjunction with other technical indicators, chart patterns, or support and resistance levels to confirm trading decisions. For example, a bullish MACD crossover accompanied by a breakout above a key resistance level may provide a stronger indication of a potential uptrend.
- Signal Line Divergence: Some traders pay attention to divergences between the MACD line and the Signal line as potential reversal signals. For instance, if the MACD line continues to rise while the Signal line starts to flatten or decline, it may indicate that the upward momentum is weakening, and a bearish reversal could be on the horizon.
Moving Average Envelope
The Moving Average Envelope study creates a channel around a moving average by plotting upper and lower bands.
Components
- Upper MAE: The upper band of the Moving Average Envelope.
- Mid MAE: The moving average line used in the Moving Average Envelope.
- Lower MAE: The lower band of the Moving Average Envelope.
Parameters
- Period: The number of periods used in calculating the moving average. The default is 15.
- Upper Band: The percentage or number of standard deviations added to the moving average to calculate the upper band. The default is 3.
- Lower Band: The percentage or number of standard deviations subtracted from the moving average to calculate the lower band. The default is 3.
- Price: The data field used in the calculation. The default is Close.
- MA Type: The type of moving average used in the calculation. The default is Simple.
Interpretation and Usage
- Volatility Analysis: Moving Average Envelopes expand and contract based on market volatility, providing insights into potential price extremes.
- Support and Resistance: The upper and lower bands may act as dynamic support and resistance levels.
Moving Average Oscillator
The Moving Average Oscillator calculates the difference between two moving averages and a signal line.
Components
- MA Oscillator: The line representing the Moving Average Oscillator.
- Signal: The signal line used in the Moving Average Oscillator.
- Diff: The difference between the Moving Average Oscillator and the signal line.
Parameters
- MA1 Type: The type of moving average for the first moving average. The default is Simple.
- MA1 Period: The number of periods for the first moving average. The default is 5.
- MA1 Price: The data field used for the first moving average calculation. The default is Close.
- MA2 Type: The type of moving average for the second moving average. The default is Simple.
- MA2 Period: The number of periods for the second moving average. The default is 15.
- MA2 Price: The data field used for the second moving average calculation. The default is Close.
- Signal Type: The type of moving average used for the signal line. The default is Simple.
- Signal Period: The number of periods for the signal line. The default is 9.
- Oscillator Type: The type of oscillator generated. The default is Difference.
Interpretation and Usage
- Trend Reversal: Bullish or bearish crossovers between the Moving Average Oscillator and the signal line may indicate potential trend reversals.
- Momentum Confirmation: Divergence between price action and the Moving Average Oscillator may confirm or diverge from price momentum.
- Overbought and Oversold Conditions: Extreme values of the Moving Average Oscillator may signal overbought or oversold conditions when compared to the signal line.
Moving Linear Regression
The Moving Linear Regression study calculates the linear regression line over a specified period.
Components
- MLR: The Moving Linear Regression line.
- Upper MLR: The upper band of the Moving Linear Regression.
- Lower MLR: The lower band of the Moving Linear Regression.
Parameters
- Data Source: The data field used in the calculation. The default is Close.
- MLR Period: The number of periods used in calculating the linear regression line. The default is 14.
- Extension: The number of additional periods to extend the linear regression line into the future. The default is 0.
- Lead/Lag: The number of periods to lead or lag the linear regression line. The default is 0.
- Band Type: The type of band generated. The default is Difference.
- Upperband Factor: The multiplier for calculating the upper band. The default is 1.
- Lowerband Factor: The multiplier for calculating the lower band. The default is 1.
Interpretation and Usage
- Trend Identification: Moving Linear Regression helps identify the direction of the trend by fitting a linear line to the data.
- Support and Resistance: The upper and lower bands may act as dynamic support and resistance levels.
- Reversion to the Mean: Prices may revert to the Moving Linear Regression line after moving away from it.
On-Balance Volume
The On-Balance Volume study measures buying and selling pressure by adding volume on up days and subtracting volume on down days.
Components
- Up: The value representing the upward trend direction.
- Down: The value representing the downward trend direction.
Parameters
- None
Interpretation and Usage
- Trend Confirmation: On Balance Volume is used to confirm price trends. Rising On Balance Volume confirms uptrends, while falling On Balance Volume confirms downtrends.
- Divergence: Divergence between price and On Balance Volume may signal potential reversals.
- Volume Confirmation: Increasing On Balance Volume during price advances confirms bullish strength, while decreasing On Balance Volume during price declines confirms bearish strength.
Parabolic
The Parabolic study calculates trailing stop levels to follow the price trend.
Components
- Up: The value representing the upward trend direction.
- Down: The value representing the downward trend direction.
Parameters
- AF Factor: The acceleration factor used in calculating the parabolic levels. The default is 0.02.
- Maximum: The maximum value for the acceleration factor. The default is 0.2.
- Start: The initial value for the acceleration factor. The default is 0.02.
Interpretation and Usage
- Trailing Stops: Parabolic SAR levels can be used as trailing stops to lock in profits during a trend.
- Trend Reversal: Reversal of Parabolic SAR from above to below the price may indicate a potential reversal from bullish to bearish trend and vice versa.
Percentage Price Oscillator
The Percentage Price Oscillator calculates the percentage difference between two moving averages.
Components
- Percentage Price Oscillator: The line representing the Percentage Price Oscillator.
- Signal: The signal line used in the Percentage Price Oscillator.
- Diff: The difference between the Percentage Price Oscillator and the signal line.
Parameters
- Price: The data field used in the calculation. The default is Close.
- Type 1, 2, 3: The type of moving average used for each of the three moving averages. The default is Exponential.
- Period 1, 2, 3: The number of periods for each of the three moving averages. The default is 12 for Type 1, 26 for Type 2, and 9 for Type3
Interpretation and Usage
- Trend Identification: Bullish or bearish crossovers between the Percentage Price Oscillator and the signal line may indicate potential trend reversals.
- Divergence: Divergence between price action and the Percentage Price Oscillator may signal potential reversals or trend strength.
- Overbought and Oversold Conditions: Extreme values of the Percentage Price Oscillator may signal overbought or oversold conditions when compared to the signal line.
Price Zone
The Price Zone study identifies overbought and oversold levels based on price movements within a specified period.
Components
- Price Zone: The current price zone.
- Overbought1, Overbought2, Overbought3: Overbought levels.
- Oversold1, Oversold2, Oversold3: Oversold levels.
Parameters
- Period: The number of periods used in calculating the price zone. The default is 14.
- Overbought1, Overbought2, Overbought3: Threshold levels for overbought conditions. The default values are 15, 40, and 60, respectively.
- Oversold1, Oversold2, Oversold3: Threshold levels for oversold conditions. The default values are -5, -40, and -60, respectively.
Interpretation and Usage
- Overbought and Oversold Conditions: Price Zone helps identify levels where the price may be considered overbought or oversold.
- Potential Reversals: Extreme price zones may indicate potential reversal points in the market.
Psychological Line
The Psychological Line study calculates the psychological threshold of market sentiment and is used identify possible market trends. This indicator is also known as the "100 Line," as it represents the level where the market sentiment is neutral, and prices can move in any direction. It is based on the principle that traders are influenced by their emotions and beliefs about the market, which can lead to significant shifts in buying and selling behavior.
Components
- Psychological Line: The current psychological line value.
- Overbought: The overbought level.
- Oversold: The oversold level.
Parameters
- Psychological Line: The number of periods used in calculating the psychological line. The default is 12.
- Overbought: The threshold level for the overbought condition. The default is 75.
- Oversold: The threshold level for the oversold condition. The default is 25.
Interpretation and Usage
- Market Sentiment: Psychological Line helps gauge market sentiment based on whether the value is above or below the overbought and oversold levels.
- Reversals: Extreme values of the Psychological Line may indicate potential market reversals.
Quantitative Qualitative Estimation (QQE)
The QQE (Quantitative Qualitative Estimation) study is a smoothed version of the Relative Strength Index (RSI) that helps identify trends and overbought/oversold conditions.
Components
- Fast QQE: The fast QQE line.
- Slow QQE: The slow QQE line.
- Overbought: The overbought level.
- Oversold: The oversold level.
Parameters
- Price: The data field used in the calculation. The default is Close.
- RSI Period: The number of periods used in calculating the RSI. The default is 14.
- Avg Period: The number of periods used in smoothing the QQE. The default is 5.
- ATR Period: The number of periods used in calculating the Average True Range (ATR). The default is 27.
- Factor: The factor used in smoothing the QQE. The default is 4.326.
- Overbought: The threshold level for the overbought condition. The default is 70.
- Oversold: The threshold level for the oversold condition. The default is 30.
Interpretation and Usage
- Trend Identification: QQE helps identify trends based on the crossover of the fast and slow QQE lines.
- Overbought and Oversold Conditions: Extreme QQE values may indicate overbought or oversold conditions.
- Signal Confirmation: QQE signals may be confirmed with price action and other technical indicators for trading decisions.
Rate Of Change
The Rate of Change (ROC) study calculates the percentage change in price over a specified period.
Components
- ROC: The current rate of change value.
Parameters
- Period: The number of periods used in calculating the rate of change. The default is 1.
- Source Price: The data field used in the calculation. The default is Close.
Interpretation and Usage
- Momentum Indicator: ROC measures the momentum of price movements.
- Signal Generation: ROC crossovers or extreme values may indicate potential buy or sell signals.
Regression Slope
The Regression Slope study calculates the slope of a linear regression line for a specified period.
Components
- RegSlope: The current regression slope value.
- RegSlope MovAvg: Moving average of the regression slope.
Parameters
- Price: The data field used in the calculation. The default is Close.
- Period: The number of periods used in calculating the regression slope. The default is 14.
- MA Type: The type of moving average used for smoothing the regression slope. The default is Simple.
- MA Period: The number of periods used in the moving average calculation. The default is 5.
- Lead/Lag: The lead or lag applied to the regression line. The default is 0.
Interpretation and Usage
- Trend Identification: Regression slope helps identify the direction and strength of the trend.
- Reversal Signals: Changes in the slope direction may indicate potential trend reversals.
Relative Momentum Index
The Relative Momentum Index (RMI) is a momentum oscillator that measures the velocity and magnitude of price movements.
Components
- RMI: The current relative momentum index value.
- RMI Mov Avg: Moving average of the relative momentum index.
- Overbought: Overbought level.
- Oversold: Oversold level.
Parameters
- Data Source: The data field used in the calculation. The default is Close.
- Period: The number of periods used in calculating the RMI. The default is 14.
- Momentum Period: The number of periods used in calculating momentum. The default is 10.
- MA Type: The type of moving average used in smoothing the RMI. The default is Exponential.
- MA Period: The number of periods used in the moving average calculation. The default is 14.
- Overbought: The threshold level for the overbought condition. The default is 70.
- Oversold: The threshold level for the oversold condition. The default is 30.
Interpretation and Usage
- Overbought and Oversold Conditions: RMI helps identify overbought and oversold conditions.
- Momentum Confirmation: RMI signals may be confirmed with price action for trend continuation or reversal.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder and used to measure the speed and change of price movements.
Components
- RSI: calculates the ratio of recent gains to recent losses over a specified period, typically 14 days, to measure the momentum and magnitude of price movements in a security.. The RSI oscillates between 0 and 100.
Parameters
- Price: the data field used in calculating RSI. The default is the Close.
- Period: the time period used in calculating RSI. The default is 14.
- Overbought: the overbought level. An RSI above this value is considered to be overbought. The default is 70.
- Oversold: the oversold level. An RSI below this value is considered to be oversold. The default is 30.
Interpretation and Usage
- Overbought and Oversold Conditions: The RSI is often used to identify overbought and oversold conditions in the market. Traditionally, an RSI value above 70 is considered overbought, suggesting that the asset may be due for a pullback or reversal to the downside. Conversely, an RSI value below 30 is considered oversold, indicating that the asset may be due for a bounce or reversal to the upside. However, it's important to note that markets can remain overbought or oversold for extended periods, so traders often use additional confirmation signals.
- Divergence: RSI divergence occurs when the price of an asset moves in the opposite direction of the RSI. Bullish divergence happens when the price makes a new low, but the RSI forms a higher low. This suggests that the downtrend may be losing momentum, and a bullish reversal could be imminent. Conversely, bearish divergence occurs when the price makes a new high, but the RSI forms a lower high, indicating weakening upward momentum and a potential bearish reversal.
- Trend Confirmation: The RSI can be used to confirm trends identified through other technical analysis methods. In an uptrend, the RSI tends to remain above 50, and in a downtrend, it typically stays below 50. Some traders use RSI crossovers above or below the 50 level as signals to enter or exit trades in the direction of the trend.
- RSI Range Analysis: Traders often analyze the range of RSI values over time to gain insights into the strength and sustainability of a trend. For example, a consistently high RSI may indicate a strong and healthy uptrend, while a consistently low RSI may suggest a strong and sustainable downtrend.
- Divergence with Volume: Some traders combine RSI divergence with volume analysis to strengthen their trading signals. For instance, bullish divergence accompanied by increasing volume may provide a stronger indication of a potential reversal.
Relative Volatility Index
The Relative Volatility Index (RVI) measures the volatility of price movements relative to a specified period.
Components
- Relative Volatility Index: The current relative volatility index value.
Parameters
- SD Period: The number of periods used in calculating the standard deviation. The default is 10.
- MA Period: The number of periods used in the moving average calculation. The default is 14.
- MA Type: The type of moving average used in smoothing the RVI. The default is Smoothed.
Interpretation and Usage
- Volatility Measurement: RVI helps gauge the volatility of price movements.
- Trend Confirmation: Changes in RVI direction may confirm trend strength or weakness.
REX
The REX Indicator is a technical analysis tool used to identify trend reversals and generate trading signals based on price movements.
Components
- REX: The current REX value.
- Signal: Signal generated by the REX indicator.
Parameters
- REX Period: The number of periods used in calculating the REX indicator. Default is 20.
- Signal Period: The number of periods used in generating the signal. Default is 3.
- True HL: Specifies whether to use true highs and lows in the calculation. Default is Off.
Interpretation and Usage
- Trend Reversal Identification: REX indicator helps identify potential trend reversals.
- Signal Generation: Buy or sell signals are generated based on REX indicator crossovers or extreme values.
Special K
The Special K indicator is a momentum indicator designed to capture the overall market trend by combining short-term, intermediate-term, and long-term trends.
Components
- Special K: The current value of the Special K indicator.
Parameters
- None
Interpretation and Usage
- Trend Identification: Special K indicator helps identify the direction and strength of the trend.
- Signal Generation: Buy or sell signals may be generated based on Special K indicator crossovers or extreme values.
Slow Stochastic
The Slow Stochastic oscillator is a momentum indicator that compares the closing price of a security to its price range over a specific period.
Components
- Slow K: The current value of the Slow K line.
- Slow D: The current value of the Slow D line.
- Overbought: Overbought level.
- Oversold: Oversold level.
Parameters
- Algorithm Choice: Method used for %K calculation. Default is MA Ratio.
- %K Range Period: The number of periods used in calculating %K. Default is 10.
- %K MA Type: The type of moving average used for %K smoothing. Default is Smoothed.
- %K MA Period: The number of periods used in %K moving average calculation. Default is 3.
- %D MA Type: The type of moving average used for %D smoothing. Default is Smoothed.
- %D MA Period: The number of periods used in %D moving average calculation. Default is 3.
- Overbought: The threshold level for the overbought condition. Default is 75.
- Oversold: The threshold level for the oversold condition. Default is 25.
Interpretation and Usage
- Overbought and Oversold Conditions: Slow Stochastic helps identify overbought and oversold conditions.
- Momentum Confirmation: Divergence between price and Slow Stochastic can indicate potential trend reversals.
Stochastic
The Stochastic Oscillator is a momentum indicator that compares the closing price of a security to its price range over a specified period. It helps identify potential reversal points by measuring the location of the closing price relative to the high-low range.
Components
- %K Line: The %K line represents the main oscillator, indicating the current level of the closing price relative to the price range.
- %D Line: The %D line is a moving average of the %K line, providing a smoother representation of the oscillator.
- %DS Line: The %DS line is a moving average of the %D line, further smoothing out the oscillator.
- %DSS Line: The %DSS line is a moving average of the %DS line, offering additional smoothing.
- Overbought: Overbought level.
- Oversold: Oversold level.
Parameters
- %K Range Period: Specifies the number of periods used in calculating the %K line. The default is 14.
- %D MA Period: Specifies the number of periods used in smoothing the %K line to generate the %D line. The default is 3.
- %DS MA Period: Specifies the number of periods used in smoothing the %D line to generate the %DS line. The default is 3.
- %DSS MA Period: Specifies the number of periods used in smoothing the %DS line to generate the %DSS line. The default is 3.
- Overbought: Specifies the threshold value above which the oscillator is considered overbought. The default is 70.
- Oversold: Specifies the threshold value below which the oscillator is considered oversold. The default is 30.
- %D MA Type: Determines the type of moving average used in smoothing the %K line to generate the %D line. The default is Simple Moving Average (SMA).
- %DS MA Type: Determines the type of moving average used in smoothing the %D line to generate the %DS line. The default is Simple Moving Average (SMA).
- %DSS MA Type: Determines the type of moving average used in smoothing the %DS line to generate the %DSS line. The default is Simple Moving Average (SMA).
- Algorithm Choice: Specifies the algorithm used for smoothing the oscillator. The default is Moving Average Ratio (MovAvgRatio).
Interpretation and Usage
- Overbought and Oversold Conditions: Overbought conditions occur when the oscillator rises above the overbought threshold, suggesting potential selling pressure and a possible price reversal. Conversely, oversold conditions occur when the oscillator falls below the oversold threshold, indicating potential buying pressure and a potential price rebound.
- Signal Line Crosses: Crossovers between the %K and %D lines can generate buy or sell signals, indicating shifts in momentum.
- Trend Confirmation: Traders often use the Stochastic Oscillator to confirm trends. In an uptrend, the oscillator tends to remain in the overbought zone, while in a downtrend, it typically stays in the oversold zone.
Stochastic RSI
The Stochastic Relative Strength Index (Stochastic RSI) is a momentum oscillator that combines aspects of both the Stochastic Oscillator and the Relative Strength Index (RSI). It measures the level of RSI within its range over a specified period, providing insights into potential overbought or oversold conditions.
Components
- %K Line: The %K line represents the current level of the Stochastic RSI, indicating the position of the RSI value within its range.
- %D Line: The %D line is a moving average of the %K line, providing a smoothed version of the Stochastic RSI oscillator.
- Overbought: Overbought level.
- Oversold: Oversold level.
Parameters
- RSI Period: The number of periods used in calculating RSI. Default is 14.
- Price: The price type used in RSI calculation. Default is Close.
- Stochastic Period: The number of periods used in calculating Stochastic RSI. Default is 14.
- % K Period: The number of periods used in %K calculation. Default is 3.
- % D Period: The number of periods used in %D calculation. Default is 3.
- Overbought: The threshold level for the overbought condition. Default is 80.
- Oversold: The threshold level for the oversold condition. Default is 20.
Interpretation and Usage
- Overbought and Oversold Conditions: Stochastic RSI helps identify overbought and oversold conditions.
- Momentum Confirmation: Divergence between price and Stochastic RSI can indicate potential trend reversals.
SSL (Stochastic Stop Loss) Indicator
The SSL (Stochastic Stop Loss) indicator is a trend-following indicator used to determine potential stop-loss levels based on stochastic analysis.
Components
- SSL Indicator: The current SSL indicator value.
Parameters
- Period: The number of periods used in calculating the SSL indicator. Default is 10.
Interpretation and Usage
- Stop Loss Identification: SSL indicator helps identify potential stop-loss levels based on stochastic analysis.
- Trend Confirmation: SSL indicator values aligning with price movements confirm the prevailing trend.
Stoller
The Stoller Oscillator is a technical indicator that helps identify potential trend reversals and measure market volatility.
Components
- Stoller Up: Indicates upward market momentum.
- Stoller Down: Indicates downward market momentum.
Parameters
- Period: The number of periods used in calculating the Stoller oscillator. Default is 14.
- ATR Factor: The factor used in calculating the Average True Range (ATR). Default is 1.
- Factor: The factor used in calculating the Stoller oscillator. Default is 3.
Interpretation and Usage
- Trend Reversal Identification: Stoller oscillator helps identify potential trend reversals based on market momentum.
- Volatility Measurement: Stoller oscillator also provides insights into market volatility.
Trend Detection Index
The Trend Detection Index (TDI) is a technical indicator used to identify trends and measure their strength.
Components
- Direction Indicator: Indicates the direction of the trend.
- Trend Detection Index: The current value of the TDI.
Parameters
- Period: The number of periods used in calculating the TDI. Default is 20.
Interpretation and Usage
- Trend Identification: TDI helps identify the direction of the trend.
- Trend Strength Measurement: TDI also provides insights into the strength of the prevailing trend.
TRIX (Triple Exponential Moving Average)
The Triple Exponential Moving Average (TRIX) is a momentum indicator that calculates the percentage rate of change in a triple-smoothed exponential moving average of the price data. It is designed to filter out short-term price fluctuations and highlight longer-term trends.
Components
- TRIX: The TRIX line represents the main oscillator, calculated based on the triple-smoothed exponential moving average of the price data.
Parameters
- Data Source: Specifies the price data used in the TRIX calculation. The default value is Close.
- MA Period: Specifies the number of periods used in calculating the triple-smoothed exponential moving average. The default is 14.
Interpretation and Usage
- Trend Identification: TRIX helps identify trends by smoothing out price fluctuations and highlighting longer-term price movements.
- Signal Line Crosses: Crossovers between the TRIX line and its signal line can generate buy or sell signals, indicating potential shifts in momentum.
- Divergence Analysis: Divergence between the TRIX line and price movements can provide insights into potential trend reversals or continuations.
True Strength Index
The True Strength Index (TSI) is a momentum oscillator that measures the strength of price movements relative to volatility. It combines multiple exponential moving averages to capture both short-term and long-term price changes, providing a smoother representation of momentum.
Components
- True Strength Index (TSI): The TSI line represents the main oscillator, calculated based on the difference between two exponential moving averages of price changes.
- True Strength Average (TSA): The TSA line is an exponential moving average of the TSI values, further smoothing out the oscillator.
Parameters
- Price: Specifies the price data used in TSI calculation. The default value is Close.
- MA Type 1: Determines the type of moving average used in smoothing TSI values for the first calculation. The default value is Exponential Moving Average (EMA).
- Period 1: Specifies the number of periods used in the first TSI calculation. The Default is 25.
- MA Type 2: Specifies the type of moving average used in smoothing TSI values for the second calculation. The default is Exponential Moving Average (EMA).
- Period 2: Specifies the number of periods used in the second TSI calculation. The default is 13.
- MA Type 3: Specifies the type of moving average used in smoothing TSI values for the third calculation. The default is Exponential Moving Average (EMA).
- Period 3: Specifies the number of periods used in the third TSI calculation. The default is 7.
Interpretation and Usage
- Momentum Identification: The TSI helps identify momentum by comparing current price changes to historical price changes.
- Overbought and Oversold Conditions: Extreme TSI values can indicate overbought or oversold conditions, suggesting potential reversals in price direction.
- Signal Line Crosses: Crossovers between the TSI line and its signal line can generate buy or sell signals, indicating shifts in momentum.
Ultimate Oscillator
The Ultimate Oscillator is a momentum oscillator designed to capture momentum across three different timeframes. It combines short-term, intermediate-term, and long-term price momentum into a single oscillator, providing insights into overall market momentum.
Components
- Ultimate Oscillator: The main oscillator represents the combined momentum across three different timeframes.
- Overbought: Overbought level.
- Oversold: Oversold level.
Parameters
- Period1: Specifies the number of periods used for the first timeframe in calculating the Ultimate Oscillator. The default is 7.
- Period2: Specifies the number of periods used for the second timeframe in calculating the Ultimate Oscillator. The default is 14.
- Period3: Specifies the number of periods used for the third timeframe in calculating the Ultimate Oscillator. The default is 28.
- Overbought: The threshold level for the overbought condition. Default is 70.
- Oversold: The threshold level for the oversold condition. Default is 30.
Interpretation and Usage
- Overbought and Oversold Conditions: Overbought conditions occur when the Ultimate Oscillator rises above the overbought threshold, suggesting potential selling pressure and a possible price reversal. Conversely, oversold conditions occur when the Ultimate Oscillator falls below the oversold threshold, indicating potential buying pressure and a potential price rebound.
- Signal Line Crosses: Traders may look for crosses above the overbought line or below the oversold line as potential entry or exit signals, indicating shifts in market momentum.
- Divergence: Divergence between price and the Ultimate Oscillator can provide valuable insights into potential trend reversals. For example, if price makes a new high while the Ultimate Oscillator fails to confirm it with a new high, it may signal weakening momentum and a possible trend reversal.
Vertical Horizontal Filter (VHF)
The Vertical Horizontal Filter is a trend-following indicator used to identify whether a market is in a trending or ranging phase.
Components
- Vertical Horizontal Filter: The current value of the VHF line.
Parameters
- Period: The number of periods used in the VHF calculation. Default is 28.
Interpretation and Usage
- Trend Identification: VHF values above a certain threshold suggest a trending market, while values below indicate a ranging or sideways market.
- Volatility Measurement: VHF can also be used to measure market volatility.
Volatility Stop
The Volatility Stop is a trend-following indicator that uses volatility to dynamically adjust stop-loss levels.
Components
- Volatility Stop Lower: The current value of the lower volatility stop level.
- Volatility Stop Upper: The current value of the upper volatility stop level.
Parameters
- Period: The number of periods used in the volatility calculation. Default is 3.
- Factor: A multiplier to adjust the volatility stop levels. Default is 1.
- Back Off: Option to adjust the stop level away from the price. Default is Off.
Interpretation and Usage
- Stop-Loss Placement: Volatility Stops are used to set trailing stop-loss levels that adjust based on market volatility.
- Trend Following: Traders may use Volatility Stops to follow trends and stay in positions as long as the trend persists.
Volume
The Volume indicator measures the number of shares or contracts traded over a specific period.
Components
- Volume: The current volume value.
- Up Compare: Comparison of current volume with previous volume for up moves.
- Down Compare: Comparison of current volume with previous volume for down moves.
- Moving Average: The moving average of volume.
Parameters
- Period: The number of periods used in the volume calculation. Default is 5.
- MA Type: The type of moving average used. Default is Simple.
- Compare: The volume type to compare. Default is Total Volume.
Interpretation and Usage
- Volume Confirmation: Volume can confirm the strength of price movements.
- Volume Patterns: Changes in volume levels can indicate potential trend reversals or continuations.
Volume Weighted Average Price (VWAP)
The Volume Weighted Average Price is an indicator that calculates the average price of a security weighted by trading volume.
Components
- Volume Weighted Average Price: The current value of VWAP.
Parameters
- Price: The price type used in VWAP calculation. Default is Mid (average of high, low, and close).
- Period: The number of periods for which VWAP is calculated. Default is 0 (current period).
Interpretation and Usage
- Fair Value Indicator: VWAP can be used as a benchmark to assess whether an asset is trading at a premium or discount relative to average market prices.
- Execution Benchmark: Traders use VWAP to evaluate the quality of their trade execution relative to market conditions.
Vortex Indicator
The Vortex Indicator is a technical indicator designed to identify the existence and direction of a trend's movement.
Components
- Positive Vortex: The current value of the positive vortex line.
- Negative Vortex: The current value of the negative vortex line.
Parameters
- Period: The number of periods used in the Vortex Indicator calculation. Default is 14.
Interpretation and Usage
- Trend Direction: Positive and negative vortex lines crossing each other can signal changes in trend direction.