chiggaway.com
-
13 min readA Complete Guide to Price Rate of Change (ROC) in tradingPrice Rate of Change (ROC) is a popular technical indicator used by traders to measure the speed and magnitude of price movements in financial markets. It helps traders identify the rate at which prices are changing, which can provide valuable insights into potential trends or reversals.ROC is calculated by comparing the current price of an asset to its price at a certain point in the past, usually over a specified timeframe.
-
9 min readThe Elder-Ray Index is a technical analysis tool used by traders to analyze market trends and determine the strength of bullish or bearish movements. It was developed by Dr. Alexander Elder, a well-known trader and author.The Elder-Ray Index consists of two separate indicators: the Bull Power and Bear Power. These indicators are plotted as separate lines either above or below a zero line on a price chart.
-
5 min readThe Hull Moving Average (HMA) is a technical indicator that aims to reduce lag and produce more accurate signals than traditional moving averages. It incorporates weighted moving averages and the square root of the period to deliver smoother and more responsive results.The calculation of the HMA involves several steps. Firstly, a weighted moving average (WMA) is calculated using the half-length of the period. The half-length is derived from the square root of the period being considered.
-
8 min readThe Typical Price (TP) is a technical indicator used in day trading to analyze the average price of an asset during a specific trading period. It is calculated by adding the high, low, and closing prices of a candlestick and then dividing the sum by three.The TP indicator helps eliminate some of the noise in the market by smoothing out price fluctuations. It provides traders with a more accurate representation of the asset's average price during a given timeframe.
-
7 min readThe Volume Price Trend (VPT) is a technical analysis indicator that combines both volume and price data to identify the strength of trends and potential reversal points in the financial markets. It helps traders and investors to analyze the relationship between price movements and trading volume.To read and interpret the VPT, you need to observe two key components: the direction and magnitude of the indicator.Direction: The VPT moves in the same direction as the price trend.
-
10 min readThe Moving Average Convergence Divergence (MACD) is a popular technical indicator used by traders and investors to analyze market trends and identify potential buy or sell signals. It is considered one of the simplest and most effective indicators for determining the strength and direction of a trend.The MACD consists of two lines: the MACD line and the signal line. The MACD line is calculated by subtracting a longer-term exponential moving average (EMA) from a shorter-term EMA.
-
9 min readThe Triple Exponential Average (TRIX) is a technical indicator that was developed by Jack Hutson in the 1980s. It is used to identify and confirm trends in stock prices, commodities, and other financial instruments. TRIX is calculated by smoothing the price data using three different exponential moving averages (EMA).The first step in calculating TRIX is to calculate a single exponential moving average of the price data.
-
4 min readFibonacci retracements, a popular tool used in technical analysis of financial markets, are calculated using a mathematical sequence discovered by Italian mathematician Leonardo Fibonacci in the 13th century. The sequence begins with 0 and 1, and each subsequent number is the sum of the previous two numbers (e.g., 0, 1, 1, 2, 3, 5, 8, 13, and so on).To apply Fibonacci retracements, a high and low point of a price movement are identified.
-
11 min readThe Aroon indicator is a technical analysis tool used to determine the strength and direction of a trend in a financial instrument. It consists of two lines, Aroon-Up and Aroon-Down, which measure the time between the highest high and lowest low price over a specified period.To trade with the Aroon indicator, follow these steps:Identify an uptrend: The Aroon-Up line should be above the Aroon-Down line, indicating that new highs are being reached more frequently than new lows.
-
10 min readThe Aroon indicator is a technical analysis tool that can be used for swing trading. It consists of two lines: the Aroon up line and the Aroon down line. The Aroon up line measures the number of periods since the highest point, while the Aroon down line measures the number of periods since the lowest point.To effectively trade with the Aroon indicator for swing trading, here are some considerations:Identify the trend: The Aroon indicator helps identify the strength and direction of the trend.
-
10 min readThe Percentage Price Oscillator (PPO) is a technical indicator used by traders and investors to identify potential trend reversals and generate buy or sell signals. It is similar to the popular Moving Average Convergence Divergence (MACD) indicator but provides a percentage measurement rather than an absolute value.The PPO is calculated by taking the difference between two exponential moving averages (EMAs) and dividing it by the longer EMA.