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7 min readWilliams %R, also known as %R, is a technical indicator that measures the level of overbought or oversold conditions in the market. Developed by Larry Williams, %R is a momentum oscillator that resembles the stochastic oscillator.The Williams %R indicator is usually plotted on a scale from -100 to 0. It is calculated by comparing the highest high of a given period to the current closing price and then dividing the difference by the highest high minus the lowest low within the same period.
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7 min readThe Parabolic SAR (Stop and Reverse) is a technical analysis indicator that is used by traders to determine the potential reversals in the price direction of an asset. Developed by J. Welles Wilder, Jr., the Parabolic SAR is mainly employed in trending markets.The indicator appears as a series of dots placed either above or below the price chart. When the dots are below the price, it signifies an uptrend, while dots above the price indicate a downtrend.
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9 min readThe Aroon indicator is a technical analysis tool used to measure the strength and direction of a trend in the financial markets. It consists of two lines: Aroon Up and Aroon Down. The Aroon Up line measures the number of periods since the highest price within a given timeframe, while the Aroon Down line measures the number of periods since the lowest price.The Aroon indicator oscillates between 0 and 100.
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11 min readThe Chaikin Oscillator is a technical analysis tool that combines both price and volume data to analyze the flow of money in and out of a stock. It was developed by Marc Chaikin, a renowned stock market analyst.Trading with the Chaikin Oscillator involves analyzing its values to make buy or sell decisions. The oscillator is calculated by subtracting a 10-day exponential moving average (EMA) of the Accumulation Distribution Line (ADL) from a 3-day EMA of the ADL.
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9 min readThe Detrended Price Oscillator (DPO) is a technical analysis tool used to identify short-term price cycles in a financial asset. It helps traders and investors understand when a market is oversold or overbought.To calculate the DPO, follow these steps:Select a specific time period, such as 20 days, depending on your preference and the asset being analyzed.Determine the center point for the chosen time period, which is calculated by [(chosen period / 2) + 1].
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12 min readThe Commodity Channel Index, also known as CCI, is a versatile technical indicator commonly used in trading. Developed by Donald Lambert, it was designed to identify cyclical trends in commodities markets, but it can also be applied to stocks, currencies, and other financial instruments.The CCI measures the current price level relative to the average price over a specified period of time.
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7 min readThe Vortex Indicator is a technical analysis tool used by traders to identify trend reversal points in the financial markets. It was developed by Etienne Botes and Douglas Siepman in 2010. This indicator focuses on capturing a trend's direction and strength to help traders make informed trading decisions.The Vortex Indicator consists of two lines: the positive trend indicator (+VI) and the negative trend indicator (-VI).
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8 min readCandlestick patterns are graphical representations of price movements in the form of individual and combination candle formations. Day traders utilize these patterns to analyze and forecast short-term price fluctuations in financial markets. Here is an overview of how to use candlestick patterns for day trading:Understanding Candlestick Basics: Candlesticks represent a specific time period (e.g.
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8 min readThe Aroon Indicator is calculated using two separate lines: Aroon Up and Aroon Down. These lines are used to measure the strength and direction of a trend in a financial market.To calculate the Aroon Up line, first, identify the number of periods since the highest high within the given time frame. Then, divide this number by the total number of periods and multiply by 100. This will give you the Aroon Up value.
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10 min readThe Rate of Change (ROC) is a commonly used technical indicator that measures the percentage change in the price of a security over a specified time period. It helps traders and analysts identify the speed and direction of price movements and understand potential trends.To calculate the Rate of Change, follow these steps:Determine the starting point: Select a specific starting date or period for which you want to calculate the ROC. Determine the end point: Select the ending date or period.
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8 min readThe Aroon Indicator is a technical analysis tool that helps traders identify the strength and direction of a trend. It consists of two lines, known as the Aroon Up and Aroon Down lines. The Aroon Up line shows the strength of an uptrend, while the Aroon Down line indicates the strength of a downtrend.For scalping, which is a short-term trading strategy that aims to capture small price movements, the Aroon Indicator can be useful in identifying potential entry and exit points.