Posts (page 11)
-
7 min readThe Elder-Ray Index is a technical analysis tool developed by Dr. Alexander Elder. It consists of two components: the Bear Power and the Bull Power. These measures are designed to help swing traders identify buying and selling opportunities in the market.The Bear Power is calculated by subtracting the Exponential Moving Average (EMA) of the close price from the EMA of the high price. It measures the strength of the bears in the market.
-
7 min readMoving Min is a calculation used in statistics and data analysis to identify the minimum value over a specified interval or window. It involves analyzing a dataset or a sequence of data points and calculating the minimum value within a moving window.To calculate the moving minimum, a window size is determined, which represents the number of data points or units of time to be considered at once.
-
6 min readTypical price refers to the average or usual cost of a product or service. It is the price that most customers would expect to pay based on market trends and consumer preferences.The typical price is determined by various factors such as production costs, competition, demand, and supply. Companies consider these factors to set a price that is both profitable for them and acceptable to customers.
-
13 min readChandelier Exit is a technical indicator designed by Chuck LeBeau. It helps traders to determine when to exit a trade. It is particularly useful for scalping, a trading strategy that involves making quick trades to capture small price movements.To interpret the Chandelier Exit for scalping, you need to understand its basic concept. The indicator consists of three main components: a trailing stop, an exponential moving average (EMA), and a multiple value.
-
8 min readThe Elder-Ray Index is a technical analysis tool that helps traders and investors assess the strength of price movements in financial markets. It was developed by Alexander Elder and consists of two components: the Bull Power and the Bear Power.Bull Power: This component of the Elder-Ray Index measures the strength of bulls (buyers) in the market. It is calculated by subtracting the 13-day exponential moving average (EMA) of the daily low prices from the current closing price.
-
8 min readAcceleration bands are a technical analysis tool that can be used by day traders to identify potential trade setups and make better trading decisions. They are similar to Bollinger Bands, but with a few key differences.The concept behind acceleration bands is based on the idea that trends tend to accelerate before they reach a turning point. The bands are plotted around a moving average, usually the 20-day simple moving average, with an upper and lower band.
-
11 min readThe Money Flow Index (MFI) is a technical indicator used in day trading to measure the strength and direction of money flowing into or out of a particular asset. It combines both price and volume data to provide traders with insight into the market sentiment and potential reversal points.
-
7 min readThe Mass Index (MI) is a technical analysis indicator used to identify potential reversals in a security's price trend. It was developed by Donald Dorsey in the early 1990s. The MI focuses on detecting periods of price compression or expansion, which are typically followed by significant price movements.To read the Mass Index, you first need to understand its components. The indicator consists of two moving averages: the High-Low Range (HLR) and the Double Exponential Moving Average (DEMA).
-
10 min readThe Chaikin Oscillator is a technical analysis tool that is used to measure the momentum of a security by comparing its accumulation and distribution line (ADL) over a chosen period of time. It was developed by Marc Chaikin.To use the Chaikin Oscillator as a beginner, you need to follow these steps:Choose a time frame: Decide on the period for which you want to analyze the security. The default period is 10 days, but you can modify it based on your preference and trading style.
-
7 min readFibonacci retracements are a technical analysis tool used in swing trading to identify potential levels of support and resistance. It is based on the sequence of numbers discovered by the Italian mathematician Leonardo Fibonacci.In Fibonacci retracements, swing traders attempt to predict future levels of price retracement (pullbacks) after a significant market move. The key levels identified are 23.6%, 38.2%, 50%, 61.8%, and 78.6% of the original move.
-
7 min readThe Money Flow Index (MFI) is a technical indicator that is commonly used by traders for scalping in the financial markets. Scalping is a trading strategy that involves making small profits from multiple trades over short periods of time. The MFI is an oscillator that measures the momentum of money flowing into or out of a particular asset.
-
9 min readParabolic SAR, also known as Stop and Reverse, is a technical analysis indicator used by swing traders to determine the overall direction of a stock's price movement and potential reversal points. It assists traders in setting stop-loss levels and identifying potential entry and exit points.Here's how you can use Parabolic SAR for swing trading:Calculation: Parabolic SAR is calculated using an algorithm that factors in the previous price data.