Posts (page 14)
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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.
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9 min readThe Relative Strength Index (RSI) is a popular technical indicator used by traders to assess the strength and momentum of a financial instrument. When day trading, the RSI can provide valuable insights into overbought or oversold conditions, potential trend reversals, and possible entry or exit points.To use RSI effectively for day trading, you need to understand how it is calculated and what the different levels indicate.
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9 min readKeltner Channels is a popular technical analysis tool used in trading to identify potential price reversals and gauge market volatility. It consists of three lines plotted on a price chart: the middle line, the upper line, and the lower line.The middle line is typically based on the average true range (ATR) of the asset being analyzed. ATR is a measure of the average price range over a specified period of time.
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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.
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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.
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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.