Posts (page 9)
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8 min readTriple Exponential Average (TRIX) is a technical indicator used in technical analysis to determine the momentum of a market. It is based on the exponential moving average (EMA) and is designed to filter out short-term fluctuations and highlight the overall trend of the market.To calculate TRIX, we first calculate a single EMA of the closing prices over a specific time period, usually 14 days. Then, we calculate a second EMA of this EMA and finally, a third EMA of the second EMA.
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7 min readThe Vortex Indicator is a technical analysis tool that helps traders identify the trend changes in the stock market. It consists of two lines, namely the positive vortex line (VI+) and the negative vortex line (VI-). The VI+ line measures the upward movement or positive trend, while the VI- line measures the downward movement or negative trend.The Vortex Indicator calculates directional movement by comparing previous highs and lows.
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8 min readThe Price Rate of Change (ROC) is a technical indicator used to measure the percentage change in the price of an asset over a specific time period. It is a momentum oscillator that helps traders and investors identify the rate at which the price is changing.Interpreting the Price ROC involves understanding its values and patterns.
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8 min readRate of Change (ROC) is a mathematical concept used to measure the speed or velocity at which a variable changes over a specific period of time. It is widely employed in various fields such as physics, finance, economics, and statistics to analyze and interpret trends and patterns in data.To calculate the rate of change, you need to determine the difference between two data points and divide it by the time it took for that change to occur.
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9 min readThe Ichimoku Cloud is a technical analysis indicator used in trading to assess market trends and generate trading signals. It consists of several components that are calculated using specific formulas. Here is an explanation of how the different elements of the Ichimoku Cloud are calculated:Tenkan-Sen (Conversion Line): The Tenkan-Sen is calculated by summing the highest high and lowest low over a specific period (typically 9 periods) and dividing it by two.
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10 min readThe Percentage Price Oscillator (PPO) is a technical analysis tool used by traders and investors to identify potential buying and selling opportunities in the financial markets. It is a variation of the popular Moving Average Convergence Divergence (MACD) indicator.The PPO measures the difference between two moving averages of different time periods and expresses it as a percentage.
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10 min readThe Parabolic SAR (Stop and Reverse) is a technical indicator used in trading to determine potential entry and exit points in a market. It is primarily utilized in trending markets where price movements show a clear direction. The indicator was developed by J. Welles Wilder Jr., a renowned technical analyst.The Parabolic SAR consists of small dots on a price chart, either above or below the price bars.
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10 min readThe Chaikin Oscillator is a popular technical indicator used in trading to measure the accumulation and distribution of money flow in a stock or market. Developed by Marc Chaikin, it combines both volume and price data to provide insights into the strength or weakness of a trend.To read the Chaikin Oscillator, traders usually look for the following signals and patterns:Divergence: When the Chaikin Oscillator moves in the opposite direction of the price trend, it indicates a potential reversal.
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10 min readCandlestick patterns are a popular tool used by traders to analyze market sentiment and make informed trading decisions. These patterns are formed by the arrangement of price data (open, high, low, and close values) over a specific time period.Interpreting candlestick patterns involves understanding the different patterns and their implications on price movement.
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10 min readBollinger Bands are a widely used technical indicator that helps traders analyze market volatility and identify potential trading opportunities. They consist of a simple moving average (SMA) line in the middle and two additional lines called the upper band and lower band.The calculation of Bollinger Bands involves three main components: the period, the standard deviation, and the multiplier. The period represents the number of data points used to calculate the SMA.
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8 min readRelative Strength Index (RSI) is a technical analysis oscillator that is widely used by swing traders to identify potential buy or sell signals in financial markets. It measures the strength and weakness of price movements over a specified period of time, generally 14 days, and can be applied to any market, such as stocks, currencies, or commodities.The RSI is a momentum indicator that oscillates between 0 and 100.
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10 min readBollinger Bands are a popular technical analysis tool used in stock trading. They were developed by John Bollinger in the 1980s and are often used by traders to identify trends, potential reversals, and overall market volatility.Bollinger Bands consist of three lines on a stock price chart. The middle line is a simple moving average (SMA), usually based on a 20-day period. The other two lines are called the upper band and lower band.