Moving average: probably the most widely used technical indicator Moving averages are among the most widely used technical indicators. I would even say moving average is the most widely used technical indicator, though no one can really know and count this. Moving averages enjoy this privilege thanks to their simplicity, both in calculation (or setup … Read more
How True Range is different from other indicators The concept of True Range and calculation of ATR (Average True Range) is confusing for many people, as you are actually comparing three values instead of applying one exact formula. This article is a detailed guide to calculation of True Range. I’ve tried to attach a few … Read more
Using Range for measuring volatility The easiest way to quickly measure market’s volatility during a particular trading day or week is by calculating the Range. Price Range is simply the absolute difference between the highest and the lowest price reached during a particular time period (e.g. a trading day). Range = High – Low S&P500 … Read more
RSI is an oscillator – it’s purpose it to make things simple RSI (Relative Strength Index) is one of the most widely used oscillators. Oscillators are indicators calculated from price and their main purpose is… (no, not to predict the future) … to simplify our view on price action by removing the trend factor. Oscillators … Read more
This article is a detailed guide how to calculate the Relative Strength Index (RSI). RSI formula RSI = 100 – 100 / ( 1 + RS ) RS = Relative Strength = U / D U = average of all up moves in the last N price bars D = average of all down moves … Read more
There are many ways how to trade with MACD. You can read more about trend-following MACD trading and counter-trend trading. MACD Histogram vs. MACD In one of the previous articles we were discussing how MACD Histogram is (or in fact isn’t) different from the basic MACD and also the advantage of displaying the information in … Read more
MACD MACD (Moving Average Convergence/Divergence) is a widely known indicator. Its core idea is measuring the distance between two exponential moving averages with different period lengths. A little less known, but claimed by many to be more useful, is an indicator derived from the MACD, the MACD Histogram. Thomas Aspray was reportedly the first to … Read more
MACD Histogram vs. MACD relationship MACD Histogram is an indicator derived from MACD. The value of MACD Histogram equals the distance between the MACD line and the Signal line, which is an exponential moving average of the MACD line. Therefore MACD Histogram is just a different way of looking at the information already provided by … Read more
MACD (Moving Average Convergence/Divergence) There are numerous ways how to trade MACD in the direction of current trend (read more about MACD crossovers). Though MACD is built on exponential moving averages, which make many people immediately think about trend following, there are also ways to use the MACD for counter-trend trading and spotting probable reversals. … Read more
All MACD lines and their crossing On a typical chart the MACD shows two lines (the MACD line and the Signal line), as well as the zero line. They cross each other often enough to give us plenty of options for building various MACD crossover trend following strategies. Some of them are the classics of … Read more
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