Trading Indicators
Majority of technical indicators are derivatives of price, volume, and open interest. Some exotic ones utilize breadth data, tick data, bid/ask information, and price ladder data to compute their values. The goal is simple – to assist the traders in figuring out where the market is heading.
All indicators have their strengths and weaknesses. No indicator is perfect. It does not matter how complex an indicator is computed. If it has no predictive value, it is not going to be useful in your trading. Hence, the important thing is that you understand what your indicator can and cannot do so that you can use it properly.
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alphabetical order | posting date
Average Range vs. Average True Range - Which one is better?
Many traders talk about ATR which stands for Average True Range, but from time to time you see indicators and technical analysis based on the Average Range, AR. So what's the difference and which one is better? What is Average Range The range ...
Many traders talk about ATR which stands for Average True Range, but from time to time you see indicators and technical analysis based on the Average Range, AR. So what's the difference and which one is better? What is Average Range The range ...
Basic Chart Reading - What is Divergence Anyway?
Since the first Basic Chart Reading article was written, I received many emails asking the fundamental question, "What is Divergence?". I will try to explain what I know about this concept, hopefully, as precise as possible. Divergence is Abou ...
Since the first Basic Chart Reading article was written, I received many emails asking the fundamental question, "What is Divergence?". I will try to explain what I know about this concept, hopefully, as precise as possible. Divergence is Abou ...
Detecting Moving Average Crossover Before It Happens
Have you ever wish for the moving averages to crossover earlier? I am going to show you a way to detect moving average crossovers before they actually happen. The Advantage Being able to know that the moving averages are going to crossover ...
Have you ever wish for the moving averages to crossover earlier? I am going to show you a way to detect moving average crossovers before they actually happen. The Advantage Being able to know that the moving averages are going to crossover ...
Is Windows 10 Ready for Production Level Automated Day Trading?
Windows 10 was released back in year 2015. Back then it was new. It had many hardware incompatibilities and bugs that just crash without any warning. Windows 8 was a total write off. That leaves only Windows 7 as the viable option for traders to set ...
Windows 10 was released back in year 2015. Back then it was new. It had many hardware incompatibilities and bugs that just crash without any warning. Windows 8 was a total write off. That leaves only Windows 7 as the viable option for traders to set ...
Moving Average Is More Than What You Think - Part 1
Many traders after being in the business for couple of years will start to dismiss many things they have seen, be that moving average, stochastics, MACD, etc. To these traders, these indicators are just useless, lagging, and somethings simply mislead ...
Many traders after being in the business for couple of years will start to dismiss many things they have seen, be that moving average, stochastics, MACD, etc. To these traders, these indicators are just useless, lagging, and somethings simply mislead ...
Moving Average Is More Than What You Think - Part 2
We now know that moving average can be measured more effectively when average bar range is used as the yardstick. How do we utilitize this information? If You Like Channel If you like using channel, it is obvious that our understanding of the ...
We now know that moving average can be measured more effectively when average bar range is used as the yardstick. How do we utilitize this information? If You Like Channel If you like using channel, it is obvious that our understanding of the ...
Moving Average Is More Than What You Think - Part 3
Some readers are very forthcoming, they simply email me and complained to me for wasting their time in talking about moving average as something that is useful at all. I replied through email asking for their patience and wrapped up this third instal ...
Some readers are very forthcoming, they simply email me and complained to me for wasting their time in talking about moving average as something that is useful at all. I replied through email asking for their patience and wrapped up this third instal ...
Range Based Look Back Technique
Indicator traders and trading system designers often use stock indicators from their trading platforms to construct their trading engagement methods and trading models. There are two problems when approaching the markets this way. First, you are usin ...
Indicator traders and trading system designers often use stock indicators from their trading platforms to construct their trading engagement methods and trading models. There are two problems when approaching the markets this way. First, you are usin ...
Setting Up Windows 10 for Serious Trading
After talking about Windows being ready for mission critical application last time, I guess it makes sense to explain what has to be done to turn a normal Windows 10 installation to something suitable for trading. There are several steps to carry out ...
After talking about Windows being ready for mission critical application last time, I guess it makes sense to explain what has to be done to turn a normal Windows 10 installation to something suitable for trading. There are several steps to carry out ...
Stock Trading Using Stochastics (End of Day)
Stochastics is one of the most widely used technical indicators in the world. Surprisely, most traders like to modify the original indicator into something else because they find the original implementation too noisy. I am going to show you a trad ...
Stochastics is one of the most widely used technical indicators in the world. Surprisely, most traders like to modify the original indicator into something else because they find the original implementation too noisy. I am going to show you a trad ...