Moving Averages are used to smooth the data in an array to help eliminate noise and identify trends. The Simple Moving Average is literally the simplest form of a moving average. Each output value is the average of the previous n values.
Moving averages smooth the data in an array to help eliminate noise and identify trends. The Exponential MA differs from the Simple MA in that the divisor is not the number of periods but an expontential constant .
Moving Average Convergence Divergence (MACD) is the difference between two Exponential Moving Averages. The Signal line is an Exponential Moving Average of the MACD.
The Least Squares Moving Average first calculates a least squares regression line over the preceding time periods, then projects it forward to the current period. It calculates what the value would be if the regression line continued.
The Weighted Moving Average calculates a weight for each value in the series. The more recent values are assigned greater weights. The Weighted Moving Average is similar to a Simple Moving average in that it is not cumulative, that is, it only includes values in the time period (unlike an Exponential Moving Average).
The Triangular Moving Average is a form of Weighted Moving Average wherein the weights are assigned in a triangular pattern. For example, the weights for a 7 period Triangular Moving Average would be 1, 2, 3, 4, 3, 2, 1.
The DEMA is a smoothing indicator with less lag than a straight exponential moving average. DEMA is an acronym for Double Exponential Moving Average, but the calculation is more complex than just a moving average of a moving average.
The T3 is a type of moving average, or smoothing function. It is based on the DEMA. The T3 takes the DEMA calculation and adds a vfactor which is between zero and 1. The resultant function is called the GD, or Generalized DEMA.
TEMA is a smoothing indicator with less lag than a straight exponential moving average. TEMA is an acronym for Triple Exponential Moving Average, but the calculation is more complex than that.
Kaufman's Adaptive Moving Average (KAMA) is a moving average designed to account for market noise or volatility. KAMA will closely follow prices when the price swings are relatively small and the noise is low.
MESA Adaptive Moving Average is a technical trend-following indicator which adapts to price movement “based on the rate change of phase as measured by the Hilbert Transform Discriminator”.
The TRIX indicator calculates the 1 day rate of change of a triple exponential moving average. The values oscillate around zero. Buy/sell signals are generated when the TRIX crosses above/below zero.
The ADX is a Welles Wilder style moving average of the Directional Movement Index (DX). The values range from 0 to 100, but rarely get above 60. To interpret the ADX, consider a high number to be a strong trend, and a low number, a weak trend.
The ADXR is equal to the current ADX plus the ADX from n bars ago divided by 2. In effect, it is the average of the two ADX values. The ADXR smoothes the ADX, and is therefore less responsive, however, the ADXR filters out excessive tops and bottoms.
The +DI is the percentage of the true range that is up. The -DI is the percentage of the true range that is down. A buy signal is generated when the +DI crosses up over the -DI. A sell signal is generated when the -DI crosses up over the +DI.
The DX is usually smoothed with a moving average (i.e. the ADX). The values range from 0 to 100, but rarely get above 60. To interpret the DX, consider a high number to be a strong trend, and a low number, a weak trend.
The Aroon indicator attempts to show when a new trend is beginning. The indicator consists of two lines (Up and Down) that measure how long it has been since the highest high/lowest low has occurred within an n period range.
Accumulation/Distribution Line sums the volume times +1/-1 based on whether the close is higher than the previous close. The Accumulation/Distribution indicator, however multiplies the volume by the close location value (CLV).
The Rate of Change measures rate of change relative to previous periods - it is used to determine how rapidly the data is changing. The formula used is ((price/prevPrice)-1)*100. It is commonly used with the price or close.
The Momentum is a measurement of the acceleration and deceleration of prices. It indicates if prices are increasing at an increasing rate or decreasing at a decreasing rate. The Momentum can be applied to the price, or to any other data series.
The RateOfChangePct is a measurement of the acceleration and deceleration of prices. It indicates if prices are increasing at an increasing rate or decreasing at a decreasing rate. The Momentum can be applied to the price, or to any other data series.
The ATR or Average True Range is a measure of volatility. High ATR values indicate high volatility, and low values indicate low volatility, often seen when the price is flat.
The CCI is designed to detect beginning and ending market trends and ranges from 100 to -100. CCI values outside of this range indicate overbought or oversold conditions. You can also look for price divergence in the CCI.
The Chaikin Money Flow compares the total volume over the last n time periods to the total of volume times the Closing Location Value (CLV) over the last n time periods. The CLV calculates where the issue closes within its trading range.
The Chaikin Oscillator (AKA Chaikin A/D Oscillator) is essentially a momentum of the Accumulation/Distribution Line. It is calculated by subtracting a 10 period exponential moving average of the A/D Line from a 3 period exponential moving average of the A/D Line.
This indicator averages the open, high , low and close of the bar
The De-trended Price first calculates a regression line for a time series, then subtracts the slope of the line from the price. By removing the trend from the time series, the result is a series of detrended prices.
The Money Flow Index calculates the ratio of money flowing into and out of a security. To interpret the Money Flow Index, look for divergence with price to signal reversals. Money Flow Index values range from 0 to 100.
The MidPoint indicator calculates the average of the High and Low of the bar.
The On Balance Volume (OBV) is a cumulative total of the up and down volume. When the close is higher than the previous close, the volume is added to the running total, and when the close is lower than the previous close, the volume is subtracted from the running total.
The Standard Deviation is a statistical measure of volatility. It calculates the square root of the variance of each period. This is mutiplied by the factor NumDeviations
The Trend Score shows when price is trending by looking at up and down days. The trend is equal to one when the price is greater than or equal to the previous price, and as a negative one when the price is less than the previous price.
The Vertical Horizontal Filter (VHF) determines whether prices are trending. When the VHF is rising, it indicates the formation of a trend. Higher VHF values indicate a stronger trend.
The Parabolic SAR calculates a trailing stop. Simply exit when the price crosses the SAR. The SAR assumes that you are always in the market, and calculates the Stop And Reverse point when you would close a long position and open a short position or vice versa.
The Weighted Close is the average of the high, low and close of a bar, but the close is weighted, actually counted twice. It is used in the calculation of several indicators.
Variance is a measurement of the spread between numbers in a data set. ... Variance is calculated by taking the differences between each number in the set and the mean, squaring the differences (to make them positive) and dividing the sum of the squares by the number of values in the set.
The True Range function is used in the calculation of many indicators, most notably, the Welles Wilder DX. It is a base calculation that is used to determine the normal trading range of a stock or commodity.