Technical Indicators

RSI

The Wilder’s Relative Strength Index (RSI) is a rate of change oscillator developed by J. Welles Wilder, Jr. This indicator is used to identify positive and negative divergences with price, and to signal overbought or oversold conditions. A reading of 70% or

Relative Strength Index (RSI) Indicator

Welles Wilder introduced the Relative Strength Index in 1978. RSI is widely used as an overbought/oversold indicator. It compares the amount of a security’s recent gains to the amount of its recent losses on a scale from 0 to 100. Nor

Welles Wilder and his Indicators

An Engineer, turned real estate developer, turned technical analyst, Welles Wilder developed several important technical indicators including Average True Range, the Relative Strength Index, Directional Movement and the Parabolic Stop and Reverse. See also: Interv

Weighted Close Indicator

The Weighted Close indicator is an average of each day’s price. Twice as much weight is given to the closing price as is given to the sum of the daily high and daily low. The Median Price and Typical Price are similar indicators. Chart courtesy of Prophet F

Sentiment Indicators

Sentiment Indicators attempt to measure the overall bullish or bearish attitude towards the market among traders and investors. They are normally used as a contrarian indicator – for example when the market participants are most bullish a bearish reversal is most likely to occur. Sentiment Ind

Rate of Change Indicator

Volume ROC displays the Rate of Change of a security’s volume. Chart courtesy of Prophet Financial Systems (www.prophet.net)

Volume Oscillator

The Volume Oscillator identifies whether the volume trend is increasing or decreasing by using the difference between a longer and a shorter moving average of volume. When the Volume Oscillator rises above zero the shorter-term volume moving average has r

Volume Accumulation Oscillator

The Volume Accumulation Oscillator, also known as the Chaikin Oscillator after it’s founder Mark Chaikin, shows the cumulative volume adjusted by the difference between the close and the midpoint of the day’s range. Divergence between volume and price

Vertical Horizontal Filter

Created by Adam White, the Vertical Horizon Filter tries to indicate whether a security is trending or in a trading range. A rising Vertical Horizon Filter indicates that a trend is forming. A declining Vertical Horizontal Filter suggests that the trend is ending and the security i

Upside Downside Volume

The Upside/Downside Volume indicator reflects the difference between advancing and declining volume on the New York Stock Exchange. Chart courtesy of Prophet Financial Systems (www.prophet.net)