Introduction to CCI

Donald Lambert’s CCI compares current price with a moving average over a selected timeframe (usually 20 days). He normalizes the oscillator by using a divisor based on mean deviation. The indicator is based on the idea that commodities (or stocks or bonds) move in cycles, with highs and lows coming at periodic intervals. It uses … Read more

Ichimoku Kinko Hyo

Ichimoku Kinko Hyo is a technical indicator published over 30 years ago in Japan. It measures market momentum and trend and also outlines levels of support and resistance. Ichimoku means ‘one look’ in Japanese and this reflects the indicators intent to measure multiple aspects of the market at once. This indicator was developed so that … Read more

Ichimoku Kinko Hyo

Ichimoku Kinko Hyo is a technical indicator developed by a Japanese journalist in the 1960’s. Ichimoko literally translates to ‘one look’ – suggesting the multi-faceted aspect of this indicator. The Ichimoku indicator suggests support and resistance levels, trend bias as well as giving entry and exit signals for trades. The Ichimoku indicator made up of … Read more

Breadth Thrust

Developed by Dr. Martin Zweig, the Breadth Thrust Indicator measures market momentum. It is calculated by dividing a 10-day exponential moving average of the number of advancing issues by the number of advancing plus declining issues. When the indicator rises from below 40% to above 61.5% this reflects a thrust in the market having changed … Read more

Commodity Channel Index (CCI)

The Commodity Channel Index is an oscillator that indicates when a security is overbought or oversold. Developed by Donald Lambert, the CCI is designed to identify cyclical turns in commodities and other securities. Along with the Average Directional Index, the CCI provides insight on how a market it trending. The CCI uses the difference between … Read more

Bollinger Bands® Indicator

A popular indicator created by John Bollinger that allows users to compare volatility and relative price levels over a period of time. It consists of three bands designed to cover the majority of a security’s price action. Prices are considered to be overextended or overbought at the upper band which is thus considered a resistance … Read more

Accumulation Distribution Line

A momentum indicator developed by Marc Chaikin to assess the cumulative flow of money into and out of a security. He decided to focus on the price action for a given period and derived a formula to calculate a value based on the location of the close, relative to the range for the given period. … Read more

Absolute Price Oscillator (APO)

An indicator based on the difference between two exponential moving averages, expressed in absolute terms. Also known as the MACD indicator, the APO is calculated by subtracting the longer exponential moving average from the shorter exponential moving average. See also: Price Oscillator (PO), Percentage Price Oscillator (PPO).