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 …
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 …
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 …
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).
Referred to as a market momentum indicator, the absolute breadth index (ABI) is equal to the absolute value of the difference between the advancing issues and the declining issues. It shows how much activity and volatility and change is taking place on the NYSE while ignoring the direction prices are going. It shows only market …
This classic momentum indicator was first popularized by George Lane. Stochastics are based on the observation that in an uptrend as prices increase, closing prices gravitate to the upper end of the price range. In downtrends as prices fall you expect prices to close at the lower end of the range. The stochastics indicator compares …
The Exponential Moving Average is the most popular of all the versions of the moving average. The exponentially smoothed moving average gives greater weight to recent price data and also includes all the data in the life of the security. The user is able to adjust the weighting for the most recent price data by …