Technical Indicators Archives - Traders Log

Ichimoku Kinko Hyo

TradersLog — Mon, 28 Sep 2009 17:23:09 +0000

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

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Breadth Thrust

TradersLog — Mon, 28 Sep 2009 17:14:56 +0000

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

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Bollinger Bands® Indicator

TradersLog — Mon, 28 Sep 2009 17:13:52 +0000

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

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Absolute Breadth Index

TradersLog — Mon, 28 Sep 2009 17:10:35 +0000

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

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Stochastics

TradersLog — Mon, 28 Sep 2009 17:05:04 +0000

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

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Exponential Moving Average

TradersLog — Mon, 28 Sep 2009 16:55:58 +0000

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

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RSI Introduction

TradersLog — Mon, 28 Sep 2009 16:55:44 +0000

RSI was introduced by Welles Wilder in the late 1970’s. Wilder observed that you should initiate the trade when the momentum indicator changes direction only when the average upmove is greater than the average downmove over a given number of days, or the inverse for a sell signal – when the average momentum is relatively

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Standard Deviation Channel

TradersLog — Mon, 28 Sep 2009 16:37:38 +0000

The Standard Deviation Channel consists of two parallel lines on either side of the Linear Regression Trendline. The lines are spaced x number of standard deviations above and below the Linear Regression Trendline.

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Williams Accumulation Distribution

TradersLog — Mon, 28 Sep 2009 16:36:54 +0000

Developed by Larry Williams, the Williams’ Accumulation/ Distribution indicator aims to reflect whether the market is controlled by buyers (accumulation) or by sellers (distribution). Prices making a new low along with the A/D indicator failing to reach a new low suggests that accumulation is taking place and creates a buy signal. Prices making a new

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