Traders and analysts have been developing market indicators for decades. Many of these indicators are simply measuring the same idea in only a slightly different way since most indicators are based on the same limited amount of market information.
Williams %R is based on a similar concept to RSI – measuring the latest close in relation to it’s price range over a given number of days. The same concept apply to this indicator, the divergence of the indicator with price in extreme areas being the most imortant.
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).
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.
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 Financial Systems (www.prophet.net)
Volume ROC displays the Rate of Change of a security’s volume.
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 risen above the longer-term volume moving average. This means that the short-term volume trend is higher …
The True Strength Index (TSI) is a momentum-based indicator, designed to identify trend and overbought/oversold markets.
The Stochastic RSI uses RSI values and their relationship over time to determine entry and exit points and to confirm other indicators’ signals. Chart courtesy of Prophet Financial Systems (www.prophet.net)