True Strength Index

The True Strength Index (TSI) is a momentum-based indicator, designed to identify trend and overbought/oversold markets. Chart courtesy of Prophet Financial Systems (www.prophet.net)

QStick Indicator

QStick is a technical indicator developed by Tushar Chande to help identify trends on a Japanese Candlestick chart. It is a moving average of the difference between the opening and closing prices of a security. Chart courtesy of Prophet Financial Systems

Directional Movement Indicator (DMI)

Developed by Welles Wilder and explained in his book, New Concepts in Technical Trading Systems, the Directional Movement Indicator can be used by itself or as a filter on a trend-following system. The DMI helps determine if a security is trending. In a DMI study, two lines are generated: +DI and -DI. The first line … Read more

Price and Volume Trend

The Price and Volume Trend (PVT) Indicator is similar to the On Balance Volume (OBV) Indicator, and is used to measure the strength of a trend. While OBV adds all volume on days when prices close higher and subtracts all volume on days when prices close lower, PVT adds or subtracts only part of the … Read more

Average Directional Index (ADX)

Developed by J. Welles Wilder, the Average Directional Index (ADX) measures the degree of directional movement and reflects strength of a trend. The ADX line measures the directional movement as an oscillator on a scale of 0 to 100. Readings below 20 reflect a weak trend and readings above 40 reflect a strong trend. Readings … Read more