Blog

12 minutes read
The Chaikin Money Flow (CMF) is a technical indicator that helps day traders analyze the accumulation and distribution of money in a stock or financial instrument. It was developed by Marc Chaikin and is based on the concept that a price trend is likely to continue if there is strong buying or selling pressure.CMF is calculated using both price and volume data. The indicator measures the volume-weighted average of accumulation/distribution over a specific period.
9 minutes read
Chandelier Exit is a technical indicator that is commonly used in swing trading to help traders identify potential exit points for their trades. It was developed by Chuck LeBeau and introduced in 1992.To read the Chandelier Exit indicator for swing trading, you need to understand its components and how they interact with price movements. The indicator is based on three main factors: price, a trailing stop, and a volatility multiplier.
8 minutes read
The Relative Strength Index (RSI) is a commonly used technical analysis indicator that helps measure the magnitude and speed of price movements. It is primarily used to identify overbought or oversold conditions in a particular security or asset. Here's a brief explanation of how to use the RSI indicator:Understanding the RSI scale: The RSI scale ranges from 0 to 100. Generally, a value above 70 indicates overbought conditions, suggesting that the asset may be due for a price correction.
10 minutes read
Candlestick Patterns indicator is a tool commonly used in technical analysis to predict potential market trends and reversals. It works by analyzing the shape and structure of individual candlesticks on a price chart.Each candlestick represents the price movement of an asset over a specific time period, such as a minute, an hour, or a day. The indicator focuses on the open, high, low, and close prices of each candlestick to assess the underlying market sentiment.
11 minutes read
The Ichimoku Cloud is a technical analysis indicator used in trading to provide insights into the direction, momentum, and potential reversal points of an asset's price. It was developed by Japanese journalist Goichi Hosoda in the late 1960s, hence the name Ichimoku Cloud, which translates to "one glance cloud" in Japanese.The Ichimoku Cloud consists of several components.
12 minutes read
Simple Moving Average (SMA) is a popular technical analysis indicator used by traders to identify trends and potential buying or selling opportunities in the financial markets. It is a basic calculation that provides an average price over a specified period of time.To read the Simple Moving Average, you need to follow these steps:Choose a time frame: Decide on the period for which you want to calculate the SMA. Common timeframes include 50 days, 100 days, or 200 days.
8 minutes read
The Stochastic Oscillator is a technical analysis tool used to measure the momentum of an asset's price movements. It helps traders identify potential overbought and oversold conditions in the market. To understand how the Stochastic Oscillator is calculated, we need to break it down into three main components: the highest high, the lowest low, and the current closing price.Step 1: Calculate the highest high and lowest lowBy looking at a specific time period (e.g.
12 minutes read
The Elder-Ray Index, which was developed by Dr. Alexander Elder, is a technical analysis tool used in trading to assess the strength of a trend and potential buying or selling opportunities. It consists of two components: the Bull Power and Bear Power.Bull Power is calculated by subtracting the exponential moving average (EMA) of the daily lows from the high price of the day. This indicator shows the upward strength of the market and the ability of buyers to push prices higher.
9 minutes read
The Percentage Price Oscillator (PPO) is a technical indicator used in financial markets to analyze price momentum. It is a variation of the more commonly known Moving Average Convergence Divergence (MACD) indicator. As the name suggests, the PPO measures the percentage difference between two moving averages of a security's price.To calculate the PPO, first, two different moving averages of the price are chosen. Typically, a longer-term moving average (e.g.
8 minutes read
The Elder-Ray Index is a technical analysis indicator that helps traders and investors assess the buying and selling pressure in the market. Developed by Dr. Alexander Elder, it consists of two components – the Bear Power and the Bull Power.The Bear Power measures the strength of the sellers in the market by comparing the lowest price of the current period with the Exponential Moving Average (EMA) of a chosen period.