Finance

10 minutes read
The Detrended Price Oscillator (DPO) is a technical indicator that helps traders identify cycles and overbought/oversold conditions in the market. It is used to eliminate or reduce the effect of trends, making it easier to spot short-term market cycles.Trading with the DPO involves the following steps:Calculating the DPO: The DPO is calculated by taking the price of an instrument and subtracting the n-day simple moving average (SMA) of the instrument's price action.
10 minutes read
Candlestick patterns are formed by the price movements of an asset over a certain time period, commonly depicted on a chart. The calculations involved in reading candlestick patterns are relatively simple. Every candlestick consists of four main components: the open, close, high, and low prices.The open price represents the first traded price of an asset during a specific time interval, while the close price represents the last traded price within the same period.
8 minutes read
The Arms Index, also known as the Trading Index (TRIN), is a technical analysis indicator that measures market sentiment by comparing the volume of advancing stocks to the volume of declining stocks alongside the advancing volume and declining volume. It was developed by Richard Arms in 1967 as a tool to assess the strength or weakness of a stock market.
13 minutes read
The Triple Exponential Average (TRIX) is a technical indicator commonly used by traders for scalping strategies. Scalping involves making quick trades to take advantage of small price movements in the market. The TRIX indicator helps traders identify the trend direction, momentum, and potential reversal points.The TRIX indicator is based on a triple moving average of the underlying price data.
12 minutes read
The Percentage Price Oscillator (PPO) is a technical analysis tool that helps identify potential buy and sell signals in swing trading. It is derived from the Moving Average Convergence Divergence (MACD) indicator and measures the percentage difference between two moving averages.The PPO is calculated by subtracting the longer-term moving average from the shorter-term moving average and dividing the result by the longer-term moving average.
13 minutes read
Exponential Moving Average (EMA) is a technical analysis indicator used to calculate the average price of an asset over a specific period of time. It is similar to the Simple Moving Average (SMA) but gives more weight to recent data points. The EMA places greater importance on the most recent price data, making it more responsive to changes in price trends.To calculate the EMA, you start by selecting a time period (e.g., 10 days) and a smoothing factor (e.g., 2/(1+10)).
9 minutes read
The Chande Momentum Oscillator (CMO) is a technical analysis tool developed by Tushar Chande, a prominent trader and author. The CMO is used to determine the momentum of a particular asset or security by comparing the current price to the average price over a defined period of time.The CMO is calculated by taking the difference between the sum of positive and negative price changes over a given period and dividing it by the sum of total price movements over the same period.
8 minutes read
The Acceleration Bands is a technical analysis indicator developed by Price Headley, a renowned expert in market analysis and trading. These bands are used to identify potential price breakouts or trend reversals in the financial markets.Trading with Acceleration Bands involves using two bands, an upper band and a lower band, along with a central moving average line. The upper band is plotted above the moving average line, while the lower band is plotted below it.
12 minutes read
The Chande Momentum Oscillator (CMO) is a technical analysis tool that helps traders and analysts measure the momentum of a financial instrument. It was developed by Tushar Chande and is primarily used to identify overbought and oversold conditions in the market.The CMO is calculated based on the difference between the sum of gains and losses over a specified period.
12 minutes read
The Commodity Channel Index (CCI) is a technical indicator that was developed by Donald Lambert in 1980. It is widely used in technical analysis to identify overbought and oversold levels as well as potential trend reversals in various financial markets.The CCI is calculated by measuring the distance between the current price and its average over a specified period, usually 20 or 14 days.