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Indicator/Component Definitions
Drag And Drop Conditional Exit Rules
Name SubName Description
Moving Average Convergence/Divergence MACD The Moving Average Convergence Divergence (MACD) is the difference between two Exponential Moving Averages. The Signal line is an Exponential Moving Average of the MACD.
The MACD signals trend changes and indicates the start of new trend direction. High values indicate overbought conditions, low values indicate oversold conditions. Divergence with the price indicates an end to the current trend, especially if the MACD is at extreme high or low values. When the MACD line crosses above the signal line a buy signal is generated. When the MACD crosses below the signal line a sell signal is generated. To confirm the signal, the MACD should be above zero for a buy, and below zero for a sell.
The time periods for the MACD are often given as 26 and 12. However the function actually uses exponential constants of 0.075 and 0.15, which are closer to 25.6667 and 12.3333 periods. To create a similar indicator with time periods other than those built into the MACD, use the Price Oscillator function.
The MACD was developed by Gerald Appel.
Cross Formation (Value) Cross Over Value The Cross Over function fills an output Array with the results of a CrossOver test on the input Array and a constant value. The output arrays hold the Up/Down Values (1,-1). The output Array will contain:
ZERO (0) No Crossover occurred at this point
UP (1) An Up Crossover occurred at this point
DOWN (-1) A Down Crossover occurred at this point
Cross Formation (Signal) Cross Over Signal The Cross Over function fills an output Array with the results of a CrossOver test on the two input Arrays. The output arrays hold the Up/Down Values (1,-1). The output Array will contain:
Turn Formation Turn Signal The TurnFill function fills an output Array with the results of a Turn test on the input Array. The output Array will contain:
ZERO (0) No Turn occurred at this point
UP (1) An Up Turn occurred at this point
DOWN (-1) A Down Turn occurred at this point
Accumulation/Distribution Line AccumDist The Accumulation/Distribution Line is similar to the On Balance Volume (OBV), which sums the volume times +1/-1 based on whether the close is higher than the previous close. The Accumulation/Distribution indicator, however multiplies the volume by the close location value (CLV). The CLV is based on the movement of the issue within a single bar and can be +1, -1 or zero.
The Accumulation/Distribution Line is interpreted by looking for a divergence in the direction of the indicator relative to price. If the Accumulation/Distribution Line is trending upward it indicates that the price may follow. Also, if the Accumulation/Distribution Line becomes flat while the price is still rising (or falling) then it signals an impending flattening of the price.
The Accumulation/Distribution Line was developed by Marc Chaikin.
The Accumulation/Distribution Line should not be confused with the Williams Price Accumulation/Distribution indicator.
Accumulative Swing Index AccumSwingIndex The Accumulation Swing Index is a running total of the Swing Index. The Swing Index is calculated using only the two most recent bars, by summing it, the Accumulation Swing Index shows long-term trends. It will be positive in a long-term up trend, negative in a long-term down trend and it will hover around zero if the market is flat. The shape of the Accumulation Swing Index line closely matches the shape of the price line. It can be interpreted by comparing it to the price and looking for divergence or confirmation.
The Accumulation Swing Index was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
Accumulate or Running Total Accumulate The Accumulate function calculates the running total of the input data. This is especially useful if the input data contains both positive and negative values so that the output will vary around zero.
Average Directional Movement Index (ADX) ADX The ADX is a Welles Wilder style moving average of the Directional Movement Index (DX). The values range from 0 to 100, but rarely get above 60. To interpret the ADX, consider a high number to be a strong trend, and a low number, a weak trend.
See also +/-DI, DX and ADXR.
The ADX was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
Average Directional Movement Rating (ADXR) ADXR The ADXR is equal to the current ADX plus the ADX from n bars ago divided by 2. In effect, it is the average of the two ADX values. The ADXR smoothes the ADX, and is therefore less responsive, however, the ADXR filters out excessive tops and bottoms. To interpret the ADXR, consider a high number to be a strong trend, and a low number, a weak trend.
See also +/-DI, DX and ADX.
The ADXR was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
Ease of Movement ArmsEMV The EMV emphasizes days in which the stock is moving easily and minimizes the days in which the stock is finding it difficult to move. This indicator is used frequently with equivolume charts to identify market formations. A buy signal is generated when the EMV crosses above zero, a sell signal when it crosses below zero. When the EMV hovers around zero, then there are small price movements and/or high volume, which is to say, the price is not moving easily.
The volume is divided by a volume increment (typically 10,000) to make the resultant numbers larger and easier to work with. The EMV is usually smoothed with a moving average.
The Arms Ease of Movement indicator was developed by Richard W. Arms, Jr. See also Arms Index (TRIN).
Aroon Aroon The word aroon is Sanskrit for "dawn's early light." The Aroon indicator attempts to show when a new trend is dawning. The indicator consists of two lines (Up and Down) that measure how long it has been since the highest high/lowest low has occurred within an n period range.
When the Aroon Up is staying between 70 and 100 then it indicates an upward trend. When the Aroon Down is staying between 70 and 100 then it indicates an downward trend. A strong upward trend is indicated when the Aroon Up is above 70 while the Aroon Down is below 30. Likewise, a strong downward trend is indicated when the Aroon Down is above 70 while the Aroon Up is below 30. Also look for crossovers. When the Aroon Down crosses above the Aroon Up, it indicates a weakening of the upward trend (and vice versa).
The Aroon indicator was developed by Tushar S. Chande and first described in the September 1995 issue of Technical Analysis of Stocks & Commodities magazine.
Aroon Oscillator AroonOscillator The Aroon Oscillator is calculated by subtracting the Aroon Down from the Aroon Up. The resultant number will oscillate between 100 and -100. The Aroon Oscillator will be high when the Aroon Up is high and the Aroon Down is low, indicating a strong upward trend. The Aroon Oscillator will be low when the Aroon Down is high and the Aroon Up is low, indicating a strong downward trend. When the Up and Down are approximately equal, the Aroon Oscillator will hover around zero, indicating a weak trend or consolidation. See the Aroon indicator for more information.
Average True Range (ATR) ATR The ATR is a Welles Wilder style moving average of the True Range. The ATR is a measure of volatility. High ATR values indicate high volatility, and low values indicate low volatility, often seen when the price is flat.
The ATR is a component of the Welles Wilder Directional Movement indicators (+/-DI, DX, ADX and ADXR).
The ATR was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
Average Price AvgPrices The Average Price is the average of the open + high + low + close of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
See also Median Price, Typical Price and Weighted Close.
Bollinger Bands Bollinger Bollinger Bands consist of three lines. The middle band is a simple moving average (generally 20 periods) of the typical price (TP). The upper and lower bands are F standard deviations (generally 2) above and below the middle band. The bands widen and narrow when the volatility of the price is higher or lower, respectively.
Bollinger Bands do not, in themselves, generate buy or sell signals; they are an indicator of overbought or oversold conditions. When the price is near the upper or lower band it indicates that a reversal may be imminent. The middle band becomes a support or resistance level. The upper and lower bands can also be interpreted as price rgets. When the price bounces off of the lower band and crosses the middle band, then the upper band becomes the price rget.
See also Bollinger Width, Envelope, Price Channels and Projection Bands.
Bollinger Bands were developed by John Bollinger.
Bollinger Band Width BollingerWidth The Bollinger Band Width indicator is the distance between the upper and lower Bollinger Bands. It is a measure of volatility. The Band Width value is higher when volatility is high, and lower when volatility is low. High Band Width values indicate that the current trend may be about to end. Low Band Width values indicate that a new trend may be about to start.
See also Bollinger Bands.
Commodity Channel Index (CCI) CCI The CCI is designed to detect beginning and ending market trends. The range of 100 to -100 is the normal trading range. CCI values outside of this range indicate overbought or oversold conditions. You can also look for price divergence in the CCI. If the price is making new highs, and the CCI is not, then a price correction is likely.
The Commodity Channel Index was developed by Donald Lambert and is described in his article in the October 1980 issue of Commodities magazine (now called Futures).
Chicago Floor Trading Pivotal Point CFTPP This function is used by floor traders on Chicago Mercantile Exchange to calculate short term support and resistance levels for commodities. It consists of two support an two resistance levels.
Chaikin Money Flow ChaikinMoneyFlow The Chaikin Money Flow compares the total volume over the last n time periods to the total of volume times the Closing Location Value (CLV) over the last n time periods. The CLV calculates where the issue closes within its trading range.
When the Chaikin Money Flow is above 0.25 it is a bullish signal, when it is below -0.25, it is a bearish signal. If the Chaikin Money Flow remains below zero while the price is rising, it indicates a probable reversal.
The Chaikin Money Flow indicator was developed by Marc Chaikin.
Chaikin Oscillator ChaikinOscillator The Chaikin Oscillator (AKA Chaikin A/D Oscillator) is essentially a momentum of the Accumulation/Distribution Line. It is calculated by subtracting a 10 period exponential moving average of the A/D Line from a 3 period exponential moving average of the A/D Line. When the Chaikin Oscillator crosses above zero, it indicates a buy signal, and when it crosses below zero it indicates a sell signal. Also look for price divergence to indicate bullish or bearish conditions.
The Chaikin Oscillator was developed by Marc Chaikin.
Chaikin Volatility ChaikinVolatility The Chaikin Volatility indicator is the rate of change of the trading range. The indicator defines volatility as a increasing of the difference between the high and low. A rapid increases in the Chaikin Volatility indicate that a bottom is approaching. A slow decrease in the Chaikin Volatility indicates that a top is approaching.
The Chaikin Volatility indicator was developed by Marc Chaikin.
Chande Momentum Oscillator (CMO) CMO The Chande Momentum Oscillator is a modified RSI. Where the RSI divides the upward movement by the net movement (up / (up + down)), the CMO divides the total movement by the net movement ((up - down) / (up + down)).
There are several ways to interpret the CMO. Values over 50 indicate overbought conditions, while values under -50 indicate oversold conditions. High CMO values indicate strong trends. When the CMO crosses above a moving average of the CMO, it is a buy signal, crossing down is a sell signal.
The Chande Momentum Oscillator was developed by Tushar S. Chande and is described in the 1994 book The New Technical Trader by Tushar S. Chande and Stanley Kroll.
Moving Correlation Coefficient CorCoefMv The Moving Correlation Coefficient calculates a correlation coefficient of two data series over the last n periods. This statisical calculation is used to determine if two series of numbers are related. The closer the value is to 1, the closer the data is related.
Moving Covariance CovarianceMv The Moving Covariance calculates the covariance of two data series over the last n periods.
Commodity Selection Index (CSI) CSIndex The Commodity Selection Index is a composite indicator calculated by multiplying the ADXR (Average Directional Movement Rating) and the ATR (Average True Range) by a constant that incorporates the move value, commission and margin. The CSI selects commodities that are suitable for short term trading (those with high CSI values).
The Commodity Selection Index was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
DEMA DEMA The DEMA is a smoothing indicator with less lag than a straight exponential moving average. DEMA is an acronym for Double Exponential Moving Average, but the calculation is more complex than just a moving average of a moving average.
The DEMA was developed by Patrick Mulloy and is described in his article in the February, 1994 issue of Technical Analysis of Stocks & Commodities magazine.
See also Exponential Moving Average, TEMA and T3.
Demand Index DemandIdx The Demand Index is a market strength indicator based on price and volume that calculates a ratio buying pressure to selling pressure. It can be a leading indicator of price moves.
The Demand Index can be interpreted by looking for divergence with price to indicate impending price moves. Peaks in the Demand Index signal a coming peak in price. When the Demand Index hovers around zero, it indicates weak price moves.
The Demand Index was developed by James Sibbet.
Directional Indicators (+DI and -DI) DI The +DI is the percentage of the true range that is up. The -DI is the percentage of the true range that is down. A buy signal is generated when the +DI crosses up over the -DI. A sell signal is generated when the -DI crosses up over the +DI. You should wait to enter a trade until the extreme point is reached. That is, you should wait to enter a long trade until the price reaches the high of the bar on which the +DI crossed over the -DI, and wait to enter a short trade until the price reaches the low of the bar on which the -DI crossed over the +DI.
See also DX, ADX and ADXR.
The DI was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
Moving Dispersion DispersionMv The Moving Dispersion calculates the absolute change between values over a given time period.
Dynamic Momentum Index (DMI) DMI The Dynamic Momentum Index is a variable term RSI. The RSI term varies from 3 to 30. The variable time period makes the RSI more responsive to short-term moves. The more volatile the price is, the shorter the time period is. It is interpreted in the same way as the RSI, but provides signals earlier.
See also RSI.
The Dynamic Momentum Index was developed by Tushar S. Chande and Stanley Kroll and is described in their 1994 book The New Technical Trader.
Down Average DownAverage The Down Average is a Welles Wilder style moving average of the decreases between consecutive prices. Used in the calculation of the RSI.
Directional Movement Index (DX) DX The DX is usually smoothed with a moving average (i.e. the ADX). The values range from 0 to 100, but rarely get above 60. To interpret the DX, consider a high number to be a strong trend, and a low number, a weak trend.
See also +/-DI, ADX and ADXR.
The DX was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
Envelope Envelope The Envelope function creates plus and minus bands around series of numbers, based on a second series. A common use is creating support/resistance bands around the close.
See also Envelolpe Percent, Bollinger Bands, Price Channels and Projection Bands.
Envelope Percent EnvelopePct The Envelope Percent function creates plus and minus bands around series of numbers, based on a percentage of the series. A common use is creating support/resistance bands around the close.
See also Envelolpe, Bollinger Bands, Price Channels and Projection Bands.
Exponential Moving Average ExpMA The Exponential Moving Average is a staple of technical analysis and is used in countless technical indicators. In a Simple Moving Average, each value in the time period carries equal weight, and values outside of the time period are not included in the average. However, the Exponential Moving Average is a cumulative calculation, including all data. Past values have a diminishing contribution to the average, while more recent values have a greater contribution. This method allows the moving average to be more responsive to changes in the data.
See also Least Squares MA, Simple MA, Triangular MA, Weighted MA, Welles MA, Variable MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
Forecast Oscillator ForecastOscillator The Forecast Oscillator calculates the percentage difference between the actual price and the Time Series Forecast (the endpoint of a linear regression line). When the price and the forecast are equal, the Oscillator is zero. When the price is greater than the forecast, the Oscillator is greater than zero. When the price is less than the forecast, the Oscillator is less than zero.
If the Forecast Oscillator stays below zero, it indicates that prices are about to fall, and if the Oscillator stays above zero, it indicates that prices are about to rise. The signal is an exponential moving average of the Forecast Oscillator. When the Oscillator crosses above/below the signal line, then prices are expected to rise/fall.
The Forecast Oscillator was developed by Tushar S. Chande.
Ichimoku Kinko Hyo IchimokuKinkoHyo Ichimoku Kinko Hyo is Japanese for "one glance cloud chart." It consists of five lines called Tenkan-sen, Kijun-sen (sen is Japanese for line), Senkou Span A, Senkou Span B and Chinkou Span. The calculation uses four different time periods which we call termT, termK, termS and termC. The Ichimoku Kinko Hyo is graphed over the closing price line. The space between the Senkou spans is called the Cloud, and is usually graphed in a hatched pattern.
The Senkou Spans are support and resistance lines. When the price is in the Cloud, the market is non-trending. When the price is above the Cloud, the higher Span is the first support level and the lower Span is the second support level. When the price is below the Cloud, the lower Span is the first resistance level and the higher Span is the second resistance level.
Kijun-sen and Tenkan-sen are trend indicators. When the price is above the Kijun-sen, prices will likely continue to go up, when the price is below the Kijun-sen, prices will likely continue to go down. The direction of the Tenkan-sen indicates the direction of the trend. If the Tenkan-sen is flat, the market is in a non-trending channel.
A buy signal is generated when the Chinkou Span crosses over the price, or when the Tenkan-sen crosses over the Kijun-sen. A sell signal is generated when the Chinkou Span crosses under the price, or when the Tenkan-sen crosses under the Kijun-sen. Look for confirmation when both crosses occur.
The Ichimoku Kinko Hyo was developed by Goichi Hosoda before WWII, and published in 1969.
Intraday Momentum Index (IMI) IMI The Intraday Momentum Index is similar to the RSI, but uses the movement between the open and close whereas the RSI uses the movement between the close and the previous close. IMI values over 70 indicate an overbought condition, and values under 30 indicate oversold.
The Intraday Momentum Index was developed by Tushar S. Chande and Stanley Kroll and is described in their 1994 book The New Technical Trader.
Inertia Inertia The Inertia indicator is the Relative Volatility Index (RVI) smoothed with a Least Squares Moving Average. Like the RVI, the Inertia ranges from 0 to 100. Inertia signals long-term trends. Positive Inertia is indicated by values above 50, while values below 50 indicate negative inertia (slowing).
The Inertia indicator was developed by Donald Dorsey and was introduced his article in September, 1995 issue of Technical Analysis of Stocks & Commodities magazine.
Klinger Oscillator (KO) KO The Klinger Oscillator uses a combination of high-low trading range, volume and accumulation/distribution to find trading tops and bottoms. The KO is used with a signal line which is a 13 period Exponential Moving Average of the KO.
To interpret the KO, look for divergence with the price to signal the coming end of a trend, or to indicate that rising/falling prices are not forming a new trend. A buy signal is generated when the KO rises from below zero to cross above the trigger line. A sell signal is generated when the KO falls from its high and crosses below the trigger line.
The Klinger Oscillator is also known as the Klinger Volume Oscillator or KVO.
The Klinger Oscillator was developed by Stephen J. Klinger and was first presented in his article in the Winter 1994/Spring 1995 issue of MTA Journal.
Least Squares Moving Average LstSqrMA The Least Squares Moving Average first calculates a least squares regression line over the preceding time periods, then projects it forward to the current period. In essence, it calculates what the value would be if the regression line continued.
The Least Squares Moving Average is also known as an Endpoint Moving Average, a Time Series Moving Average or a Time Series Forecast.
See also Exponential MA, Simple MA, Triangular MA, Weighted MA, Welles MA, Variable MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
Moving Average Envelope MAEnvelope The MA Envelope function creates high and low bands around a moving average.
Moving Averages of the High and Low MAHighLow The MA High Low function creates moving averages of the high and the low.
Mass Index MassIndex The Mass Index is a moving sum of a 9 period Exponential Moving Average of the trading range (high minus low) divided by the double smoothed moving average of the range. The Mass Index is intended to identify trend reversals. Higher Mass Index values are created by widening trading ranges, which indicate a trend reversal.
The MASS Index was developed by Donald Dorsey and was presented in his article in the June, 1992 issue of Technical Analysis of Stocks & Commodities magazine.
Median Price MedianPrices The Median Price is the average of the high + low of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
See also Average Price, Typical Price and Weighted Close.
MESA Sinewave MESAsinewave The Mesa Sine Wave calculates two sine curves. When the two curves resemble a sine wave, the market is in a cycle, otherwise the market is trending. Signals are generated only when the market is in a cycle. A buy signal is generated when the Sine crosses up over the Lead Sine, and a sell signal when the Sine crosses down below the Lead Sine.
The Mesa Sine Wave was developed by John Elhers and was introduced in his article in the November, 1996 issue of Technical Analysis of Stocks & Commodities magazine.
Market Facilitation Index (MFI) MFI Market Facilitation Index (MFI) is the trading range divided by the volume. The MFI measures the price movement per unit of volume.
To interpret the MFI, compare it to the volume. When the MFI is high and volume is low, it signals a fake trend which will soon reverse. When the MFI is low and volume is high, it signals a new trend in either direction is about to occur. When the MFI is low and volume is also low, it signals a fading market and an impending trend reversal. When the MFI is high and volume is also high, it signals a strong trend.
The Market Facilitation Index was developed by Dr. Bill Williams and is described in his 1995 book, Trading Chaos.
Momentum Momentum The Momentum is a measurement of the acceleration and deceleration of prices. It indicates if prices are increasing at an increasing rate or decreasing at a decreasing rate. The Momentum function can be applied to the price, or to any other data series.
Money Flow Index MoneyFlowIndex The Money Flow Index calculates the ratio of money flowing into and out of a security. To interpret the Money Flow Index, look for divergence with price to signal reversals. Money Flow Index values range from 0 to 100. Values above 80/below 20 indicate market tops/bottoms.
Moving Summation MovingSum The moving summation is the sum of the last n values. It is a Simple Moving Average without dividing the sum by n. The moving sum is used in the calculation of many indicators. It can also be used to modify any existing indicator.
Net Momentum Oscillator (NMO) NMO The Net Momentum Oscillator (NMO) is a variation on the RSI. Whereas the RSI based on the ratio of up periods to down periods, the NMO is the ratio of the momentum (up/down) to the absolute momentum (up + down) . The NMO is able to show overbought and oversold levels (greater than +50, less than -50) better than the RSI.
The Net Momentum Oscillator was developed by Tushar Chande and Stanley Kroll and was introduced in their article in the May, 1993 issue of Technical Analysis of Stocks & Commodities magazine.
Negative Volume Index (NVI) NVI Negative Volume Index (NVI) attempts to identify bull markets by showing what the smart investors are doing. It is based on the assumption smart investors dominate trading on light volume days and uninformed investors dominates trading on active days. The NVI changes on days when the volume is down and stays flat on up volume days. Look for the NVI to rise above its one year moving average to signal a bull market.
Also see the Positive Volume Index.
The Negative and Positive Volume Index were developed by Norman Fosback and are described in his 1976 book, Stock Market Logic.
On Balance Volume (OBV) OBV The On Balance Volume (OBV) is a cumulative total of the up and down volume. When the close is higher than the previous close, the volume is added to the running total, and when the close is lower than the previous close, the volume is subtracted from the running total.
To interpret the OBV, look for the OBV to move with the price or precede price moves. If the price moves before the OBV, then it is a non-confirmed move. A series of rising peaks, or falling troughs, in the OBV indicates a strong trend. If the OBV is flat, then the market is not trending.
The On Balance Volume was developed by Joseph Granville and is described in his 1963 book, New Strategy of Daily Stock Market Timing for Maximum Profit.
On Balance Volume, Expanded System OBVolExp The On Balance Volume, Expanded System calculates OBV and identifies the breakouts and field trends as described in Joseph Granville's 1963 book New Strategy of Daily Stock Market Timing for Maximum Profit. The breakout Array is filled with the following codes: 1 = up, -1 = down, 0 = no breakout on this bar. The fieldtrend Array is filled with the following codes: 1 = rising, -1 = falling, 0 = doubtfull.
Also see On Balance Volume and On Balance Volume, Moving.
On Balance Volume, Moving OBVolMv This version of the On Balance Volume (OBV) is a moving total, not a cumulative total. That is, only the values from the past n days are totaled, as opposed to totaling all days from the beginning of the data series.
See On Balance Volume for more information. Also see On Balance Volume, Expanded System.
Oscillator Oscillator The Oscillator function calculates the difference between two data series. It is a generic function that can take any price or indicator data as input. It is used in the calculation of many indicators.
Oscillator (Percent) OscillatorPct The OscillatorPct function calculates the difference between two data series as a percentage. It is a generic function that can take any price or indicator data as input. It is used in the calculation of many indicators.
Performance Indicator PerformancePct The Performance indicator displays the percentage difference between the price today and the price at the start of the data series. It is also known as a normalized price. It can be useful for comparing the performance of two securities or a security and an index.
Polarized Fractal Efficiency (PFE) PFE The Polarized Fractal Efficiency indicator uses fractal geometry to determine how efficiently the price is moving. When the PFE is zigzagging around zero, then the price is congested and not trending. When the PFE is smooth and above/below zero, then the price is in an up/down trend. The higher/lower the PFE value, the stronger the trend is.
The Polarized Fractal Efficiency indicator was developed by Hans Hannula and was introduced in the January, 1994 issue of Technical Analysis of Stocks & Commodities magazine.
Price Channels PriceChannels The Price Channels indicator creates a high band of the highest high over the last n periods and a low band of the lowest low over the last n periods. The bands are support and resistance levels.
See also Bollinger Bands, Envelope and Projection Bands.
Price Oscillator PriceOscillator The Price Oscillator shows the difference between two moving averages. It is basically a MACD, but the Price Oscillator can use any time periods. A buy signal is generate when the Price Oscillator rises above zero, and a sell signal when the it falls below zero.
See also Price Oscillator Percent, MACD.
Price Oscillator, Percent PriceOscillatorPct The Price Oscillator Percent shows the percentage difference between two moving averages. A buy signal is generate when the Price Oscillator Percent rises above zero, and a sell signal when the it falls below zero.
See also Price Oscillator.
Projection Bands ProjectionBands Projection Bands are calculated by finding the highest high and lowest low over the last n periods and plotting them parallel to a regression line of the high/low. The Projection Bands are support and resistance levels. When the price reaches the upper band, it signals a price top and probable reversal. Likewise, when the price reaches the bottom band, it signals a bottom. The price will never actually break above or below the bands (unlike Bollinger Bands).
See also Projection Bandwidth and Projection Oscillator. For other types of bands, see Bollinger Bands, Envelope and Price Channels.
Projection Bands were developed by Mel Widner, Ph.D and were originally introduced in his article in the July, 1995 issue of Technical Analysis of Stocks & Commodities magazine.
Projection Bandwidth ProjectionBandwidth Projection Bandwidth is based on the Projection Bands indicator. It is the ratio of the width of the bands to the midpoint. A low number indicates that the bands are narrowing, a high number means that the bands are widening. The band width is a measure of volatility. Narrow bands mean a narrow trading range and low volatility; wide bands, wide range, high volatility.
See also Projection Bands and Projection Oscillator.
Projection Oscillator ProjectionOscillator The Projection Oscillator is based on the Projection Bands indicator. The Oscillator calculates where the close lies within the band as a percentage. Therefore, an Oscillator value of 50 would mean that the close is in the middle of the band. A value of 100 would mean that the close is equal to the top band, and zero means that it is equal to the low band. The calculation is similar to a Stochastic which uses the raw highest high and lowest low value, whereas the Projection Oscillator adds the regression line component, making it more sensitive.
The Projection Oscillator can be interpreted several ways. Look for divergence with price to indicate a trend reversal. Extreme values (over 80 or under 20) indicate overbought/oversold levels. A moving average of the oscillator can be used as a trigger line. A buy/sell signal is generated when the Projection Oscillator to cross above/below the trigger line. The signal is stronger if it happens above 70 or below 30.
See also Projection Bands and Projection Bandwidth.
Positive Volume Index (PVI) PVI The Positive Volume Index (PVI) attempts to identify bull markets. The PVI shows what the uninformed investors are doing, while the Negative Volume Index shows what the smart investors are doing. It is based on the assumption smart investors dominate trading on light volume days and uninformed investors dominates trading on active days. The PVI changes on days when the volume is up and stays flat on down volume days.
Also see the Negative Volume Index.
The Positive and Negative Volume Index were developed by Norman Fosback and are described in his 1976 book, Stock Market Logic.
Percentage Volume Oscillator (PVO) PVO The Percentage Volume Oscillator (PVO) is the percentage difference between two moving averages of volume. The PVO has a maximum of 100, but no minimum value.
PVO crosses over zero when the fast Exponential Moving Average (EMA) is greater than the slow EMA indicating that volume is above average. The PVO crosses below zero when the fast EMA is less than the slow EMA indicating that volume is below average. The direction of the PVO curve indicates rising or falling volume levels. Look for strong volume (rising PVO) to confirm price trends. A moving average of the PVO can be used as a signal line to indicate longer term movements and to look for crossovers.
Price Volume Rank PVrank The Price Volume Rank was developed as a simple indicator that could be calculated even without a computer. The basic interpretation is to buy when the PV Rank is below 2.5 and sell when it is above 2.5.
The Price Volume Rank was developed by Anthony J. Macek and is described in his article in the June, 19994 issue of Technical Analysis of Stocks & Commodities magazine.
Price and Volume Trend (PVT) PVT The Price Volume Trend (PVT) is similar to the On Balance Volume (OBV). The OBV is a cumulative total of volume times +1/-1 based on whether the close is greater or less than the previous close. However, the PVT is a cumulative total of volume times the percentage change of the close from the previous close. So, it adds more of the volume to the total when the price makes greater moves. The PVT is interpreted in the same ways as the OBV.
See also On Balance Volume.
Qstick Qstick The Qstick indicator is an exponential moving average of the difference between the open and close. The "stick" in the name comes from candlestick charting. The body of a candlestick is from the open to the close. A white candlestick is an up and a black candlestick is a down day. Positive Qstick values indicate a majority of up days; negative values, a majority of down days.
To interpret the Qstick, look for a buy signal when it crosses above zero, and a sell signal when it crosses below zero. Also look for a buy signal when the Qstick is very low and turns up, and a sell signal when it is very high and turns down. A moving average of the Qstick can be used as a trigger line (look for the Qstick to cross the trigger). You can also look for divergence between the Qstick and price to indicate the end of a trend or as a non-confirmation of a price move.
The Qstick indicator was developed by Tushar S. Chande and Stanley Kroll and is described in their 1994 book The New Technical Trader.
Range Indicator RangeIndicator The Range indicator compares the intraday range (high - low) to the inter-day (close - previous close) range. When the intraday range is greater than the inter-day range, the Range Indicator will be a high value. This signals an end to the current trend. When the Range Indicator is at a low level, a new trend is about to start.
The Range Indicator was developed by Jack Weinberg and was introduced in his article in the June, 1995 issue of Technical Analysis of Stocks & Commodities magazine.
Rate of Change RateOfChange The Rate of Change function measures rate of change relative to previous periods. The function is used to determine how rapidly the data is changing. The factor is usually 100, and is used merely to make the numbers easier to interpret or graph. The function can be used to measure the Rate of Change of any data series, such as price or another indicator. When used with the price, it is referred to as the Price Rate Of Change, or PROC.
Ratio Ratio The Ratio function measures relationships between two data series. It is used in the calculation of many indicators and can be used with the output of other indicators.
Relative Momentum Index (RMI) RMI The Relative Momentum Index (RMI) is a variation on the Relative Strength Index (RSI). To determine up and down days, the RSI uses the close compared to the previous close. The RMI uses the close compared to the close n days ago. An RMI with a time period of 1 is equal to the RSI. The RMI ranges from 0 to 100. like the RSI, The RMI is interpreted as an overbought/oversold indicator when the value is over 70/below 30. You can also look for divergence with price. If the price is making new highs/lows, and the RMI is not, it indicates a reversal.
See also Relative Strength Index.
The Relative Momentum Index was developed by Roger Altman and was introduced in his article in the February, 1993 issue of Technical Analysis of Stocks & Commodities magazine.
Relative Strength Index (RSI) RSI The Relative Strength Index (RSI) calculates a ratio of the recent upward price movements to the absolute price movement. The RSI ranges from 0 to 100. The RSI is interpreted as an overbought/oversold indicator when the value is over 70/below 30. You can also look for divergence with price. If the price is making new highs/lows, and the RSI is not, it indicates a reversal.
The Relative Strength Index (RSI) was developed by J. Welles Wilder and was first introduced in his article in the June, 1978 issue of Commodities magazine, now known as Futures magazine, and is detailed in his book New Concepts In Technical Trading Systems.
r-squared RSquared The r-squared indicator calculates how well the price approximates a linear regression line. The indicator gets its name from the calculation, which is, the square of the correlation coefficient (referred to in mathematics by the Greek letter rho, or r). The range of the r-squared is from zero to one.
High r-squared values indicate a strong correlation, and an indication of a trend. An r-squared value above the critical value listed below indicates a positive correlation between the price and the linear regression line with 95% Confidence.
n r-squared
10 .40
120 .03
Relative Volatility Index (RVI) RVI The Relative Volatility Index (RVI) is based on the Relative Strength Index (RSI). Whereas the RSI uses the average price change, the RVI uses a 9 period standard deviation of the price.
The RVI indicator is a revision of the original RVI. The original version of the RVI is calculated using the closing price. The revised version is calculated by taking the average of the original RVI of the high and the original RVI of the low. See Relative Volatility Index - Original Calculation for the original version.
The RVI is a volatility indicator. It was developed as a compliment to and a confirmation of momentum based indicators. When used to confirm other signals, only buy when the RVI is over 50 and only sell when the RVI is under 50. If a signal is ignored, buy when the RVI is over 60 and sell when the RVI is under 40. Exit a long position if the RVI drops below 40 and exit a short position when the RVI rises above 60.
Also see the RVI Original.
The Relative Volatility Index was developed by Donald Dorsey and was originally introduced in his article in the June, 1993 issue of Technical Analysis of Stocks & Commodities magazine, and later revised in his article in the September, 1995 issue of the same magazine.
Relative Volatility Index (RVI) - Original Calculation RVIoriginal The Relative Volatility Index (RVI) is based on the Relative Strength Index (RSI). Whereas the RSI uses the average price change, the RVI uses a 9 period standard deviation of the price.
The original version of the RVI is calculated using the closing price. The revised version is calculated by taking the average of the original RVI of the high and the original RVI of the low. See Relative Volatility Index for the revised version .
Also see the RVI (modified).
Random Walk Index (RWI) RWI The Random Walk Index (RWI) is used to determine if an issue is trending or in a random trading range by comparing it to a straight line. The more random the price movement, the more the RWI fluctuates.
The short-term (2 to 7 periods) RWI is an overbought/oversold indicator, while the long-term (8 to 64 periods) RWI is a trend indicator. An issue is trending higher if the RWI of the highs is greater than 1, while a downtrend is indicated if the RWI of the lows is greater than 1. A buy signal is generated when the long-term RWI of the highs is greater than 1 and the short-term RWI of the lows rises above 1. A sell signal is generated when the long-term RWI of the lows is greater than 1 and the short-term RWI of the highs rises above 1.
The Random Walk Index was developed by Michael Poulos and is described in his article in the February, 1991 issue of Technical Analysis of Stocks & Commodities magazine.
Parabolic Stop and Reverse SAR The Parabolic SAR calculates a trailing stop. Simply exit when the price crosses the SAR. The SAR assumes that you are always in the market, and calculates the Stop And Reverse point when you would close a long position and open a short position or vice versa.
The Parabolic SAR was developed by J. Welles Wilder and is described in his 1978 book, New Concepts In Technical Trading Systems.
Simple Moving Average SimpleMA Moving Averages are used to smooth the data in an array to help eliminate noise and identify trends. The Simple Moving Average is literally the simplest form of a moving average. Each output value is the average of the previous n values. In a Simple Moving Average, each value in the time period carries equal weight, and values outside of the time period are not included in the average. This makes it less responsive to recent changes in the data, which can be useful for filtering out those changes.
See also Exponential MA, Least Squares MA, Triangular MA, Weighted MA, Welles MA, Variable MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
Stochastic Momentum Index (SMI) SMI The Stochastic Momentum Index (SMI) is based on the Stochastic Oscillator. The difference is that the Stochastic Oscillator calculates where the close is relative to the high/low range, while the SMI calculates where the close is relative to the midpoint of the high/low range. The values of the SMI range from +100 to -100. When the close is greater than the midpoint, the SMI is above zero, when the close is less than the midpoint, the SMI is below zero.
The SMI is interpreted the same way as the Stochastic Oscillator. Extreme high/low SMI values indicate overbought/oversold conditions. A buy signal is generated when the SMI rises above -50, or when it crosses above the signal line. A sell signal is generated when the SMI falls below +50, or when it crosses below the signal line. Also look for divergence with the price to signal the end of a trend or indicate a false trend.
The Stochastic Momentum Index was developed by William Blau and was introduced in his article in the January, 1993 issue of Technical Analysis of Stocks & Commodities magazine.
Moving Standard Deviation StdDevMv The Moving Standard Deviation function fills the output Array with the standard deviation of the last n values of the input Array. This function is used in the calculation of several indicators. It can take price or the output of any indicator as its input. Standard Deviation is often used as a measure of volatility.
Standard Error Bands StdErrBands Standard Error Bands are a type of envelope. They look similar to Bollinger Bands, however the calculation and interpretation is different. The middle band is a Least Squares Moving Average. The high band is the middle band plus a factor times the n period standard error. The low band is the middle band minus a factor times the n period standard error.
When the bands are close together, it means that there is a low standard error, which means that the price is in a trend. When the bands are farther apart, then the price is not trending. When the price is in a trend and the bands are close together, look for the bands to widen to signal the end of the trend.
Standard Error Bands were developed by Jon Anderson.
Moving Standard Error StdErrMv The Moving Standard Error function fills the output Array with the standard error of the last n values of the input Array. This function is used in the calculation of several indicators. It can take price or the output of any indicator as its input.
General Stochastic Calculation Stochastic This is a general form of the Lane Stochastic Oscillator calculation that works on any Array, instead of Bars. This is very usefull for building composite indicators. The general Stochastic theory still applies, that is, that as prices decrease, they tend to accumulate near the extreme lows, and when rising, they tend to accumulate near the extreme highs.
Stochastic Oscillator, Slow StochasticOscillatorSlow The Stochastic Oscillator measures where the close is in relation to the recent trading range. The values range from zero to 100. D values over 75 indicate an overbought condition; values under 25 indicate an oversold condition. When the Fast D crosses above the Slow D, it is a buy signal; when it crosses below, it is a sell signal. The Raw K is generally considered too erratic to use for crossover signals.
Also see the General Stochastic Calculation.
The Stochastic Indicator was developed by George C. Lane.
Fast Stochastic Refers to both K and D where K is un-smoothed
Slow Stochastic Refers to both K and D where K is smoothed
Raw K Un-smoothed K
Fast K Un-smoothed K
Slow K Smoothed K
Fast D Moving average of an un-smoothed K
Slow D Moving average of a smoothed K, in effect: a double smoothed K.
D Always refers to a smoothed K (whether or not the K itself is smoothed) .
Swing Index SwingIndex The Swing Index attempts to determine the real price. The numbers range from -100 to +100. It is difficult to interpret in its raw form, and is usually summed to form the Accumulation Swing Index.
It is important to use the correct limit move for the commodity you are analyzing (e.g. $3.00 for T-Bonds, $0.04 for Heating Oil, etc). For a stock, limit move should be a large number, such as $10,000.
The Swing Index was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
T3 T3 The T3 is a type of moving average, or smoothing function. It is based on the DEMA. The T3 takes the DEMA calculation and adds a vfactor which is between zero and 1. The resultant function is called the GD, or Generalized DEMA. A GD with vfactorof 1 is the same as the DEMA. A GD with a vfactor of zero is the same as an Exponential Moving Average. The T3 typically uses a vfactor of 0.7.
The T3 triple-smoothes the data series by calling the GD three times. You can pass any value for tcount to the T3 function. For instance, a tcountof 4 would be quadruple-smoothed, in effect a T4. A tcount of 1 would be a single-smoothed GD.
Any data series can be smoothed with the T3, including price or the output of another indicator.
See also Exponential Moving Average, DEMA and TEMA,
The T3 was developed by Tim Tillson and was described in his January, 1998 article in Technical Analysis of Stocks & Commodities magazine.
TEMA TEMA The TEMA is a smoothing indicator with less lag than a straight exponential moving average. TEMA is an acronym for Triple Exponential Moving Average, but the calculation is more complex than that.
The TEMA was developed by Patrick Mulloy and is described in his article in the January, 1994 issue of Technical Analysis of Stocks & Commodities magazine.
See also Exponential Moving Average, DEMA and T3.
True Range (TR) TR The True Range function is used in the calculation of many indicators, most notably, the Welles Wilder DX. It is a base calculation that is used to determine the normal trading range of a stock or commodity.
Triangular Moving Average TriangularMA The Triangular Moving Average is a form of Weighted Moving Average wherein the weights are assigned in a triangular pattern. For example, the weights for a 7 period Triangular Moving Average would be 1, 2, 3, 4, 3, 2, 1. This gives more weight to the middle of the time series and less weight to the oldest and newest data.
The Triangular Moving Average is mathematically equivalent to a Simple Moving Average of a Simple Moving Average.
See also Exponential MA, Least Squares MA, Simple MA, Weighted MA, Welles MA, Variable MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
TRIX TRIX The TRIX indicator calculates the rate of change of a triple exponential moving average. The values oscillate around zero. Buy/sell signals are generated when the TRIX crosses above/below zero. A (typically) 9 period exponential moving average of the TRIX can be used as a signal line. A buy/sell signals are generated when the TRIX crosses above/below the signal line and is also above/below zero.
The TRIX was developed by Jack K. Hutson, publisher of Technical Analysis of Stocks & Commodities magazine, and was introduced in Volume 1, Number 5 of that magazine.
Trend Score TrendScore The Trend Score is a simple indicator that attempts to show when price is trending by looking at up and down days. The trend is equal to one when the price is greater than or equal to the previous price, and as a negative one when the price is less than the previous price. The Trend Score is the moving summation of those ones and negative ones over the past n periods.
True Strength Index (TSI) TSI The True Strength Index (TSI) is a variation of the Relative Strength Index (RSI). The TSI uses a double smoothed exponential moving average of price momentum to eliminate choppy price changes and spot trend changes. This indicator has a little or no time lag.
The True Strength Index was developed by William Blau and is described in his 1995 book Momentum, Direction, and Divergence.
Typical Price TypicalPrices The Typical Price is the average of the high + low + close of a bar. It is used in the calculation of several indicators. It can be used to smooth an indicator that normally takes just the closing price as input.
See also Average Price, Median Price and Weighted Close.
Ultimate Oscillator UltimateOsc The Ultimate Oscillator is the weighted sum of three oscillators of different time periods. The typical time periods are 7, 14 and 28. The values of the Ultimate Oscillator range from zero to 100. Values over 70 indicate overbought conditions, and values under 30 indicate oversold conditions. Also look for agreement/divergence with the price to confirm a trend or signal the end of a trend.
The Ultimate Oscillator was developed by Larry Williams and was introduced in his article in the April, 1985 issue of Technical Analysis of Stocks & Commodities magazine.
Up Average UpAverage The Up Average is a Welles Wilder style moving average of the increases between consecutive prices. Used in the calculation of the RSI.
Variable Moving Average VariableMA A Variable Moving Average is an exponential moving average that automatically adjusts the smoothing weight based on the volatility of the data series. The more volatile the data is, the more weight is given to the more recent values. The Variable Moving Average solves a problem with most moving averages. In times of low volatility, such as when the price is trending, the moving average time period should be shorter to be sensitive to the inevitable break in the trend. Whereas, in more volatile non-trending times, the moving average time period should be longer to filter out the choppiness.
Almost any measure of volatility can be used in calculating the Variable Moving Average, however, most implementations use a 9 period Chande Momentum Oscillator (CMO).
The Variable Moving Average is also known as the VIDYA Indicator.
The Variable Moving Average was developed by Tushar S. Chande and first presented in his March, 1992 article in Technical Analysis of Stocks & Commodities magazine, in which a standard deviation was used as the Volatility Index. In his October, 1995 article in the same magazine, Chande modified the VIDYA to use his own Chande Momentum Oscillator (CMO) as the Volatility Index.
See also Exponential MA, Least Squares MA, Simple MA, Triangular MA, Weighted MA, Welles MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
VIDYA VIDYA VIDYA is an acronym of Variable Index DYnamic Average. The VIDYA is an exponential moving average that automatically adjusts the smoothing weight based on the volatility of the data series. The more volatile the data is, the more weight is given to the more recent values. The VIDYA solves a problem with most moving averages. In times of low volatility, such as when the price is trending, the moving average time period should be shorter to be sensitive to the inevitable break in the trend. Whereas, in more volatile non-trending times, the moving average time period should be longer to filter out the choppiness.
The VIDYA is also known as the Variable Moving Average.
The VIDYA was developed by Tushar S. Chande and first presented in his March, 1992 article in Technical Analysis of Stocks & Commodities magazine, in which a standard deviation was used as the Volatility Index. In his October, 1995 article in the same magazine, Chande modified the VIDYA to use his own Chande Momentum Oscillator (CMO) as the Volatility Index.
Vertical Horizontal Filter (VHF) VHF The Vertical Horizontal Filter (VHF) determines whether prices are trending. When the VHF is rising, it indicates the formation of a trend. Higher VHF values indicate a stronger trend. When the VHF is falling, it indicates the trend is ending and price is becoming congested. Very low VHF values indicate a trend may follow.
The Vertical Horizontal Filter was developed by Adam White.
Volume Adjusted Moving Average VolAdjustedMA The Volume Weighted Moving Average is a weighted moving average that uses the volume as the weighting factor, so that higher volume days have more weight. It is a non-cumulative moving average, in that only data within the time period is used in the calculation.
See also Exponential MA, Least Squares MA, Simple MA, Triangular MA, Weighted MA, Welles MA, Variable MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
Weighted Close WeightedCloses The Weighted Close is the average of the high, low and close of a bar, but the close is weighted, actually counted twice. It is used in the calculation of several indicators. It can be used to smooth an indicator that normally takes just the closing price as input.
See also Average Price, Median Price and Typical Price.
Weighted Moving Average WeightedMA The Weighted Moving Average calculates a weight for each value in the series. The more recent values are assigned greater weights. The Weighted Moving Average is similar to a Simple Moving average in that it is not cumulative, that is, it only includes values in the time period (unlike an Exponential Moving Average). The Weighted Moving Average is similar to an Exponential Moving Average in that more recent data has a greater contribution to the average.
See also Exponential MA, Least Squares MA, Simple MA, Triangular MA, Welles MA, Variable MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
Welles Wilder Moving Average WellesMA The Welles Wilder method of calculating moving averages is very similar to a Simple Moving Average. Both calculations provide similar results. Welles designed his formula to be easily computed by hand or with a simple calculator. For the sake of consistency Welles Moving Averages are used in all Welles indicator formulas (ADX, ADXR and ATR).
See also Exponential MA, Least Squares MA, Simple MA, Triangular MA, Weighted MA, Variable MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
Welles Wilder Summation WellesSum The Welles Sum is the Welles Wilder method of creating the moving sum of a data series. Each value is the sum of the last n periods. Welles designed his formula to be easily computed by hand or with a simple calculator. The numbers will vary slightly from a simple (arithmetic) sum. For consistency with the original formulas, the Welles Sum is used in the calculation of Welles Wilder's indicators (the +/-DI and by extension the DX, ADX, ADXR).
See also Moving Sum.
Williams Accumulation/Distribution WilliamsAD Williams Accumulation/Distribution indicator measures market pressure. Look for divergence with price. When the price makes a new low, but the AD does not, look for the price to turn up, and vice versa.
The Williams Accumulation/Distribution Indicator is also know as the Williams AD. It was developed by Larry Williams.
Williams %R WilliamsR Williams %R, or just %R, is a technical analysis oscillator showing the current closing price in relation to the high and low of the past N days (for a given N).
It was developed by a publisher and promoter of trading materials, Larry Williams. Its purpose is to tell whether a stock or commodity market is trading near the high or the low, or somewhere in between, of its recent trading range.
%R = ((Highest high value (High, Number of periods chosen) - Close)/(Highest high value (High, number of periods chosen) - Lowest low value (Low, Number of periods chosen))) * (-100)
The oscillator is on a negative scale, from -100 (lowest) up to 0 (highest), considered unusual since it is the obverse of the more common 0 to 100 scale found in many Technical Analysis oscillators. Although sometimes altered (by simply adding 100), this scale needn't cause any confusion. A value of -100 is the close today at the lowest low of the past N days, and 0 is a close today at the highest high of the past N days.
Zero Lag Exponential Moving Average ZeroLagExpMA The Zero-Lag Exponential Moving Average is a variation on the Exponential Moving Average. The Zero-Lag keeps the benefit of the heavier weighting of recent values, but attempts to remove lag by subtracting older data to minimize the cumulative effect.
See also Exponential MA, Least Squares MA, Simple MA, Triangular MA, Weighted MA, Welles MA, Variable MA, Volume Adjusted MA, DEMA, TEMA and T3.
Zig Zag ZigZag The Zig Zag filters out small movements in price to highlight trends. It looks for price moves greater than the threshold level and plots straight lines between those points. The Zig Zag is more of a visual tool than an indicator. It is non-predictive, in fact, the formula looks forward in time to find the zig zag points. The purpose of the Zig Zag is to make chart patterns clearer.
Ticker Tocker Trend Channel TTTC The RTTT Trend Channel is a useful tool for traders who use trend-following trading techniques. This indicator attempts tell you if you are in either an up or down trend, and when the trend is over. The RTTT Trend Channel is particularly useful as a trailing stop when following a trend.
This indicator is a visual representation of a support/resistance line (Plus Trend) and a Reversal Line (Minus Trend). When the Plus Trend line is above the Minus Trend line, the instrument is trending up and the Plus Trend line represents the resistance price. When the Minus Trend line is above the Plus Trend line, the instrument is trending down and the Plus Trend line represents the support price. When the closing price of a bar crosses the Minus Trend line (a cross down when in an up trend or a cross up when in a down trend), the Plus Trend line and Minus Trend line reverse positions. When that happens, the previous trend has ended and a new trend has begun.
Strength is a 5-period Welles Moving Average of the close
The Trend output is a signal output that tells you when the trend has changed. Its value is +1 when the trend changes from down to up, -1 when the trend changed from up to down, and 0 when there is no trend change.
The Direction output is an output that tells you the direction of the trend. Its value is +1 when the Plus Trend is greater than the Minus Trend and -1 when the Minus Trend is greater than the Plus Trend.
KnowVera Score KnowVera Score KnowVera Score is a proprietary algorithm to give traders a clear indication where the market forces are leaning towards by providing bullish and bearish scores. A score ranges from 0 to 14 on increasing strength.
This indicator is a visual representation of the strength of market participants at a given time.
The Trend Difference output is provided as a trailing stop when following a trend.
The Trend Factor term is a multiplier to a plus and minus trend difference to calculate the range of prices which will be used as additional element for calculating a score. The formula is (trendFactor ÌÑ (Plus Trend -Minus Trend))+ Minus Trend.
The WellesMA Factor term is a multiplier to a 10-period highest-high and lowest-low difference to calculate the range of prices which will be used as additional element for calculating a score. The formula is (WellesMA_10 +/- (0.15 ÌÑ ((HH_10 - LL_10 )).
ConnorRSI Connor RSI ConnorsRSI is a composite indicator consisting of three components. Two of the three components
utilize the Relative Strength Index (RSI) calculations developed by Welles Wilder in the 1970s, and the
third component ranks the most recent price change on a scale of 0 to 100. Taken together, these three
factors form a momentum oscillator, i.e. an indicator that fluctuates between 0 and 100 to indicate the
level to which a security is overbought (high values) or oversold (low values).
ConnorsRSI(3,2,100) = [ RSI(Close,3) + RSI(Streak,2) + PercentRank(100) ] / 3
KnowVera Score V2 KnowVera Score V2 KnowVera Score is a proprietary algorithm to give traders a clear indication where the market forces are leaning towards by providing bullish and bearish scores. A score ranges from 0 to 14 on increasing strength.
The Trend Factor term is a multiplier to a plus and minus trend difference to calculate the range of prices which will be used as additional element for calculating a score. The formula is (trendFactor •À_ (Plus Trend -Minus Trend))+ Minus Trend.
The WellesMA Factor term is a multiplier to a 10-period highest-high and lowest-low difference to calculate the range of prices which will be used as additional element for calculating a score. The formula is (WellesMA_10 +/- (0.15 •À_ ((HH_10 - LL_10 )).
Volatility Wave VolatilityWave Measures the volatility of instrument. The tighter the range, the least volatility
A compressed range indicates a consolidation period. When the consolidation period breaks, the move represents a trend in either direction
Welles Directional Movement System WellesDM The DMI series function returns the directional movement index (DMI) for a security.
DMI attempts to measure the trending quality of a security independent of direction. The greater the DMI value, the stronger a security is trending. DMI does not indicate direction.
Wilder, Welles, Jr. New Concepts in Technical Trading Systems. Trend Research. McLeansville, NC.
Keltner Channel Keltner Chester W. Keltner introduced and developed the Keltner Channels in his book "How To Make Money in Commodities". Like Bollinger Bands, Keltner Channels are simply moving-average bands. (See The Basics of Bollinger Bands.) Moving-average bands and channels are the same thing: a middle line and two outer lines.
Keltner Channels represent the average of the high, low and the closing price of an issue. On each side of the middle line are bands that are formed from the daily high minus the daily low over a period of 10 days. Technicians believe the theory that the price of an issue is most likely to trade within the boundaries of bands or envelopes. The trader is to sell the issue when the closing price exceeds the upper band and to buy the issue when the closing price falls outside the lower band. This theory is probably best explained in Perry Kaufman's book entitled "The New Commodity Trading System and Methods".
Stochastic Oscillator, Slow (Modified) Stochastic Slow The Stochastic Oscillator measures where the close is in relation to the recent trading range. The values range from zero to 100. D values over 75 indicate an overbought condition; values under 25 indicate an oversold condition. When the Fast D crosses above the Slow D, it is a buy signal; when it crosses below, it is a sell signal. The Raw K is generally considered too erratic to use for crossover signals.
3 Plot Welles Wilder Moving Average WellesMA3 The Welles Wilder method of calculating moving averages is very similar to a Simple Moving Average. Both calculations provide similar results. Welles designed his formula to be easily computed by hand or with a simple calculator. For the sake of consistency Welles' Moving Averages are used in all Welles indicator formulas (ADX, ADXR and ATR).
3 Plot Simple MA SimpleMA3 Moving Averages are used to smooth the data in an array to help eliminate noise and identify trends. The Simple Moving Average is literally the simplest form of a moving average. Each output value is the average of the previous n values. In a Simple Moving Average, each value in the time period carries equal weight, and values outside of the time period are not included in the average. This makes it less responsive to recent changes in the data, which can be useful for filtering out those changes.
Lookback Period Lookback Period This allows a check of the current bar's value to the previous bar's nth value. Example: Value = Close - Close[1];
Abandoned Baby Bottom Abandoned Baby Bottom This formation consists of three candlesticks. The middle candlestick is a doji which gaps down from both the first and third candlestick. It is a signal that a bottom has formed and a trend reversal may be at hand.
Abandoned Baby Top Abandoned Baby Top This formation consists of three candlesticks. The middle candlestick is a doji which gaps up from both the first and third candlestick. It is a signal that a top has formed and a trend reversal may be at hand.
Advance Block Advance Block Advance Block is a three candlestick bearish reversal pattern that occurs during an uptrend. The pattern consists of three white candlesticks that close progressively higher. The first candle is long bodied with a short wick. The second and third candles open within the body of the prior candle. They have increasing smaller bodies and long shadows relative to the first candle. This reflects the weakening uptrend.
Belt Hold Line Bear Belt Hold Line Bear This is a long black candlestick that opens at its high. In an uptrend this would be considered a bearish indicator. This formation is also called a black opening shaven head.
Belt Hold Line Bull Belt Hold Line Bull This is a long white candlestick that opens at its low. In an downtrend this would be considered a bullish indicator.
Counter Attack Bear Counter Attack Bear A bearish counterattack line pattern is found within an upward trend, the first candlestick is a long white one followed by a black candlestick that gapped higher on the open, but closes at approximately the same level as the close of the white candlestick.
Counter Attack Bull Counter Attack Bull A bullish counterattack line pattern is found within a downward trend, the first candlestick is a long black one followed by a white candlestick that gapped lower on the open, but closes at approximately the same level as the open of the black candlestick.
Dark Cloud Cover Dark Cloud Cover The dark cloud cover pattern occurs in an uptrend and is comprised of two candlesticks. The first candlestick in the pattern is a long white candle. The next candlestick opens higher than the previous candle•À_s high, but then sells off to close below the midpoint of the first candlestick, but not below the open of that candle.
Engulfing Line Bear Engulfing Line Bear This formation consists of two candlesticks. The first candlestick is white the second is black. The second candlestick's open is higher than the first but then closes below the first's open. The real body of the second candlestick engulfs that of the first. This indicates the bulls to force the market higher but failed.
Engulfing Line Bull Engulfing Line Bull This formation consists of two candlesticks. The first candlestick is black the second is white. The second candlestick's open is lower than the first but then closes higher than the first's open. The real body of the second candlestick engulfs that of the first. This indicates the bears tried to forced the market lower but failed.
Evening Doji Star Evening Doji Star The Evening Doji Star formation consists of a sequence of three candles. The first one is white and has a long body; the second candle is a Doji, whereas the third one is a long black candle. The third candle is the confirmation of the trend reversal and its real body should not touch the real body of the second candle, whereas it should close at least halfway into the real body of the first candle
Evening Star Evening Star The evening star formation consists of a sequence of three candles. The first one is white and has a long body, the second candle is of smaller size and short body (its color is of no importance), whereas the third one is a long black candle. The third candle is the confirmation of the trend reversal and its real body should not touch the real body of the second candle, whereas it should close at least halfway into the real body of the first candle.
Falling3 Method Falling3 Method The Falling Three Method pattern begins with a long black candle followed by a series of upward reaction candles. These candles all form within the range of the original candle, but have smaller bodies. The smaller candles are white, since the large trend candle is black. The fifth and final candle is black, but it closes at a new low and opens lower than the close of the previous day.
Gravestone Doji Gravestone Doji This candlestick is a Doji in which the open and the close are at the low. This candlestick could signal a possible reversal at market tops.
Hammer Hammer A Hammer candle is characterized by a small real body at the upper end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. This hammer matches the black candles. The Hanging Man is the same pattern but matches the White candles.
Hanging Man Hanging Man A Hanging Man is a hammer that occurs after an uptrend and is a bearish signal. A Hammer candle is characterized by a small real body at the upper end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. This Hanging Man matches the white candles. The Hammer is the same pattern but matches the black candles.
Harami Black Harami Black The Harami Black candlestick pattern is characterized by a large black candlestick followed by a smaller white candlestick whose body is located within the range of the larger body.
Harami Cross Black Harami Cross Black This formation is similar to the Harami Black except that the second candlestick is a Doji.
Harami Cross White Harami Cross White This formation is similar to the Harami White except that the second candlestick is a Doji.
Harami White Harami White The Harami White candlestick pattern is characterized by a large white candlestick followed by a smaller black candlestick whose body is located within the range of the larger body.
High Wave High Wave The High Wave candlestick pattern is characterized where the body of the candlestick is very narrow and has long shadows on both sides. This type of candlestick shows that the market is at an impasse between bullish and bearish.
Inverted Hammer Inverted Hammer An Inverted Hammer candle is characterized by a small real body at the lower end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. The Inverted Hammer is the same as a shooting star, only the inverted hammer appears at the end of a downtrend, whereas the shooting star appears at the end of an uptrend.
Long Legged Doji Long Legged Doji This candlestick is a Doji with a long upper and lower shadow. It can be a sign of a market reversal.
Mat Hold Pattern Mat Hold Pattern The Mat Hold Pattern is characterized as a 5 stick continuation pattern, where a long white candlestick comes after a candlestick formation consisting of the four previous candles as follows:
•À_ The first one is also a long white candlestick
•À_ The second one is a small black that forms a gap but in the same direction of the market
•À_ The next two candlesticks continue representing the pullback or rather the correction and they both stay inside the range of the first candle.
Morning Doji Star Morning Doji Star The Morning Doji Star pattern signals a bullish reversal after a down-trend. The first candlestick has a long black body. The second candlestick gaps down from the first (the body•À_s display a gap, but the shadows may still overlap) and close as a Doji. The next candlestick has a long white body which closes in the top half of the body of the first candlestick.
Morning Star Morning Star The Morning Star pattern signals a bullish reversal after a down-trend. The first candlestick has a long black body. The second candlestick gaps down from the first (the bodies display a gap, but the shadows may still overlap) and is more bullish if white but is not a requirement. The next candlestick has a long white body which closes in the top half of the body of the first candlestick.
Piercing Line Piercing Line The Piercing Line Pattern is a bullish pattern and the opposite of the Dark Cloud Cover pattern. This formation appears during a downtrend, with the first candle long bodied and black. The following trading day prices open at a new low, but trade higher and close at a level where the candle reaches above the midpoint of the prior day•À_s body.
Rising3 Method Rising3 Method The Rising Three Method pattern begins with a long white candle followed by a series of downward reaction candles. These candles all form within the range of the original candle, but have smaller bodies. The smaller candles are black, since the large trend candle is white. The fifth and final candle is white, but it closes at a new high and opens higher than the close of the previous day.
Separating Line Bear Separating Line Bear This formation consists of two candlesticks. A white candlestick is followed by a black candlestick. Both candlesticks have the same open. When this formation appears in a downtrend it is a signal that the downtrend should continue.
Separating Line Bull Separating Line Bull This formation consists of two candlesticks. A black candlestick is followed by a white candlestick. Both candlesticks have the same open. When this formation appears in an uptrend it is a signal that the uptrend should continue.
Shooting Star Shooting Star A Shooting Star candle is characterized by a small real body at the lower end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. The Shooting Star is the same as an Inverted Hammer, only the Shooting Star appears at the end of an uptrend, whereas the Inverted Hammer appears at the end of a downtrend.
Side By Side White Gap Dn Side By Side White Gap Dn The Side By Side White Gap Down consists of three individual candlesticks and is a bearish pattern. It consists of a black candlestick, followed by a white candlestick that opens below the close of the first candlestick, followed by another white candlestick that opens below the close of the second candlestick. The gap down between the first and second candlesticks is not closed by either the second or third candlesticks.
Side By Side White Gap Up Side By Side White Gap Up The Side By Side White Gap Up consists of three candlesticks and is a bullish pattern. It consists of a white candlestick, followed by a white candlestick that opens above the open of the first candlestick, followed by third white candlestick that opens below the close of the second candlestick. The gap up between the first and second candlesticks is not closed by either the second or third candlesticks.
Tasuki Downside Gap Tasuki Downside Gap This formation consists of three candlesticks. The first two are black, and the third is white. The second and third are small. The second candle gaps down from the first one and does not close the gap. The third candle opens within the body of the second, closes within the gap between the first two candles, and does not close that gap during its formation. This suggests a continuation of the downward trend because the gap down on the second day is not filled on the third day.
Tasuki Upside Gap Tasuki Upside Gap This formation consists of three candlesticks. The first two are white, and the third is black. The second and third are small. The second candle gaps up from the first one and does not close the gap. The third candle opens within the body of the second, closes within the gap between the first two candles, and does not close that gap during its formation. This suggests a continuation of the upward trend because the gap up on the second day is not filled on the third day.
Three Gaps Down Three Gaps Down This formation consists of three candlesticks, each gaps progressively lower. When formation appears in an downtrend it is a sign that selling power may be diminishing.
Three Gaps Up Three Gaps Up This formation consists of three candlesticks, each gaps progressively higher. When formation appears in an uptrend it is a sign that buying power may be diminishing.
Three White Soldiers Three White Soldiers This formation consists of three white candlesticks. Each of the candlesticks opens and closes progressively higher. Also, the close of each is near the high. This formation signals a powerful upward price pattern.
Upside Gap2 Crows Upside Gap2 Crows This formation consists of three candlesticks. The first is long and white. The second is black, gaps up above the first, and its low is higher than the first•À_s close. The third is black, opens higher than the second, closes lower than the second, and its low is higher than the first•À_s close. The gap that was created between the first and second days is being tested on the third day. The two consecutive lower closes shows that the bears are gaining strength.
Stochastic Oscillator, Fast StochasticOscillatorFast The Stochastic Oscillator measures where the close is in relation to the recent trading range. The values range from zero to 100. D values over 75 indicate an overbought condition; values under 25 indicate an oversold condition. When the Fast D crosses above the Slow D, it is a buy signal; when it crosses below, it is a sell signal. The Raw K is generally considered too erratic to use for crossover signals.
Welles Wilder Volatility WellesVol The Volatility System was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.
DragonFly Doji DragonflyDoji A Dragonfly Doji is characterized by a doji at the upper end of the trading range on the bar. The lower shadow is at least twice as long as the real body with no (or almost no) upper shadow.
In Neck Line In Neck Line This candlestick formation consists of two candles. The first is long and black the second is a short white real body. The close of the white candlestick is above the low of the black one. This pattern appears in downtrends. The white candlestick represents a brief pause where the bulls have stopped the downward trend but once the white candlestick low is broken the downtrend should resume.
In Neck Line Bear In Neck Line Bear The In Neck Line Bear is a two candlestick continuation pattern that occurs during a downtrend. The first candlestick is long bodied and Black. The second candlestick gaps lower but ends up closing above its open, approximately around the level of the bottom of the prior candlestick•À_s body.
In Neck Line Bull In Neck Line Bull The In Neck Line Bull is a two candlestick continuation pattern that occurs during an uptrend. The first candlestick is long bodied and white. The second candlestick gaps higher but ends up closing below its open, approximately around the level of the top of the prior candlestick•À_s body.
Stalled Bear Pattern Stalled Bear Pattern This formation consists of three black candlesticks. The first two are long, and the third is small. Each candle progressively makes a lower low. The first two candles close near their lows. The second candle opens within the body of the first candle. The last candle opens near the close of the second candle. When this pattern is spotted during a downtrend, it usually signals a stalling out of the downtrend.
Stalled Bull Pattern Stalled Bull Pattern This formation consists of three white candlesticks. The first two are long, and the third is small. Each candle progressively makes a higher high. The first two candles close near their highs. The second candle opens within the body of the first candle. The last candle opens near the close of the second candle. When this pattern is spotted during an uptrend, it usually signals a stalling out of the uptrend.
Three Black Crows Three Black Crows This formation consists of three black candlesticks. Each of the candlesticks opens and closes progressively lower. Also, the close of each is near the low. This formation signals a powerful downward price pattern.
Thrusting Bear Line Thrusting Bear Line This formation consists of two candlesticks. The first one is black and the second is white. The white candlestick closes in the black candlestick's body. However, the white candlestick closes below the midpoint of the black candlestick. This shows that the bulls are weak because the second day is unable to close above the midpoint of the first day•À_s body.
Thrusting Bull Line Thrusting Bull Line This formation consists of two candlesticks. The first one is white and the second is black. The black candlestick closes in the white candlestick's body. However, the black candlestick closes above the midpoint of the white candlestick. This shows that the bears are weak because the second day is unable to close below the midpoint of the first day•À_s body.
Breakaway Bear Breakaway Bear
Breakaway Bull Breakaway Bull This formation consists of a series of five candlesticks. The first day is a large black candle. The second day is a gap down. The following two days are in the same direction (down), but with smaller bodies than the first day. The fifth day is a large white candle that closes inside the first or second day's body. It is essentially a Three Stars in the South formation with a reversal at the end. This formation indicates that a downward trend is slowing and might reverse.
Deliberation Bull Deliberation Bull This formation consists of three black candlesticks. The first two have large bodies and small bottom shadows. The third one has a small body and gaps down from the previous candlestick. It indicates that an downward trend may be ending.
Deliberation Bear Deliberation Bear This formation consists of three white candlesticks. The first two have large bodies and small top shadows. The third one has a small body and gaps up from the previous candlestick. It indicates that an upward trend may be ending.
Dragonfly Doji Bull Dragonfly Doji Bull The Bullish Dragonfly Doji formation consists of a Doji candlestick (open and close are approximately equal) with a long bottom shadow and no top shadow. The formation occurs in a downtrend, which can be defined as two or more black candlesticks. It indicates that a sharp reversal has occurred.
Dragonfly Doji Bear Dragonfly Doji Bear The Bearish Dragonfly Doji formation consists of a Doji candlestick (open and close are approximately equal) with a long bottom shadow and no top shadow. The formation occurs in an uptrend, which can be defined as two or more white candlesticks. It is similar to the Hanging man formation, but more bearish. It indicates that a sharp reversal has occurred.
Ladder Bottom Ladder Bottom The Ladder Bottom formation consists of five candlesticks. The first three are long and black. The fourth is black, but not necessarily long, with a long top shadow and a high above the previous close. The last candlestick is large and white with a small top shadow and a gap up from the previous close. The Ladder Bottom indicates the reversal of a downward trend.
Meeting Lines Bear Meeting Lines Bear The bearish Meeting Lines formation consists of an uptrend terminating in a long white candlestick followed by a long black candlestick whose close is approximately equal to the previous close. Mathematically, that also means that there was a large gap up on the open. The Meeting Lines formation is a reversal pattern.
Tweezer Tops Tweezer Tops The Tweezer Tops formation consists of two consecutive candlesticks with equal highs. The formation takes on added significance if it occurs within the context of another formation. A web search will turn up many different definitions for Tweezer Tops and Bottoms. In some definitions the color, size or shadows of the candlesticks is said to matter. The definition above is the one given by Steve Nison in his definitive "Japanese Candlestick Charting Techniques."
Three Line Strike Bear Three Line Strike Bear The bearish Three Line Strike formation consists of three long black candlesticks followed by a white candlestick which opens lower and closes above the open of the first black candlestick. The fourth candlestick resets the price to the beginning of the formation, but this is not a reversal formation. It is considered an indicator of a bearish continuation, especially if followed by a black candlestick gapping down.
Meeting Lines Bull Meeting Lines Bull The bullish Meeting Lines formation consists of a down trend terminating in a long black candlestick followed by a long white candlestick whose close is approximately equal to the previous close. Mathematically, that also means that there was a large gap down on the open. The Meeting Lines formation is a reversal pattern.
Three Line Strike Bull Three Line Strike Bull The bullish Three Line Strike formation consists of three long white candlesticks followed by a black candlestick which opens higher and closes below the open of the first black candlestick. The fourth candlestick resets the price to the beginning of the formation, but this is not a reversal formation. It is considered an indicator of a bullish continuation, especially if followed by a white candlestick gapping down.
Three Outside Down Three Outside Down The Three Outside Down formation a white candlestick in an uptrend followed by a black candlestick that engulfs it (opens higher than the high and closes lower than the low), which is then followed by a black candlestick with a lower close than the previous close. It is a bearish reversal pattern. The Three Outside Down formation is a bearish Engulfing formation followed by a confirming candlestick, so it is sometimes called the Confirmed Bearish Engulfing formation.
Three Outside Up Three Outside Up The Three Outside Up formation a black candlestick in a down trend followed by a white candlestick that engulfs it (opens lower than the low and closes higher than the high), which is then followed by a white candlestick with a lower close than the previous close. It is a bullish reversal pattern. The Three Outside Down formation is a bullish Engulfing formation followed by a confirming candlestick, so it is sometimes called the Confirmed Bullish Engulfing formation.
Three Stars In The South Three Stars In The South The Three Stars in the South formation consists of a three black candlesticks. The first is large with a short top shadow and long bottom shadow. The second is engulfed by the first. The third is engulfed by the second, and has no shadows (a Black Marubozu). The Three Stars in the South formation is a bullish reversal signal when it appears at the end of a down trend.
Tri Star Bull Tri Star Bull The Tri-Star formation consists of a three consecutive Doji candlesticks. The second should close below the first and third. The formation signals the end of a down trend.
Tri Star Bear Tri Star Bear The Tri-Star formation consists of a three consecutive Doji candlesticks. The second should close above the first and third. The formation signals the end of an uptrend.
Tweezer Bottoms Tweezer Bottoms The Tweezer Bottoms formation consists of two consecutive candlesticks with equal lows. The formation takes on added significance if it occurs within the context of another formation. A web search will turn up many different definitions for Tweezer Tops and Bottoms. In some definitions the color, size or shadows of the candlesticks is said to matter. The definition above is the one given by Steve Nison in his definitive "Japanese Candlestick Charting Techniques."
On Neck On Neck The On Neck formation is a long black candlestick followed by a white candlestick which opens below the previous low and closes approximately at the previous low. It is a bearish formation which occurs in a down trend.
Relative Value JARVA The Relative Value indicator, or JARVA, considers the price action over the specified time period and produces a base line and a relative line on a scale loosely associated with the price of the asset. The significant points occur when the relative line crosses the base line. These crosses predict a change in direction and can be used as buy or sell signals.
Prevailing Sentiment JAPSEN The Prevailing Sentiment indicator, or JAPSEN, considers the price action over the specified time period and produces a value that moves above and below 100. A value of 100 is considered neutral. Values greater than 100 show optimistic sentiment and values below 100 are pessimistic sentiment. The greater the numerical extreme, the more intense and unsustainable the emotion behind it will be. Look for reversals in price when levels approach values of 120 or 80. Use your own testing to determine the best levels for your strategy.
Variable Lookback Period Variable Lookback This is an enhanced version of the Lookback Period function. Unlike the Lookback Period function, which takes a static lookback input term, Variable Lookback takes an input series that can return a different lookback distance at each point on the chart. This function is useful in conjunction with the •À_Bars Since•À_ output of other functions like the Highest Value or Pivot.
Stochastic RSI StochRSI Stochastic RSI (StochRSI) is an indicator of an indicator. It calculates the Relative Strength Indicator (RSI) relative to its range in order to increase the sensitivity of the standard RSI. The values of the StochRSI are from zero to one.
The Stochastic RSI can be interpreted several ways. Overbought/oversold conditions are indicated when the StochRSI crosses above .20 / below .80. A buy signal is generated when the StochRSI moves from oversold to above the midpoint (.50). A sell signal is generated when the StochRSI moves from overbought to below the midpoint. Also look for divergence with the price to indicate the end of a trend.
See also Stochastic, Stochastic Oscillator and RSI.
The Stochastic RSI was developed by Tushar S. Chande and Stanley Kroll and is described in their 1994 book, The New Technical Trader.
Welles Directional Movement Trend WellesTrend Based on DMI, this trend indicator plots buy and sell markers.
Bollinger Bands (Value) Bollinger Value The Bilinger Value creates Bollinger Bands from a single input value series. This value series is not limited to price data and may be used to create bands on an RSI or MACD, etc.
Bollinger Bands consist of three lines. The middle band is a simple moving average (generally 20 periods) of the input value. The upper and lower bands are F standard deviations (generally 2) above and below the middle band. The bands widen and narrow when the volatility of the price is higher or lower, respectively.
Hull Moving Average (HullMA) HullMA The Hull Moving Average solves the age old dilemma of making a moving average more responsive to current price activity whilst maintaining curve smoothness.
In fact the HMA almost eliminates lag altogether and manages to improve smoothing at the same time.
The Hull MA was developed by Alan Hull.
Generic Bars Generic Bars A Bar Series consists of Open High Low Close Volume and Open Interest
Buy to Open Buy to Open
Sell to Open Sell to Open
Buy to Cover Buy to Cover
Sell to Close Sell to Close
ThresholdTrue ThresholdTrue This operation takes one or more inputs and returns true if there are threshold number true inputs
MultiplyByConstant Multiply By Constant Basic math operation - scalar multiply
Inputs: SignalIn (data)
Terms: Constant
Outputs: signalOut
Multiply Multiply Calculates Result = Input1 * Input2
Divide Divide Calculates Result = Input1 / Input2
DivideByConstant Divide By Constant Calculates Result = SignalIn / Constant
Reciprocal Reciprocal Calculates Result = Constant/SignalIn
Add Add Calculates Result = Input1 + Input2
Subtract Subtract Calculates Result = Input1 - Input2
ConstantValue ConstantValue Calculates Result = Value
Equal (Input) Equal (Input) If Input1 = Input 2 then 1 else 0
NotEqual (Input) NotEqual If Input1 <> Input 2 then 1 else 0
LessThan (Input) LessThan (Input) If Input1 < Input 2 then 1 else 0
LessThanOrEqual (Input) LessThanOrEqual (Input) If Input1 <= Input 2 then 1 else 0
GreaterThan (Input) GreaterThan (Input) If Input1 > Input 2 then 1 else 0
GreaterThanOrEqual (Input) GreaterThanOrEqual (Input) If Input1 >= Input 2 then 1 else 0
Data Series Volume Volume Volume associated with the current instrument
Greater Than (Value) Greater Than (Value)
Less Than (Value) Less Than (Value)
Equal To (Value) Equal To (Value)
Rising Rising
Falling Falling
Time Range Time Range The Time Range allows the user to select start and end times. The output is either true or false depending on whether the current time is in the specified range. The range is inclusive of the start and end times.
Connect the "Bars" output of the Time Interval to the "Bars" input of the Time Filter. The Time Range replaces the Time Filter function from previous versions. The Time Filter is no longer available.
Day of Week Day of Week The Day of Week function returns and integer value 0-6 for the day of the week. 0 is Sunday
SuperTrend SuperTrend The SuperTrend Indicator creates a value that is useful as a trailing stop. The value is based on average true range ATR multiplied by a constant factor. When a change in trend is detected, the value of the indicator will cross the closing price. As a trend, it is useful to take long positions when the value of the supertrend is below the current price. Likewise, the trend is considered down when the value is above the current price.
Net Long Range NLR The NetLongRange Indicator calculates the potential target for a possible long entry of a position. It is calculated as NLR = ATR - (Entry Price - Low). This indicator accepts 2 input series; 1) The entry price and 2) Bars for calculating ATR and knowing the low of the period. The entry price series can be on a different frequency vs ATR bars. For example, you could be entering on a 5 minute and uses the daily bars for ATR and low.
Net Short Range NSR The NeShortRange Indicator calculates the potential target for a possible short entry of a position. It is calculated as NSR = ATR - (High - Entry Price). This indicator accepts 2 input series; 1) The entry price and 2) Bars for calculating ATR and knowing the high of the period. The entry price series can be on a different frequency vs ATR bars. For example, you could be entering on a 5 minute and uses the daily bars for ATR and high.
Static Bar Filter Static Bar The Static Bar filter is a powerful function that takes the bars as input and captures values from a specific time range in a one day period and returns them, creating in essences a frozen bar. Set a time range in the input terms and Static Bar will calculate Open-High-Low-Close-Volume for this time period as if it was a single bar. The Finish output value will be true when the current time is outside the time range. This indicates that the bar is complete. The static bar can be used to capture yesterday's close price for use in any time frame. It can also be used to determine the morning high. The Days Back term allows the function to look back to a previous day's time range. The time range is limited to a single calendar day, so the data cannot cross days.
Time Of Day Time Of Day The Time of Day function returns an integer value for the individual components of the date and time. Hours are expressed as 0-23. Minutes and Seconds as 0-59.
Static Value Filter Static Value The Static Value filter function returns the Open-High-Low-Close of a single value array instead of the values for a series of bar. This means the input can be a MACD instead of just the price. Bars must also be supplied as input as these supply the time information necessary to build the values. As in Static Bar, the values are collected during the time range specified over a single calendar day. The Finish output is true when the current time is outside the time range specified by Start Time and End Time. The time range does not include a date so it cannot exceed 24hrs. The Days Back term allows the function to return the values from an earlier day.
Highest Value Highest Value The Highest Value formation function looks back bar count number of bars to find the Highest Value value in that range. At the same time, the formation finds the Lowest Value that follows the Highest Value. The Range High returns that Highest value found. The Low Since High returns the low that follows the high. The output Bars Since High returns the # of bars prior the current bar where the Highest Value was found. If the current bar is the highest point, Bars Since High returns zero. Likewise, the Bars Since Low output returns the distance to the low value. When the Bars Since High returns zero, this indicates a new high.
Lowest Value Lowest Value The Lowest Value formation function looks back bar count number of bars to find the Lowest Value value in that range. At the same time, the formation finds the Highest Value that follows the Lowest Value. The Range Low returns that Lowest value found. The High Since Low returns the High that follows the Low. The output Bars Since Low returns the # of bars prior the current bar where the Lowest Value was found. If the current bar is the Lowest point, Bars Since Low returns zero. Likewise, the Bars Since High output returns the distance to the High value. When the Bars Since Low returns zero, this indicates a new Low.
Rising Falling Rising Falling The Rising Falling formation function looks for rising values and falling values at the same time and signals true when these conditions are found. The input term Number Rising is used to indicate the number of successive rising values that must be found to signal the Is Rising output. Likewise, the Number Falling input term is used to determine the Is Falling output value. Two input values in a row that are equal are neither rising or falling and cause the function to start counting from zero.
Pivot High Pivot High The Pivot High formation looks for a high value that is surrounded by lower values. The input term Number Left of Peak determines the number of low values required to the left of the peak and the Number Right of the Peak specifies the number of lower values found to the right of the peak. When the values to the right of the peak are confirmed, the Peak Found becomes true. This found condition occurs X number of bars after the peak where X = Number Right of Peak.
Pivot Low Pivot Low Pivot Low looks for a low point surrounded by higher values. There must be Number Left of Peak values to the left of the low that are higher and also Number Right of Low values to the right. The Low Found conditions becomes true X bars after the Low where X = Number Right of Low.
Highest Value w/ Mark Highest Value w /Mark The Highest Value with Mark formation is the same as the Highest Value formation with the addition of one more input called Mark and the Output Mark at High. Any input array can be passed in as the Mark and the output Mark at High will return the value in the Mark data with the same position as the Highest Value. This is very useful in capturing, for example, the MACD value that corresponded to the High Point.
RunningTotal Running Total The Running Total keeps both a running count and running sum of the input value. The running count is the number of non-zero values from the first occurence of non-zero values after the reset. A non-zero value input to the reset will reset the running count and total values. The Bar Count term can be used for automatically triggering a reset after reaching number of bars from the first non-zero values.
Increment Increment/Decrement Increment/Decrement adds a constant value to the input. Use a negative value to decrement. The Increment/Decrement function adds or subtracts the value specified in the term from each value of the input series to product the output series. This is the equivalent of using the Add function and supplying a constant as an addend.
Scale Scale The Scale function multiplies the value specified in the term by each value of the input series to product the output series. This is the equivalent of using the Multiply function and supplying a constant as an input.
Root Root The Root function finds the N root of the input. The default is 2 which produces the Square Root.
Power Power The Power function takes the input value and raises it to the N power.
Mod Mod The Mod function divides each value of the input series by the term value and returns the remainder to the output series.
Lowest Value w/ Mark Lowest Value w/ Mark The Lowest Value with Mark formation works the same as the Lowest Value formation with the additional ability to return an additional value from the input that corresponds to the Lowest value returned by the function. This could be used, for example, to return the volume from the bar with the Lowest Value. The Mark value takes any input array and the Mark at Low output returns the value that matches the Lowest Value.
Ascend/Descend Ascend/Descend The Ascend/Descend function follows the input value series and counts the number of consecutive ascending and descending values at each point in the series. The first point in the series will have 1 as its up count and 1 as its down count. If the next value is greater, it will have an up count of 2 and the down count will remain at 1. A third point of ascending value will have an up count of 3 and the down will remain at 1. At this point, the Low value output will remember the most recent value where the up count was 1. Likewise, the High value remembers the most recent input value where the down count was one. So if the fourth point is lower than the third, the down count will become 2 and the up count will now be one. If the Equal OK term is non-zero, consecutive equal values will increment both up and down counters. If the Equal OK term is zero, equal values reset both counts to 1.
Not Not The Not operation takes an input series and returns a One everywhere the Input was zero and returns a Zero everywhere the input was Non-Zero.
Absolute Value Absolute Value The Absolute Value operation takes an input series and returns the absolute value of each element in the input series
Sustain Sustain The Sustain function takes a data series as input and causes each Non-Zero or True value to repeat up to Barcount times or until another Non-Zero or True value is encountered in the series. This is very useful when looking for two or more conditions to occur at about the same time, but you do not need to have them occur at exactly the same time. Some of the other TrendLens indicators such as the Candle Patterns have a sustain built in.
Min Min The Min operation takes two input series and returns the minimum value at each point in the series
Max Max The Min operation takes two input series and returns the minimum value at each point in the series
Between Between The Between function takes an Upper and Lower series plus a Value series and looks to see if the value element is between the Upper and Lower elements. It returns the answer in two ways. First, if the value is between the upper and lower range for size # of bars in a row, the In Between output will return True. The default size of zero requires the value to be between upper and lower for the current bar only. Size of 1 would require the current bar plus one previous bar, etc. The second way this function returns the answer is via the Count output. This output does not consider the Size term, it just returns the Count of the consecutive # of bars where the value is between. This output is zero when the value is not between and count up as each bar is found to be between. The inclusive term, if non-zero, will allow the value to be equal to the upper or lower bounds and still be true. Otherwise, the value must be less than the upper and greater than the lower bounds for count bars.
Slope Slope The Slope function takes two X & Y coordinates and returns their slope value which is the ratio of the change in Y divided by the change in X.
If-Then-Else If-Then-Else The If-Then-Else function takes the first input and if that input value is non-zero, it will return the value of the 2nd input as the result. If the first input value is zero, then the 3rd input value is returned as the result.
If-Then If-Then The If-Then function takes the first input and if that input value is non-zero, it will return the value of the 2nd input as the result, otherwise returns 0.
Y Plot Y Plot The Y Plot function takes a pair of X,Y points and returns the Y intercept value of the line defined by the pair of X,Y points. The X values represent the distance in bars relative to the current point which is always 0. Useful X values are returned by ‰ÛÏBars Since‰Û outputs found in the other formation functions listed here.
Trend Support Resistance Bars TSR This study indicates when there is a trading bar where price movement is opposite to the trend as indicated by the candle tail with 45% or more wrt whole range of the bar. The tail should be on the side of the direction of the trend. For uptrend, it's an upper tail and lower tail for downtrend.
The idea is when that there is/are bigger player(s) on the instrument that are opposing the trend. If the price goes back to retrace the tail and actually break it, the opposition has exhausted or decided not to oppose anymore and there should be a strong move going back to the direction of the trend for at least 1 bar after the breakout.
Center Weight CenterWeight CenterWeight describes the short-term collective energy on market buyer and seller for this security as exhibited by the price spread and close of the last 3 recent bars.
Using the previous 3 trading period's Trader's pivot points, the average weight is calculated.
The idea is when the current candle's body is away from the center weight, there is momentum on the stock on the direction of the candle body from the weight.
On the other hand, if the weight is inside the candle's body, the forces are in momentary equilibrium or the security has entered into a consolidation.
Weak Counter Trend Indicator WCT Bull and Bear setup indicates when mid-range simple moving average is sloping yet the closing price is on the other side of SMA.
An extra output (ReturnToSMA) indicates a return to the moving average of the price after a setup and can be use as an exit alert input.
Pivot High Lookback Pivot High Lookback The Pivot High Lookback is similar to the Pivot High. The difference is that Pivot High Lookback gives you the ability to know the nth peak from the current bar. Output Peak returns the value of the nth peak, while the NumberOfBarsBefore returns the number of bars when that nth peak happens with respect to the current bar. Like Pivot High, a peak is is surrounded by lower values. The input term Number Left of Peak determines the number of low values required to the left of the peak and the Number Right of the Peak specifies the number of lower values found to the right of the peak. An extra InputRegister input can be used to output RegisterValueAtNthPeak which corresponds to the value of the input data series that the time of the nth peak. The term Lookback is the nth number of peaks you want to go back.
Dynamic Pivot High Count Dynamic Pivot High Count The Dynamic Pivot High Count counts the number of pivot highs from the moment Trigger Input is not equal to zero. The component and count gets resets when Reset input is not equal to zero and at this point, the component will wait for the Trigger Input to start counting again. Output Peak Count returns the number of pivot highs happened from the last trigger. Bars From Last High returns the number of bars when the last pivot high happens. Bars From Last Trigger returns the number of bars when the last trigger happens. All the input terms are similar to Pivot High. The input term Number Left of Peak determines the number of low values required to the left of the peak and the Number Right of the Peak specifies the number of lower values found to the right of the peak.
Pivot Low Lookback Pivot Low Lookback The Pivot Low Lookback is similar to the Pivot Low. The difference is that Pivot Low Lookback gives you the ability to know the nth low from the current bar. Output Low returns the value of the nth low, while the Bars Since Nth Low returns the number of bars when that nth low happens with respect to the current bar. Like Pivot Low, a low is is surrounded by higher values. The input term Number Left of Low determines the number of high values required to the left of the low and the Number Right of the Low specifies the number of higher values found to the right of the low. An extra InputRegister input can be used to output Register Value At Nth Low which corresponds to the value of the input data series that the time of the nth low. The term Lookback is the nth number of lows you want to go back.
Dynamic Pivot Low Count Dynamic Pivot Low Count The Dynamic Pivot Low Count counts the number of pivot lows from the moment Trigger Input is not equal to zero. The component and count gets resets when Reset input is not equal to zero and at this point, the component will wait for the Trigger Input to start counting again. Output Low Count returns the number of pivot lows happened from the last trigger. Bars From Last Low returns the number of bars when the last pivot low happens. Bars From Last Trigger returns the number of bars when the last trigger happens. All the input terms are similar to Pivot Low. The input term Number Left of Low determines the number of high values required to the left of the low and the Number Right of the Low specifies the number of higher values found to the right of the low.
Dynamic Register Dynamic Register Dynamic Register is a component that will let a strategy remember a specific value in time. Input Series is a data series that is the source of the data to be remembered. When the value of Trigger Input is not equal to zero for the first time, Dynamic Register will remember the value of the Input Series at that exact moment in time and will continue to Output that value until Reset receives a value not equal to zero. When Reset gets a value of not equal to zero, the component is reset back to its initial state with zero as the Output until Trigger Input gets a non-zero value. This component will be helpful for remembering like the Low of the bar before an Entry as a Stop-Loss. The Stop-Loss value can then turns into a Profit-Stop by rasing the value once a certain target is reached.
Dynamic Register Multi Dynamic Register Multi Dynamic Register Multi is a component similar to dynamic register but comprises of 5 registers. It will let a strategy remember up to 5 specific values in time. Input Series is a data series that is the source of the data to be remembered. When the value of Trigger Input is not equal to zero for the first time, Dynamic Register will remember the value of the Input Series at that exact moment in time and will continue to Output that value until Reset receives a value not equal to zero. When Reset gets a value of not equal to zero, the component is reset back to its initial state with zero as the Output until Trigger Input gets a non-zero value. This component will be helpful for remembering like the Low of the bar before an Entry as a Stop-Loss. The Stop-Loss value can then turns into a Profit-Stop by rasing the value once a certain target is reached.
Dynamic Register Multi - No Reset Dynamic Register Multi - No Reset Dynamic Register Multi - No Reset is a component similar to dynamic register but comprises of 5 registers. It will let a strategy remember up to 5 specific values in time. Input Series is a data series that is the source of the data to be remembered. When the value of Trigger Input is not equal to zero for the first time, Dynamic Register will remember the value of the Input Series at that exact moment in time and will continue to Output that value. This component will be helpful for remembering like the Low of the bar before an Entry as a Stop-Loss. The Stop-Loss value can then turns into a Profit-Stop by rasing the value once a certain target is reached.
Change Lookback Change Lookback This is an enhanced version of the Lookback Period function. Unlike the Lookback Period function, which will lookback based on a static input term, Change Lookback takes an input term that determines the number of changes from the current data point in the series and returns lookback distance, the lookback value on the series. It also accepts a second data series which you can use as the third output that corresponds to the lookback position. This function is useful in conjunction with the ‰ÛÏPeak‰Û or "Low" outputs of functions like the Pivot High and Pivot Low. You can for instance figure out the close price from the last 2 highs. By combining two Change Lookback and Pivot High, you can easily make a comparison if the last 2 highs is increasing in value.
Open Interest Open Interest
Bars Bars An Index Bar Series consists of Open High Low Close Volume and Open Interest.
Outputs are calculated based on the sum of the weighted values from constituents' securities
Pairs Symbol Pairs Symbol
Time Interval Change Bars Time Interval Bars
Time Interval Change Value Time Interval Values
AND AND The AND function takes the first and second inputs and if value of the inputs are non-zero, it will return 1, otherwise returns 0.
OR OR The OR function returns 1 if either the first or the second input has a non-zero value, otherwise returns 0.
Else Else The Else function is also can be referred to as a NOT function. It returns the second input if the first input has a zero value, otherwise returns 0.
If-Then-ElseIf-Then If-Then-ElseIf-Then The If-Then-ElseIf-Then function takes the first input and if that input value is non-zero, it will return the value of the 2nd input as the result, otherwise check if the value of the 3rd input is non-zero and returns the value of the 4th input if it is, otherwise returns the value of the 5th input.
Price Percent Trailing Stop with Modified Hard Stop Price Percent Trailing Stop with Modified Hard Stop
Exit on Price Percent Change Exit on Price Percent Change
Exit on Price Change Exit on Price Change
Exit on Position PnL Percent Change Exit on Position PnL Percent Change
Exit on Position P&L Dollar Change Exit on Position P&L Dollar Change
Price Percent Trailing Stop with Modified Trailing Stop Price Percent Trailing Stop with Modified Trailing Stop
Stop After Number of Bars Stop After Number of Bars
Price Dollar Trailing Stop Modified TrailingStop Price Dollar Trailing Stop Modified TrailingStop
Price Target with Trailing Stop Price Target with Trailing Stop
Calculated Profit Target Profit Target
Calculated Stop Loss Stop Loss
Calculated PnL with Modified Hard Stop CalculatedPnLModHardStop
Calculated PnL with Modified Profit Stop CalculatedPnLModProfitStop
Calculated PnL with Trailing Stop CalculatedPnLTrailingStop
Calculated PnL with HighLows-Based Trailing Stop CalculatedPnLHiLoTrailingStop
Fixed Capital Fixed Capital
Percent of Available Funds % Avail Funds
Percent of Initial Funds % Initial Funds
Fixed Quantity Fixed Quantity
Fixed Ratio Fixed Ratio
Percent Account Value % Account Value
True Sum TrueSum If 'Threshold' number of these conditions are true, then return true
Moving Averages WellesMA3 The Welles Wilder method of calculating moving averages is very similar to a Simple Moving Average. Both calculations provide similar results. Welles designed his formula to be easily computed by hand or with a simple calculator. For the sake of consistency Welles' Moving Averages are used in all Welles indicator formulas (ADX, ADXR and ATR).
Indicator 1 Indicator 1 The Moving Average Convergence Divergence (MACD) is the difference between two Exponential Moving Averages. The Signal line is an Exponential Moving Average of the MACD.
Indicator 2 WellesDM The DMI series function returns the directional movement index (DMI) for a security.
Indicator 3 Indicator 3 The Stochastic Oscillator measures where the close is in relation to the recent trading range. The values range from zero to 100. D values over 75 indicate an overbought condition; values under 25 indicate an oversold condition. When the Fast D crosses above the Slow D, it is a buy signal; when it crosses below, it is a sell signal. The Raw K is generally considered too erratic to use for crossover signals.
Indicator 4 Indicator 4 The RTTT Trend Channel is a useful tool for traders who use trend-following trading techniques. This indicator attempts tell you if you are in either an up or down trend, and when the trend is over. The RTTT Trend Channel is particularly useful as a trailing stop when following a trend.
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