Explanations on Candlestick Chart Indicators (I)

2025-03-27 UTC
163005 Lido
38

1. EMA

The EMA (Exponential Moving Average) indicator, also known as the EXPMA indicator, is a trending exponential moving average indicator. With respect to the EMA indicator, today's price is more important than yesterday's, because the former can reflect the most recent price fluctuations. The EMAs give more stable performance in weekly handling, with fewer golden cross and death cross generated, and can respond immediately even if the crosses appear. The golden cross is created when the short-term line goes up to intersect the long-term line; in contrast, the death cross refers to the short-term line going down to intersect the long-term line. The golden cross's long position is as powerful as the death cross's short position; both the golden cross and death cross are critical trading points.

2. MACD

Moving average convergence /divergence, also called MACD, is a directional movement index proposed by Gerald Apple. According to the construction principle of the moving average, an arithmetic mean value is obtained by processing the closing price, then do the calculations later. The MACD has the advantages of stability, tendency, and soundness, and can be used to tell and judge the timing of buying and selling and predict price fluctuations.

3. SMI Ergodic Indicator/Oscillator

The SMI Ergodic Indicator is similar to the True Strength Index (TSI), except that the SMI includes signal lines. The SMI draws the signal line using twice the moving average of the price minus the previous price on both timeframes.

4. Spread

The spread indicator refers to the current spread that is displayed in the chart window.

5. Ichimoku Cloud

The Ichimoku Cloud is the most popular trading chart tool in Japan and is widely used by investors. It was invented by Ichimoku Yamato, a Japanese journalist. The Ichimoku Balance consists of the daily K line (called the daily line in the Ichimoku Cloud ), 5 lines, and a corporate resistance band (commonly known as the cloud map). Ichimoku Cloud can depict market force distribution, and display the relationship between the buy and sell signals.

6. TRIX

TRIX is a technical analysis tool for studying long-term stock price trends. It can smooth the value of the moving average three times in order to solve the problems of deceitful lines and frequent crossings when using the moving average system. It cuts the frequent occurrence of cross signals, and can better predict the long-term trends of stock price.

7. Zig Zag

The Zig Zag, also known as the Parabolic SAR, is a directional line connecting a series of price points. Zig Zag can easily perceive and tag relative high and low price points in the past and reveal transitions and changes in prices. When using the Zig Zag, a line is drawn only when the relative price function is greater than a set range, thereby optimizing the chart by eliminating market noise and ignoring the horizontal moves. Generally, ZigZag can be used alone to observe current trends, or used in conjunction with other technical analysis tools.

8. Price Volume Trend

The price volume trend indicator (PVT) shows the change in the closing price calculated by the sum of the growing trade volume.

9. Coppock Curve

The Coppock Curve, also known as the "Estimated Wave Curve" is a long-term indicator that measures market momentum by calculating a weighted average of monthly price changes. The Coppock Curve was put forward by Edwin · Sedgwick · Coppock in 1962, which is mainly used to judge the arrival of the bull market.

10. Klinger Oscillator

Proposed by Stephen J. Klinger, it is a volume-related technical indicator that is used to confirm the direction and strength of a price trend.

11.Net Volume

The Net Volume is calculated by subtracting a security's declining volume from its rising volume over a specified time period, generally used to judge whether the market sentiment is bullish or bearish. Net Volume is usually placed below the price chart, and the bar chart for each period shows the net volume value for that period.

12. Know Sure Thing

The Know Sure Thing is a two-line oscillator used to predict the stock price trend. It moves above and below the zero line, provides trading signals, and reveals changes based on price and KST divergences and signal line crossings.

13. Moving Average Weighted

The Moving Average Weighted emphasizes the importance of the most recent data point compared to a simple moving average. Each point in the period is assigned a maximum multiplier of the most recent data point and then descends in order to change the weight or importance of that particular data point. The oldest data points will be given up as long as new data points are added to the beginning.

14. Directional Movement

Directional Movement, also known as the DMI Trend Indicator, is a long-term technical analysis tool for the stock market. It was created by Wells Wilder (Wales Wilder). It is a technical indicator that judges the stock price trends by analyzing the changes in the balance of power between buyers and sellers over the rising and falling of the stock prices, that is, the changes in the power balance between the long and short parties due to price fluctuations.

15. Momentum

The Momentum is also known as the Development Momentum Technical Indicator, a short-term technical analysis tool is a specialized study of volatility. Momentum index theory is based on the relationship between price and supply and demand. Prices increase over time and must gradually contract, and the speed of change force slowly slows down before the market can reverse. On the other hand, the fall is also true. The Momentum Index is calculated by the speed of such price fluctuations, resulting in different signals being transmitted to the stock price reaching peaks and troughs.

16. Awesome Oscillator (AO)

The Awesome Oscillator technical indicator is generated by calculating the difference of a simple moving average between a 34 periods and a 5 periods. AO is often used to confirm a trend or predict a possible reversal.

17. Envelope

With respect to the ever-changing production capacity of each enterprise, there is a tangent point between a long-term use cost LTC curve and a short-term target cost STC curve. The scale of production and operation represented by the STC curve reflects the optimal production management scale for the society to produce the output, and the total cost represented by the tangent point is the minimum total cost for producing the output.

18. Historical Volatilities

Historical volatility is calculated based on statistical data in the past, assuming that the future is an extension of the past.

19. Double EMA

DEMA is a moving average that is more responsive to recent price changes than the ordinary exponential moving average (EMA)

20. Rate Of Change

The rate of change is used to mathematically describe the percentage change in value over a defined period of time, and it represents the momentum of a variable.

21. Donchian Channels

Donchian Channels are three lines generated by moving average calculations that comprise an indicator formed by upper and lower bands around a midrange or median band. The upper band marks the highest price of a security over N periods while the lower band marks the lowest price of a security over N periods. The area between the upper and lower bands represents the Donchian Channel.

22. Commodity Channel Index

CCI, also known as the homeopathic indicator or the commodity path indicator, is a stock market analysis tool to judge the deviation of commodity prices. It operates on the assumption that commodity (stock or futures) prices change on a cyclical basis, with peak price and valley price alternating periodically.

23. Balance of Power

In algorithmic trading, BOP is mainly used to reflect the balance of power between buyers and sellers when the price is pushed to a certain extreme value. It can help determine the timing of intervening in trade and the trend of the trade, and predict whether a shock period will come.

24. Williams Fractal

The fractal indicator is one of the five indicators in the Bill Williams trading system. It has high and low values on the chart and is equipped with up and down arrows, which can measure the bottom line or the upper line.

25. Williams %R

Williams %R, abbreviated as WMS %R or %R, was created by Larry Williams in 1973. It is a technical indicator used to analyze the short-term trend of the Chinese market. It is mainly used to reflect the impact of stock price fluctuations by analyzing the timing of peaks and troughs of trading or stock price. It uses the oscillation point to analyze the overbought and oversold phenomenon and can be used as a buying and selling signal by predicting the highs and lows in the cycle.

26. Williams Alligator

The indicator applies convergence-divergence relationships to build trading signals, with the Jaw making the slowest turns and the Lips making the fastest turns.

27. Bollinger Bands %B

Bollinger Bands %B is an indicator derived from the standard Bollinger Bands indicator that quantifies or shows the price in relation to the lines and can be used to identify trends and trading signals.

28. Bollinger Bands

A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preferences. Bollinger Bands were developed and copyrighted by famous technical trader John Bollinger, designed to discover opportunities that give investors a higher probability of properly identifying when an asset is oversold or overbought.

29. Bollinger Bands Width

The Bollinger Band Width is the difference between the upper and the lower Bollinger BandsOpens in a new window divided by the middle band. It can be used to analyze market trends and predict when they will end.

30. Average Directional Indicator

The average directional indicator (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend.The trend can be either up or down, and this is shown by two accompanying indicators, the negative directional indicator (-DI) and the positive directional indicator (+DI). Therefore, the ADX commonly includes three separate lines. These are used to help assess whether a trade should be taken long or short, or if a trade should be taken at all.

31. Smoothed Moving Average

Smoothed Moving Average (SMMA) is one of many average calculation methods, and it can help judge the timing of buying and selling in the securities trading market.

32. CRSI

The Connor Relative Strength Index (CRSI) is a technical indicator that ranges between 0 and 100, used to identify conditions for short-term overbought and oversold. it was created by Larry Connors.

33. Volume

Volume is the amount for a particular transaction over a certain period of time. It can be displayed in the time-sharing control chart, including in the forms of the daily chart, weekly chart, monthly chart analysis, and even minute chart. Changes in the market volume reflect the flow of funds into and out of the market. It is an important indicator to reflect market trends.

34. VWAP

The volume-weighted average price (VWAP) is a technical analysis indicator used on intraday charts that resets at the start of every new trading session. It's a trading benchmark that represents the average price security has traded at throughout the day, based on both volume and price.VWAP is important because it provides traders with pricing insight into both the trend and value of a security.

35. VWMA

The Volume-weighted Moving Average (VWMA) emphasizes volume by weighing prices based on the amount of trading activity in a given period of time. Users can set the length, the source and an offset. Prices with heavy trading activity get more weight than prices with light trading activity. In periods of low market volume, the SMA and the VWMA are close in value. The indicator can be used to identify and trade trends. Price crossing it could point to a directional change. The VWMA is often used in combination with other signals and analysis techniques.

36. Volume Oscillater

The Volume Oscillator (VO) works on the technical premise that it is not the actual level of volume, but the change in volume relative to the recent past that has more technical significance. It is used to determine market conditions when buying and selling.

37. Parabolic SAR

The parabolic SAR attempts to give traders an edge by highlighting the direction an asset is moving, as well as providing entry and exit points. In this article, we'll look at the basics of this indicator and show you how you can incorporate it into your trading strategy. We'll also look at some of the drawbacks of the indicator.

Inscreva-se agora para ter a oportunidade de ganhar até $10,000!
signup-tips