Technical Indicator: Bollinger Bands

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  • On November 4, 2016
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  • Futures Index Trading, IndexTrader Advanced, Technical Analysis, Technical Indicators
In the 1980’s, John Bollinger developed the technique of using a moving average as a centre line and two price channels (bands) above and below the centre line. The centre line is an exponential moving average; the price channels are the standard deviation of the product being studied. The standard deviation is a mathematical formula […]
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Technical Indicator: Average Directional Movement Index

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  • On November 4, 2016
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  • Futures Index Trading, IndexTrader Advanced, Technical Analysis, Technical Indicators
Average Directional Movement Index Technical Indicator (ADX) was developed by J. Welles Wilder and can be successfully to signal trend changes and to indicate whether a futures price is trending or ranging. Used to quantify trend strength, ADX calculations are based on a moving average of price range expansion over a given period of time. […]
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Technical Indicator: Commodity Channel Index

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  • On November 4, 2016
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  • Futures Index Trading, IndexTrader Advanced, Technical Analysis, Technical Indicators
The Commodity Channel Index (also known as CCI) is an indicator that was first introduced by Donald Lambert in 1980. It can be used either as an oscillator showing overbought and oversold levels, or as a trend indicator showing the beginning and end of trends. The CCI is calculated using the price, a simple moving […]
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Technical Indicator: Parabolic SAR

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  • On November 4, 2016
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  • Futures Index Trading, IndexTrader Advanced, Technical Analysis, Technical Indicators
In the field of technical analysis, Parabolic SAR (SAR – stop and reverse) is a method devised by J. Welles Wilder, Jr., to find trends in market prices. The Parabolic SAR indicator draws on the concept of time decay, and unless a security can continue to generate more profits over time, it should be liquidated. […]
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Technical Indicator: Moving Average Convergence/Divergence

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  • On November 4, 2016
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  • Futures Index Trading, IndexTrader Advanced, Technical Analysis, Technical Indicators
Developed by Gerald Appel in the 1970‘s, Moving Average Convergence/Divergence (MACD) indicates the correlation between two price moving averages; the 26-period and 12-period Exponential Moving Average (EMA) and in order to clearly show buy/sell opportunities, a signal line (9-period indicators` moving average) is plotted on the MACD chart. The MACD turns two trend-following indicators, moving […]
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Technical Indicator: Average True Range

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  • On November 4, 2016
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  • Futures Index Trading, IndexTrader Advanced, learn to trade, Technical Analysis, Technical Indicators
Developed by J. Welles Wilder, the Average True Range (ATR) is an indicator that measures volatility and market commitment by comparing daily range for each successive day. Expanding and contracting ranges signal eagerness in a trending market. ATR is the average of the True Range (TR) over the past n periods. This is calculated the […]
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Technical Indicator: Stochastic Oscillator

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  • On November 4, 2016
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  • Futures Index Trading, IndexTrader Advanced, learn to trade, Technical Analysis, Technical Indicators
The Stochastic Oscillator technical indicator, developed by George C. Lane in the late 1950s, is a momentum indicator that compares the location of the close price relative to the high-low range over a set number of periods. The Stochastic Oscillator is displayed as two lines. The main line is called %K. The second line, called […]
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Technical Indicator: Rate-of-Change

  • Posted by admin
  • On November 3, 2016
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  • Futures Index Trading, IndexTrader Advanced, learn to trade, Technical Analysis, Technical Indicators
The Rate-of-Change (ROC) indicator, which is also referred to as simply Momentum, is a pure market momentum oscillator that measures the percent change in price from one period to the next. The ROC calculation compares the current price with the price “n” periods ago. If the share prices increase in this period, the ROC will […]
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Technical Indicator: On Balance Volume

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  • On November 3, 2016
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  • Futures Index Trading, IndexTrader Advanced, learn to trade, Technical Analysis, Technical Indicators
On Balance Volume (OBV) was developed by Joe Granville in 1963, and was one of the first indicators to measure positive and negative volume flow as simply a running total of positive and negative volume. OBV is a simple indicator that uses volume and price to measure buying and selling pressure. This is done as […]
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Technical Indicator: Accumulation/Distribution

  • Posted by admin
  • On November 3, 2016
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  • Futures Index Trading, IndexTrader Advanced, learn to trade, Technical Analysis, Technical Indicators
The technical analysis statements that “volume precedes price” implies that, in many cases, after decline and just before a reversal, we may see an increase in the volume (volume surge).The accumulation/distribution line, developed by Marc Chaikin, is one of the more popular volume indicators that measures money flows in a security. The Accumulation/Distribution Technical Indicator […]
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