Here is a great technical indicators cheat sheet graphic created by Tradeciety.com What are the 4 types of indicators? Trend Indicators These indicators measure the direction of price action through quantifying uptrends and downtrends on a chart. They include moving averages and parabolic SAR. Momentum Indicators These indicators measure the magnitude and strength of movement […]
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The RSI indicator strategy uses the Relative Strength Index to make buy and sell decisions on a chart based on oversold and overbought reading versus the price of a stock or security. What Does the Relative Strength Index (RSI) Measure? The Relative Strength Index (RSI) is a technical indicator that traders use to quantify the
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RSI Divergence Cheat Sheet Bullish RSI Divergence A bullish RSI divergence pattern is defined on a chart when price makes new lower lows but the RSI technical indicator doesn’t make a new low at the same time. This is a signal that bearish sentiment is losing momentum with the high probability that buyers are stepping
What is the RSI indicator? The RSI indicator buy and sell signals are based on oversold and overbought conditions on a stock chart. The RSI is a measurement of price moving too far and too fast in one direction and as the RSI gets extended farther from the 50 RSI middle line the probability of
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The RSI indicator buy and sell signals are based on oversold and overbought conditions on a stock chart. The RSI is a measurement of price moving too far and too fast in one direction and as the RSI gets extended farther from the 50 RSI middle line the probability of a reversion to that mean
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The Parabolic SAR (stop and reverse) indicator is a technical trading tool that quantifies both trends and price reversals on a chart and can be used as a stop loss, trailing stop, or entry signal. The Parabolic SAR indicator was created as a trend following tool that allowed winning trades to run until they stopped
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The Chaikin Money Flow or CMF is a technical indicator created by Marc Chaikin and is a volume-weighted average of accumulation and distribution over a specific period of time. The standard time period used for this indicator is 2o days and is usually the default setting on many charting platforms. The CMF sums money flow
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On-Balance Volume (OBV) is a type of momentum indicator that uses volume to project the potential for price change. It measures buying and selling pressure as a cumulative indicator. By adding up the volume on up days and subtracting volume on down days, the indicator calculates and quantifies when the market is showing accumulation and
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What is ATR? The ATR indicator is the average true range technical indicator used in technical analysis to quantify the multi-day price range volatility on a chart. It is usually derived from the 14-day simple moving average of prices and the trading range and calculates the full trading range of price action. Charts can have gaps
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The following is a guest post from @PatternsWizard of PatternsWizard.com What is the Relative Strength Index (RSI)? RSI is a technical indicator used in technical analysis that helps to gauge the velocity of price changes. It is also a momentum oscillator and can point to overbought/oversold market conditions. RSI functions on the assumption that prices tend
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