The alligator is the metaphor for this technical indicator. Three lines are used to create it on a price chart. Each line in the indicator is a moving average of a different time period: the 5 SMA , 8 SMA and 13 SMA. The lines represent the jaw(13), the teeth(8), and the lips(5)of the alligator. […]
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The Supertrend is a trend trading indicator used to define the path of least resistance on a chart. The SuperTrend is a technical indicator that signals the direction of current momentum. It uses the Average True Range to calculate its value. It generates buy and sell signals as price moves through the current indicator value,
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The Ichimoku Cloud is a technical indicator that tries to quantify support and resistance, it identifies the direction of the trend, and measures the momentum to create potential trading signals. The original name of this indicator was the Ichimoku Kinko Hyo which translates to English as “one look equilibrium chart”. This name tries to express
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Volume is like votes on the price of a stock as each trade is an agreement between a buyer and a seller to exchange shares. The volume is the amount of trades that occur during each time period on a chart. Technical traders look for correlations between price action trends and the increasing and decreasing
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The Stochastic Oscillator is a momentum indicator that measures the location of the closing price on a chart in relation to the high to low trading range over a period of time. This indicator was created by George C. Lane in the late 1950s. The Stochastic Oscillator isn’t following the trend in price or volume,
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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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The BB/KC Squeeze Indicator, more popularly known as the TTM Squeeze Indicator is both a volatility and momentum indicator that visual shows the correlation between Bollinger Bands® and Keltner Channels on a chart. This helps to identify when a chart is compressing or ‘squeezing’ into a tight range as this signals when the probability becomes
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The volume–weighted moving average (VWMA) quantifies the quantity of volume that prices traded at on a chart. The VMWA weighs prices based on the volume of trades in a time frame. The VMWA is represented by a line on a chart that changes as price and volume changes. Traders can use VWMAs for different time frames
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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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Oversold is a technical analysis term for when the price of a company’s stock is considered too low from a technical view point. Value investors can also measure a stock as oversold from a fundamental perspective of business value. Oversold stocks are shares in a company that have gone down so far and so fast
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