The ADX indicator is a tool used to measure the strength of a trend and can be very useful to determine if a trend is strong or weak. High readings indicate a strong trend and low readings indicate a weak trend. A trading range is likely to develop when the trading range is showing a low reading. So one should always avoid stocks with low readings. ADX stands for Average … [Read more...]
Volume Oscillator Indicator : Application & Chart
The Volume Oscillator clarifies whether the volume trend is increasing or decreasing by using the difference between a longer and a shorter moving average of volume. When the Volume Oscillator rises above zero the shorter-term volume moving average has risen above the longer-term volume moving average. This means that the short-term volume trend is higher than the longer-term … [Read more...]
Volume Oscillator Indicator : The Concept
The work of a volume oscillator is to measure volume by measuring the relationship between two moving averages. The volume oscillator indicator calculates a fast and slow volume moving average. The difference between the two is then plotted as a histogram. The fast volume moving average is usually over a period of 14 either days or weeks. The slow volume moving average is … [Read more...]
Commodity channel Index : Application & Chart
The Commodity Channel Index (CCI) was designed by Donald Lambert to identify cyclical turns in commodities. The assumption behind the indicator is that commodities move in cycles, with highs and lows coming at periodic intervals. Lambert recommended using 1/3 of a complete cycle as a time frame for the CCI. If the cycle runs 60 days (a low about every 60 days), then a 20-day … [Read more...]
Commodity Channel Index : The Concept
Originally developed by Donald Lambert, The Commodity Channel Index (CCI) is an oscillator which has also been featured in his book "Commodities Channel Index: Tools for Trading Cyclical Trends". The indicator, since its introduction, has grown in popularity and is now a very common tool for traders to identify cyclical trends not only in commodities but also equities and … [Read more...]