Donchian Channel indicator was developed by Richard Donchian. It is a technical momentum indicator that calculates the higher highs and lower lows of a specific period of time forming a channel around those values with upper and lower bands. When Donchian channel is calculated, 20-period highs and lows are considered. Also, a middle line is formed […]
Disparity Index Indicator Strategy, Formula, Settings
Disparity Index is a technical momentum indicator that compares the current market price with the moving average of price over a particular time period. When disparity index indicator is calculated, it is done for a specific time period. Thus, the current price trend with respect to moving average of a longer time period is easily identified. […]
Detrended Price Oscillator Indicator Trading Strategy
As the name implies, the Detrended Price Oscillator indicator (DPO) attempts to eliminate the trends in price through the plotting chart. DPO is based on the fundamental idea that long-term price cycles are made up of short-term cycles. Identifying these short-term components of long-term cycles will be able to help us in finding the major […]
Darvas Box Indicator and Formula, Strategy
Darvas Box indicator is a great technical analysis tool which was introduced by Nicholas Darvas. Darvas was a dancer who made $2,000,000 within a period of 18 months, trading in the market while on a global dance tour using this theory. This trading technique uses the fundamental idea of trading those stocks that have made […]
Correlation Coefficient Indicator And Formula
Statistically speaking, two sets of data or two variables are said to be considered as correlated if there exists a statistical relationship (linear interdependence) between the two datasets or two variables. If two data sets or variables have a strong statistical relationship between them, they can be said as highly correlated. Investopedia defines this indicator as […]
Coppock Curve Technical Indicator Strategy, Formula
Coppock Curve technical indicator was introduced by E.S. Coppock in 1965. The indicator was designed to help the longtime investors in the market. Primarily the indicator was designed for a monthly timescale. earlier the indicator was used to create buy opportunities. Buy position was created when the curve moved to positive territory from negative. Later […]
Commodity Channel Index Indicator (CCI Indicator)
Commodity Channel Index indicator (CCI) was introduced by Donal Lambert. CCI measures the variations of the price of a stock with respect to its statistical mean. Contrary to the meaning derived from its name, the CCI works well with any stock or index. High values of CCI show that the stock price is high compared to […]
Choppiness Index Indicator Trading Strategy
Choppiness Index indicator (CHOP), as the name suggests, was introduced to determine whether the market is choppy, that is whether it is range bound or whether the market is trending, that is the market is following a particular trend in either direction. The indicator is not directional. The values do not help to create any […]
Chande Momentum Oscillator Formula
Chande Momentum Oscillator (CMO) was introduced by Tushar Chande who has also invented the Chande Forecast Oscillator. The oscillator is created by calculating the difference between the sum of all recent gains and that of all recent losses over a particular period of time. Then the obtained result is divided by sum of all price movement […]
Tushar Chande Forecast Oscillator Trading Strategy
Chande Forecast Oscillator or Tushar Chande Forecast Oscillator (CFO) was developed by Tushar Chande. This oscillator can be said to be an extension of linear regression based indicators. This oscillator plots the difference between the closing price of the stock and the linear regression based price forecast over a specific period of time. By default, the period is […]
Chaikin Volatility Indicator Formula, Strategy
Chaikin volatility indicator was developed by Marc Chaikin who also has developed the Chaikin Money Flow or CMF indicator. Volatility is depicted by the indicator because it calculates the difference between the high and low for every period or candle. The indicator measures the difference between two moving averages of volume-weighted accumulation/ distribution line. Thus […]
Chaikin Money Flow Indicator Strategy, Formula
Chaikin Money Flow (CMF indicator) is an indicator for technical analysis that is used to measure the volume of Money Flow over a specific period of time. Money Flow Volume, a concept created by Marc Chaikin who also introduced the accumulation distribution line, quantifies the buying and selling pressure on a stock over a single period of time. […]
COG Indicator (Center Of Gravity Indicator) Strategy
Center of Gravity indicator (COG) is a technical analysis oscillator with almost zero lag. COG indicator was introduced by John F Ehlers in 2002. It is a modern oscillator. The COG indicator is an oscillator which is smoothed to prevent undesirable whipsaws. The center of Gravity is characterized by the following essential features. The smoothing helps to […]
Bollinger Bandwidth Technical Indicator, Strategy
We have already learned about the usage of Bollinger Bands indicator. In this post we will discuss on Bollinger Bandwidth (BBW), which is a technical analysis indicator derived from the standard Bollinger bands. BBW measures the percentage difference between upper and lower bands. The Bollinger band is characterized by the following: The bandwidth decreases as the Bollinger […]
Bollinger Bands Indicator Formula, Strategy
Bollinger Bands is similar to price envelopes like ATR Bands. Though the difference of Bollinger with many other bands is that Bollinger bands indicator is plotted at specific standard deviation levels. The default standard deviation levels are 2. There is also a mid-band besides the upper and lower band. If st.dev. is 2, then the upper band […]