Posts (page 58)
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8 min readThe Arms Index, also known as the TRading INdex (TRIN), is a technical indicator that is widely used in swing trading. It was developed by Richard Arms in the 1960s and is designed to measure the overall market sentiment or breadth.Swing trading is a trading strategy that aims to capture short-term price movements within a stock or any financial instrument. Traders who use this strategy rely on technical analysis tools, such as the Arms Index, to make informed trading decisions.
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6 min readThe Triangular Moving Average (TMA) is a technical indicator used in financial markets analysis. It is a type of moving average that smoothes out price data, thereby making it easier to identify trends and potential reversal points.The TMA is created by taking the average of the prices over a specified period, but it differs from other moving averages as it places more weight on recent prices.
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10 min readThe Triple Exponential Average (TRIX) is a technical analysis indicator that measures the rate of change and smoothens out price data. It was developed by Jack Hutson in the 1980s and aims to identify trends, reversals, and generate buy/sell signals.TRIX is calculated using triple smoothing of the price data. It starts by calculating a single Exponential Moving Average (EMA) of the closing prices over a given period.
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11 min readFibonacci retracements are frequently used by swing traders to identify potential levels of support and resistance for initiating trades. The Fibonacci sequence, which goes like this: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on, forms the basis of this technique.To trade with Fibonacci retracements for swing trading, you start by identifying a swing high and swing low on a price chart. A swing high is a peak in price, while a swing low is a trough.
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7 min readThe Elder-Ray Index is a technical analysis tool used in swing trading. It was developed by Dr. Alexander Elder as an extension of his other trading indicators. The Elder-Ray Index is composed of two separate components: the Bull Power and Bear Power.Bull Power is calculated by subtracting the period's lowest price from the exponential moving average (EMA) of the high prices. It measures the buying pressure in the market and indicates the strength of the bulls in overcoming the bears.
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10 min readParabolic SAR (Stop and Reverse) is a technical indicator used in swing trading to determine potential entry and exit points. Developed by J. Welles Wilder, it aims to help traders identify the direction of a trend and capture profits by trailing stops.The Parabolic SAR indicator consists of dots that appear either above or below the price chart. When the dots are below the price, it suggests an uptrend, and when the dots are above the price, it indicates a downtrend.
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6 min readThe Chaikin Oscillator is a technical indicator commonly used in day trading to assess the momentum of a stock or a market index. Developed by Marc Chaikin, this oscillator combines both price and volume data to provide insights into the buying and selling pressure of a security.The Chaikin Oscillator is calculated by taking the difference between the 3-day exponential moving average (EMA) of the Accumulation/Distribution Line (ADL) and the 10-day EMA of the ADL.
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12 min readThe Triple Exponential Average (TRIX) is a technical analysis indicator that helps traders identify the trend and potential reversal points in the stock market. It is specifically designed for day trading, providing insight into short-term price movements.Unlike simple moving averages or exponential moving averages, which consider the closing prices only, TRIX takes into account the triple-smoothed exponential moving average (EMA) of a security's price.
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9 min readMoving Average Convergence Divergence (MACD) is a popular technical indicator used by traders, including scalpers, to identify potential buy and sell signals in the market. It consists of two lines - the MACD line and the signal line.The MACD line is calculated by subtracting the 26-day Exponential Moving Average (EMA) from the 12-day EMA. It represents the difference between these two moving averages. The signal line is a 9-day EMA of the MACD line.
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9 min readThe Chandelier Exit is a popular technical indicator used in trading to determine an appropriate exit point for a trade. It was developed by Charles Le Beau and it aims to protect profits by providing a trailing stop loss level that adjusts dynamically according to the market conditions.The indicator gets its name from the idea that the exit level hangs down like a chandelier from the highest high reached during a trade.
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8 min readRate of Change (ROC) is a technical indicator used in trading and investing to measure the speed at which a financial asset's price is changing. It quantifies the percentage change in price over a specified period. ROC is particularly popular among scalpers, who aim to make quick trades and take advantage of short-term price movements.
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8 min readThe Percentage Price Oscillator (PPO) is a technical indicator that measures the percentage difference between two moving averages. It is a variation of the popular MACD (Moving Average Convergence Divergence) indicator, but instead of using absolute values, the PPO calculates the percentage difference between the two moving averages.When it comes to scalping, the PPO can be used as a reliable tool to identify short-term trends in the market.