Today, there are so many indicators used in technical analysis, but only a few are really valuable to retail investors and traders. These indicators are not just used for technical analysis of stock prices but are also used to get an idea of the sentiment in the equity market, helping you determine the number of…
In trading, divergence means that the price swings and the indicator movement are not in phase. A divergence signal is generated when the price is making a higher swing high but the indicator is making a lower high, or the price is making a lower swing low when the indicator is making a higher swing…
Technical indicators help us analyze stocks to know how to trade them, but they focus on the external price action of individual stocks. While this is not bad in itself, knowing the general market sentiment is equally important. This is where the Arms Index comes in. But what is the index about? The Arms index…
Rolling returns for the S&P 500 are important to understand. Not only for S&P 500 but rolling returns are essential for any investment you make. What are rolling returns and how do you calculate them? What have been the rolling returns for S&P 500? Rolling returns are returns annualized (or any time frame you prefer)…
Market indicators are an integral component of technical analysis. They help traders in making market decisions. Some indicators are designed to show the direction of a trend while others simply tell when a trend reversal is imminent. In this article, we look at one of the many trading indicators: the Aroon indicator. The Aroon indicator…
The DMI trading strategy is often known on most trading platforms by its third component, the average directional index (ADX). Not many know what the DMI is. Let’s take a look at it. The DMI (directional movement index) is a trend indicator that shows the strength of a trend, irrespective of the direction. It has…
Technical indicators offer powerful insights into what is happening in the market. While price is a factor in technical analysis, volume is as important as price as this tells traders the level of activity on a given security. The On-Balance Volume Trading Strategy is one of the most popular volume indicators. Let’s find out what…
It seems that traders are becoming increasingly interested in the classical methods of technical analysis, and the use of trading channels have become popular again in the 21st century. Since Williams Volatility Channel is getting very popular among traders, you may be wondering what it is. Williams Volatility Channel is a trend-following indicator developed by…
Which is the best indicator for swing trading? There are many indicators to choose from, but in this article, we will try to answer which indicators that are best for this type of trading. There are many bells and whistles on the trading platforms, but we conclude that some indicators are much better than others….
The NAAIM Exposure Index is becoming a popular indicator for tracking investor sentiment. But what is it about? Compiled by the National Association of Active Investment Managers (NAAIM), the NAAIM Exposure Index represents the average exposure to US Equity markets reported by its members. The indicator line is a two-week moving average of the NAAIM…
