Indicators & Oscillators
4 terms
Death Cross
Indicators & Oscillators
qualitative
The crossing of a shorter moving average below a longer one, conventionally the 50-day below the 200-day.
Test: 50-period Moving Average crosses from above to below the 200-period Moving Average
Directional Movement Index
Indicators & Oscillators
ratio (x, times)
A pair of lines measuring upward and downward directional movement separately, from which the ADX is derived.
+DM = Current High - Previous High when positive and larger than -DM; -DM = Previous Low - Current Low when positive and larger than +DM; each is smoothed and divided by ATR to give +DI and -DI
Divergence
Indicators & Oscillators
qualitative
A condition in which price and an indicator derived from it move in opposite directions.
Test: price makes a new extreme while the indicator fails to confirm it with a corresponding new extreme
Donchian Channel
Indicators & Oscillators
₹
Bands drawn at the highest high and lowest low of the last n periods, with a midline between them.
Upper Channel = Highest High over n periods; Lower Channel = Lowest Low over n periods; Middle = average of the two