Indicators & Oscillators
7 terms
Signal Line
Indicators & Oscillators
qualitative
A moving average of an indicator's own values, plotted alongside it to mark where the indicator turns relative to its own trend.
Signal Line = Moving Average of the Indicator's values over a stated period
Simple Moving Average
Indicators & Oscillators
₹
A moving average that weights every period in the window equally.
SMA = (P1 + P2 + ... + Pn) / n
Smoothing Period
Indicators & Oscillators
days
The number of periods an indicator averages over, controlling how much noise it removes and how much it lags.
Test: increasing the smoothing period reduces the variance of the indicator's output and increases its lag
Stochastic Oscillator
Indicators & Oscillators
%
An oscillator showing where the current close sits within the high-low range of the last n periods.
%K = (Close - Lowest Low over n) / (Highest High over n - Lowest Low over n) x 100; %D = 3-period moving average of %K
Stochastic RSI
Indicators & Oscillators
ratio (x, times)
The stochastic formula applied to RSI values rather than to price, showing where RSI sits within its own recent range.
StochRSI = (Current RSI - Lowest RSI over n) / (Highest RSI over n - Lowest RSI over n)
Supertrend
Indicators & Oscillators
₹
A trailing band plotted at a multiple of average true range from the midpoint of price, flipping sides when price crosses it.
Upper Band = (High + Low) / 2 + Multiplier x ATR; Lower Band = (High + Low) / 2 - Multiplier x ATR
Swing High and Swing Low
Indicators & Oscillators
₹
A local peak or trough defined by a stated number of lower highs or higher lows on either side of it.
Swing High: a high greater than the n highs before it and the n highs after it; Swing Low: the mirror condition