Home Wikituition Browse all terms Categories
Random term

Indicators & Oscillators

60 terms · page 1 of 3


A–Z
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Filtering by: Indicators & Oscillators Clear all
Indicators & Oscillators

Accumulation/Distribution Line

A running total of volume weighted by where each period's close sat within its own range.

Money Flow Multiplier = ((Close - Low) - (High - Close)) / (High - Low); A/D = Previous A/D + Multiplier x Volume shares
Indicators & Oscillators

Advance-Decline Line

A running total of the number of advancing securities minus the number of declining securities each period.

A/D Line = Previous Value + (Number of Advancing Securities - Number of Declining Securities) ratio (x, times)
Indicators & Oscillators

Anchored VWAP

A volume-weighted average price calculated from a chosen starting point rather than from the beginning of the session.

Anchored VWAP = Sum of (Price x Volume) from the anchor date / Sum of Volume from the anchor date
Indicators & Oscillators

Aroon Indicator

A pair of lines measuring how recently the highest high and lowest low occurred within a lookback window.

Aroon Up = ((n - periods since n-period High) / n) x 100; Aroon Down = ((n - periods since n-period Low) / n) x 100 %
Indicators & Oscillators

Average Directional Index

An indicator measuring the strength of a directional move on a scale of 0 to 100, without indicating its direction.

ADX = smoothed average of |+DI - -DI| / (+DI + -DI) x 100 ratio (x, times)
Indicators & Oscillators

Average True Range

The average of the true range over n periods, measuring how much a security typically moves in a period.

True Range = the greatest of (High - Low), |High - Previous Close| and |Low - Previous Close|; ATR = smoothed average of True Range over n periods
Indicators & Oscillators

Backtesting

Applying a set of trading rules to historical data to see how they would have performed.

Test: rules are fully specified in advance, applied without hindsight, and results are net of realistic transaction costs and slippage qualitative
Indicators & Oscillators

Bearish Divergence

A condition in which price makes a higher high while an oscillator makes a lower high.

Test: current price high > previous price high, while current indicator high < previous indicator high qualitative
Indicators & Oscillators

Bollinger Band Width

The distance between the upper and lower Bollinger Bands, expressed relative to the middle band.

Band Width = (Upper Band - Lower Band) / Middle Band x 100 %
Indicators & Oscillators

Bollinger Bands

A moving average with bands plotted a set number of standard deviations above and below it.

Middle Band = 20-period SMA; Upper Band = Middle + 2 x Standard Deviation; Lower Band = Middle - 2 x Standard Deviation
Indicators & Oscillators

Bullish Divergence

A condition in which price makes a lower low while an oscillator makes a higher low.

Test: current price low < previous price low, while current indicator low > previous indicator low qualitative
Indicators & Oscillators

Chaikin Money Flow

The sum of volume weighted by close position over n periods, divided by total volume over the same periods.

CMF = Sum of (Money Flow Multiplier x Volume) over n / Sum of Volume over n ratio (x, times)
Indicators & Oscillators

Chandelier Exit

A trailing stop placed a multiple of average true range below the highest high since entry.

Long Exit = Highest High over n periods - Multiplier x ATR; Short Exit = Lowest Low over n periods + Multiplier x ATR
Indicators & Oscillators

Commodity Channel Index

An unbounded oscillator measuring how far the typical price sits from its moving average, scaled by mean deviation.

CCI = (Typical Price - SMA of Typical Price) / (0.015 x Mean Deviation), where Typical Price = (High + Low + Close) / 3 ratio (x, times)
Indicators & Oscillators

Curve Fitting

Tuning a strategy's parameters until it fits historical data closely, producing results that do not repeat on new data.

Test: performance degrades sharply when parameters are perturbed slightly or when the rules are applied to unseen data qualitative
Indicators & Oscillators

Death Cross

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 qualitative
Indicators & Oscillators

Directional Movement Index

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 ratio (x, times)
Indicators & Oscillators

Divergence

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 qualitative
Indicators & Oscillators

Donchian Channel

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
Indicators & Oscillators

Envelope Channel

Bands drawn a fixed percentage above and below a moving average.

Upper Envelope = Moving Average x (1 + Percentage); Lower Envelope = Moving Average x (1 - Percentage) %
Indicators & Oscillators

Exponential Moving Average

A moving average that weights recent periods more heavily, with weights decaying geometrically into the past.

EMA = Price x k + Previous EMA x (1 - k), where k = 2 / (n + 1)
Indicators & Oscillators

Golden Cross

The crossing of a shorter moving average above a longer one, conventionally the 50-day above the 200-day.

Test: 50-period Moving Average crosses from below to above the 200-period Moving Average qualitative
Indicators & Oscillators

Ichimoku Cloud

A multi-line system plotting conversion and base lines, a shaded cloud projected forward, and a lagging span behind price.

Conversion Line = (9-period High + Low) / 2; Base Line = (26-period High + Low) / 2; Leading Span A = average of those two, plotted 26 periods ahead; Leading Span B = (52-period High + Low) / 2, plotted 26 periods ahead
Indicators & Oscillators

Indicator Lag

The delay between a change in price and the corresponding change in an indicator derived from it.

Approximate lag of a simple moving average = (n - 1) / 2 periods, where n is the lookback days