Commodity Channel Index (CCI)

Commodity Channel Index (CCI)

The Commodity Channel Index​ (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.

SUPER TREND INDICATOR

The super-trend indicator relies on two fundamental dynamic values- period and multiplier. But before we get into that, it is important to understand the concept of ATR or Average True Range. ATR is yet another indicator that gives you market volatility value by decompressing the range of prices of a security for a particular time.

• A super-trend indicator is plotted on either above or below the closing price to signal a buy or sell. The indicator changes colour, based on whether or not you should be buying.
• If the super-trend indicator moves below the closing price, the indicator turns green, and it signals an entry point or points to buy

Volume-weighted average price (VWAP)

VWAP and MVWAP

Volume-weighted average price (VWAP) and moving volume-weighted average price (MVWAP) are trading tools that can be used by all traders to ensure they are getting the best price. However, these tools are used most frequently by short-term traders and in algorithm-based trading programs.

The VWAP is used as a benchmark to determine the quality of executions in large orders. For example, if a portfolio manager wants to acquire thousands of shares, but also wants to purchase the position below the average price for the day, the VWAP will usually be the price to beat.

Stochastic RSI

What Is the Stochastic RSI?

The Stochastic RSI (StochRSI) is an indicator used in technical analysis that ranges between zero and one (or zero and 100 on some charting platforms) and is created by applying the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than to standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold

Parabolic SAR

#Parabolic SAR is a powerful tool that helps you analyze trends. SAR stands for Stop and Back. This means that the indicator can not only determine the trend, but also signal when it is time to close the trend trade and look in the opposite direction. The indicator was developed by J. Welles Wilder, who is also known for creating tools such as ATR and RSI.

How to interpret a parabolic SAR indicator

• Parabolic is very easy to use. Makes points that determine the trend. When the points are below the price, the trend is bullish, while the points are above the bearish trend.
• When the trend changes direction, the parabolic signal gives an input signal. It signals a bearish turn when it crosses the price upwards and forms 3 descending points above the candlesticks.
• The parabolic signals whip when it crosses the price to the back and forms 3 ascending points below the candles.

Bollinger bands

One of the classic trend indicators is the Bollinger bands (BB) indicator, developed    by John Bollinger. His book Bollinger on Bollinger Bands contains a detailed     description of how to use it on its own as well as with other tools of technical  analysis. BB is very popular among traders all over the world. It is a type of   statistical chart characterizing the prices and volatility over time of a financial     instrument or commodity, using a formulaic method.

How to use Bollinger bands to trade Forex

• The assumption is that the price spends 95% of the time between the outer Bollinger bands and only 5% of the time outside of them.
• Bollinger bands help to determine how big is the deviation from the average price of a currency pair.
• The middle line may be used as a level of support/resistance, while the outer borders can act as profit targets. There are also strategies that suggest reversing trade from outside bands.
• The slope of BB and the position of the price relative to the middle band allow judging the direction of the current trend. It’s an uptrend, if Bollinger bands have an upward bias and the price tends to be above the middle line.
• It’s a downtrend, if the band’s bias is negative and the price spends the majority of time below the middle line.