Indicators and Oscilliators

July 9

Indicators aim at measuring the price movements, trends, stock price instability and momentum. They represent the calculation of the price and the volume. There are many types of indicators and they are mainly used to confirm price movements and chart patterns and provide buying and selling signals. The basic function of indicators is to warn, to verify and to forecast.

There are leading and lagging indicators, where the leading one is preceding the price movement and hence making them predictable, and the lagging is the indicator is used as a confirmation tool as it keeps after the price movement.  

To tell you more, there are types of indicators constructions, dividing indicators to the ones that are in a bounded range and others that are out of that range. Those indicators that are in a range are called oscillators; they range from 0 to 100 and can identify signs of overbought and oversold conditions from 100 and down to zero. Those indicators that are out of the bounded range can also provide buying or selling signals, they also identify trend weakness or strength.

For identification of buying and selling signals by indicators traders mainly use crossovers or divergence. Crossovers are seen when the price moves through the moving average, or when various moving averages meet each other. Divergences are seen when the price trend and indicators trend move in opposite directions.

For the purposes of trends or buying and selling signals identifications most traders apply the indicators not solely but in common with other indicators.

Below is the list of several indicators.

Volume indicators- helping traders to verify the power of trend: Volume Oscillator, On Balance Volume, Chaikin Oscillator,  Money Flow Index

Momentum indicators- helping to find out the speed at which the price is changing: Accumulation/Distribution,  Money Flow Index,  On Balance Volume

Oscillators:  Average True Range,  Chaikin Oscillator,  Elder-Rays, Ichimoku Kinko Hyo,  Moving Average Convergence/Divergence (MACD),  Moving Average of Oscillator,  Price Rate of Change, Relative Strength Index, Relative Vigor Index,  Stochastic Oscillator,  Ultimate Oscillator, Williams Percent Range

Trend Indicators: Average Directional Movement Index, Commodity Channel Index (CCI);  Moving Average Convergence/Divergence (MACD);  Moving Average;  TRIX indicator;  Hindenburg Omen

Most of this indicators you can find here by clicking on indicator's button and choosing the one from drop down menu. 

Idea, Design &; Development by gglaboratories.
© Copyright ggfinances 2013. All Rights Reserved.