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Keltner channel is a trend following indicator. Being a trend following indicator,Keltner channel indicator was created by Chester .W. Keltner with the main objective of helping traders to know whether the market is trending upwards or in a downward direction.Just like in other trend following indicators,keltner channel is based on support and resistance.Keltner channel is further considered to be similar to bollinger band and donchian channels on the fact that it is also used to identify the volatility of the market. Just like in bollinger band, keltner channel also has 3 bands, the upper band, the middle band and the lower band.The upper band represent the highest high while the lower band represent the lowest low. According to Chester Keltner,its value is derived using the average true range as follows; upper keltner channel = n-period exponential moving average + average true range multipliers lower keltner channel= n-period exponential moving average- average true range m...

Moving Average channel was created by Jake Bernstein. Just like other moving average indicator, moving average channel is also a trend following indicator.The only different that it has with other moving average is that it has an upper and lower boundaries.The upper boundary has a period of 10 while the lower boundary has a period of 8. The upper boundary is normally indicated green/blue in color while the lower boundary is normally indicated red in color. Moving average channel is based on bullish and bearish. Since moving average channel is a trend following indicator, it is therefore used to enable the trader to know whether the market is moving upwards or downwards. Therefore, since moving average channel has tow boundaries,the formula for each boundary will be as follows; Upper channel = (average price + no of standard dev for upper channel*standard dev of last period) lower channel = ( average price + no of standard dev for lower channel*standard dev of last perio d) ...

Linear regression curve is a trend following indicator. Being a trend following indicator,Linear regression curve was created to enable traders know whether the market  is in an uptrend or a downtrend. Just like other trend following indicator,Linear regression curve is also based on support and resistance. Linear regression curve is derived based on linear regression line equation .The equation will produce a straight line when fitted with various prices over a given period. Therefore,the values of linear regression curve which follows the linear equation rule is calculated as follows; y= a +bx where as y is price x is period  b is constant Since linear regression curve is a trend following indicator,it therefore follows that when the market is moving upwards, the linear regression curve will also be moving upwards while when the market is moving downwards the linear regression curve will also be trending downwards. Based on support and resistance, when th...

Least square moving average is also called linear regression moving average. Least square moving average is a trend following indicator. Just like in other moving average indicators, least square moving average is also used to indicate the direction of the market, that is whether the market is trending upwards or downwards. Least square moving average is based on bullish and bearish market as well as support and resistance. Least square moving average is therefore calculated using the following formula; LSMA= h*t+b  where as h={(n Σt i x i ) -  ( Σt i Σx i )}/{(n Σt i ) - ( Σt i Σt i )} b=1/n Σx i -h*1/n Σt i while t is the time and n is the period Since least square moving average is a trend following indicator and is based on bullish and bearish, it therefore follows that when the market is in an uptrend movement,the least square moving average will also be moving upwards while when the market is in a downward trend, the least square moving average will...

Arnaud Legoux Moving Average was created by Arnaud Legoux and Dimitris Kouzis Loukas. ALMA uses the gauss normal distribution curve. Arnaud Legoux Moving Average was created to remove small price fluctuation in order to enhance the trend mostly by applying moving average twice,that is, one from left to right and another one from right to left.This was to ensure that the movement is smoothness and more responsiveness. Just like other moving average indicators, Arnaud Legoux Moving Average is also a trend following indicator. Arnaud Legoux Moving  Average is based on support and resistance as well as bullish and bearish. Since Arnaud Legoux Moving Average is a trend following indicator,it therefore follows that when the market is trending upwards, the Arnaud Legoux Moving Average will also be trending upwards while when the market is trending downwards, the Arnaud Legoux Moving Average will also be trading downwards. Based on support and resistance, when the price rises ...

Hull Moving Average indicator was created by Alan Hull. Hull Moving Average indicator was created with the main objective of eliminating lag thus ensuring smoothness curve movement. Hull Moving Average is a lagging trend following indicator. Since Hull Moving Average is a trend following indicator, it therefore follows that it is used to enable trader to know the direction of the market, that is whether the market is moving upwards or moving downwards. Hull Moving Average is based on support and resistance as well as bullish and bearish. Hull Moving average indicator is therefore calculated using the following formula; Hull Moving average = integer(squareroot(period) ) WMA{2* integer(period/2)WMA(price)-period WMA(PRICE)} Since Hull moving average is a lagging trend following indicator it therefore follows that when the hull moving average indicator is moving upwards,the market will also be trending upwards while when the hull moving average indicator is trending downwards...

Moving Average exponential is a type of moving average. Moving Average exponential is a trend following indicator. Since Moving Average exponential is a trend following indicator, it is therefore used to indicate the direction of the market, that is whether the market is moving upwards or downwards. Moving Average Exponential is based on bullish and bearish as well as support and resistance. Just like in weight moving average,moving average exponential also places more weight on recent price than on previous price. Therefore,Moving average exponential is calculated using the following formula; EMA= (Current price*Z)+(previous EMA*(1-Z) Where Z is the smoothing constant % for price value calculated as 2/(n+1) where n is the number of periods. Therefore, since moving average exponential is a trend following indicator and is based on bullish and bearish ,it therefore follows that when the market is in an upward trend,the moving average exponential will also be moving up...

McGinley Dynamic indicator was created by John McGinley . McGinley Dynamic indicator is a trend following indicator. McGinley Dynamic indicator was created with the main aim of solving the inherent problem of all moving average since it is a smooth mechanism indicator for prices .Therefore it is able to follow the market closely than any other moving average indicator. Just like in all moving average indicator, McGinley Dynamic indicator is also used to indicate the direction of the market. McGinley Dynamic indicator is therefore based on bullish and bearish as well as support and resistance. McGinley Dynamic is therefore calculated using the following formula; MD= MD -1 +(Price-MD -1 )/(n*(price/MD -1 )^ 4 Where as; MD is the curent McGinley Dynamic value; MD -1  is the previous McGinley Dynamic Value; price is the price of the asset/security. While n is the smoothing moving average.  Since McGinley Dynamic indicator is a trend following ind...

Moving average weight is a trend  following indicator. Since moving average weight is a trend following indicator, it is therefore used to indicate the direction of the market, that is whether the market is trending upwards or downwards. Moving average weight normally places more weight on recent price and less weight on previous price. Moving average weight is considered to be more significance than simple moving average since it follows direction of the market more closely as compared to simple moving average. Moving average weight is based on bullish and bearish market as well as support and resistance Moving average weight normally gives the weight average of the last price with a decreasing order thus the formula is derived as follows; Let say that the last weight average price  is n, then we will have moving average weigh t = (P1*n)+(P2* n-1)+(P3* n-2)+(P4* n-3)/ { (n)+(n-1)+(n-2)+(n-3) } where P is the price and n is the weight average price. Therefor...

Supertrend indicator was created by Olivier Seban. SuperTrend is a trend following indicator. Supertrend indicator is used to indicate the direction of the movement of the market, that is whether the market is in an upward direction or in a downward direction. Supertrend is based on previous high and previous low.This will help the trader to know the direction of the market Supertrend indicator has red and blue lines.Blue line indicates the upward market direction while red line indicates the downward market direction Supertrend indicator is based on ATR  of the upper and lower supertrend with a multiplier and therefore is calculated using the following formula; upper supertrend= (high+low)/2+(multiplier*ATR) lower supertrend=(high+low)/2-(multiplier*ATR) Since supertrend indicator is based on previous low and previous high, it therefore follows that when the supertrend indicator rises above the previous high price,the supertrend will turn red thus an indication that...

Donchian channels was created by Richard  Donchian. Donchian channels is a trend following  indicator that is used to identify the volatility of the market. Just like in bollinger band,donchian channels also has 3 bands, the upper band, the lower band and the middle band.The upper band represents the highest high price over a given n period while the lower band represents the lowest low price over a given n period.The middle band represents the average of the upper and lower band and is used to identify the price breakout. Donchian channels is therefore calculated using the following formula; middle band=(upper band + lower band)/2 upper band= highest high over a given n period lower band = lowest low over a given n period Since donchian channel is a trend following indicator and it has 3 bands, upper band, middle band and lower band, it therefore follows that when the price rises above the upper band that will be an indication of an upward market movement thu...

MA cross is a trading indicator that is used to filter out noise from the price chart. MA cross can also be used by a trader to know the direction in which the price is moving. MA cross indicator is a trend indicator. MA cross is based on the crossover. Based on the crossover, MA cross has two moving average, the shorter term moving average and the longer term moving average. The shorter-term moving average is normally red in color and it represents the price while the longer term moving average is normally blue in color and it represents the moving average. Therefore, since MA cross is based on the crossover, it, therefore, follows that when the short term moving average crosses above the long-term moving average that will be an indication of an upward market movement thus the trader should be trading upwards. On the other hand, when the short term moving average crosses below the long-term moving average that will be an indication of a downward market thus the trader should b...

Detrend price oscillator is a trading indicator that is used to remove the long term trends thus focusing on price movement by using a displaced simple moving average thus allowing an individual to know the overbought or oversold market condition. By using a displaced moving average, detrend price oscillator will be considered to be an oscillator with an oscillation at point 0.00. Detrend price oscillator is based on the centerline as well as divergence. Detrend price  oscillation is therefore calculated using the following formula; Detrend price oscillator= closing price -SMA of { (n/2)+1 } Since Detrend price oscillator is based on the centerline, it, therefore, follows that when the detrend price oscillator crosses above 0.00, that will be an indication of an upward market movement thus the trader should be trading upwards while when the detrend price oscillator crosses below 0.00, that will be an indication of a downward market movement thus the trader should be tra...

Mass index is a volume based volatility indicator. Being a volume based volatility indicator,Mass index indicator was created by Donald Dorsey with the main objective of helping traders to know whether the market is about to experience a trend reversal thus is being considered to follow the concept of divergence. Mass index also normally uses 25 period. According to Donald Dorsey, the values of Mass index indicator is therefore calculated using the following formula; Mass index= [ 25-period+ n-period EMA(high-low)/ { n-period EMA( n-period EMA(high-low) } ] Therefore,since mass index is based on divergence ,it therefore follows that when the mass index indicator is moving upwards while the market is moving downwards,the market will reverse and start moving in the same direction upwards as the mass index.On the other hand,when the mass index is moving downwards while the market is moving upwards,the market will reverse and start moving in the same direction downwards as the mas...

Price channel indicator was created by Ralph Nelson Eliot . Price channel are trading indicator with two line,the upper price channel and the lower price channel .Between the two is a green line that separate them and this represent the price oscillation. The lower price channel normally represent support while the upper price channel represent resistance in the market. The price channel is based on oversold and overbought in the market.The price channel is also used to indicate the direction of the market. The upper price channel is the highest high over a given set period while the lower price channel is the lowest low over a given set period. The price channel has a period of 20. Price channel is based on Exponential Moving Average(EMA) and therefore is calculated as follows; Price channel upper= EMA(1 + upper price channel% / 100) price channel lower= EMA(1+lower price channel% / 100) Since the price channel is used to indicate the direction of the market,it th...

The price oscillator is used to measure the momentum based on two moving average,the "fast" and the "slow" moving average thus considered to be the same as MACD. price oscillator  is also called percentage price oscillator(PPO). Price oscillator is an oscillator and therefore has an oscillation at point 0.00. Price oscillator is based on centerline and divergence. Since price oscillator is considered to be the same as MACD and is based on two moving average,it therefore follows that the difference between the two moving average divided by the slow moving average multiplied by 100 will give the price oscillator formula as follows; PPO(Price oscillator)= { (Fast moving average-slow moving average)/slow moving average }* 100 Since price oscillator is based on centerline and it has an oscillation at point 0.00,it therefore follows that when the price oscillator curve rises above 0,that will be an indication of an upwards market thus the trading should be tra...

Fisher transform indicator was created by John  Ehlers. Fisher transform is used to transform time series data into a Gaussian Normal distribution function. Therefore in trading,fisher transform can be considered to be an indicator that is used to transform the price of any foreign exchange rate,price of securities ,price of commodities and price of stocks into a Gaussian Normal distribution . Fisher transform is an oscillator and therefore has oscillation at point 0.000 ranging from -1 to 1. Fisher transform is based on crossover.It therefore has two crossover lines,the fisher transform line which is blue in color and the signal line. Fisher transform is therefore calculated using the following formula; Fisher transform= 1/2*natural logarithm { (1+x)/(1-x) } NB; x is the transformation of price between the range of -1 to 1 Since fisher transform is based on crossover and has two crossover lines,the fisher transform which is blue in color and the signal line which i...

Advance decline line is a breadth indicator that is used to show the comparison between the advancing and declining of securities/stocks over a given period of time. Advance decline line indicator is based on divergence. When more stocks are advancing than declining,that will be an indication of a positive breadth thus the market will be considered to be in a bullish condition while when less stocks are advancing than declining,that will be an indication of a negative breadth thus the market will be considered to be in a bearish condition. Advance/decline line is therefore calculated using the following formula; AD line= (Number of advancing issues- Number of declining issues)+ previous value of AD line Since advance decline line is based on divergence,it therefore follows that when the market is trending upwards while the Advance decline line is moving downwards,the market will reverse and start moving in the same direction downwards as the advance decline line. On the o...

price volume trend indicator is used to measure momentum as well as buying and selling preasure. Price volume trend indicator is considered to be the same as on balance volume. despite the Price volume trend(PVT) and on balance volume(OBV) considered to be the same,they differ on the fact that in  on balance volume you only add or subtract the total daily volume while in price volume trend(PVT), it only adds a portion of the volume multiplied by the percentage change of the close price divide by the previous close. Price volume trend is therefore based on divergence. Price volume trend is therefore calculated using the following formula; Price volume trend(PVT)= [ { (Current close - previous close)/previous close } *100 ] + previous Price volume trend(PVT) Since price volume trend is based on divergence,it therefore follows that when the price is uptrending while the price volume trend is moving downwards,the price will reverse and start moving in the same direction ...

Choppiness index indicator was created by Bill Dreiss who was an Austrarian commodity trader. Choppiness index is an indicator that is used to show whether the market is trending or ranging. Choppiness index has a default period of 14. Choppiness index ranges between 0 to 100 thus is considered to be similar to fibonacci range numbers.The similarity comes about for using two fibonacci ranges numbers of 38.2 and 61.8 to indicate whether the market is trending or consolidating.To consolidate means the market is neither moving upwards or downwards(it is moving in a sideways maner or in a choppiness manner). Choppiness index is therefore calculated as follows; Choppiness index= 100* log10  {sum (average true range,n) /( max high(n)-min low(n) }/(log10 ( n ) ) Since choppiness index is based on fibonacci range numbers of 38.2 and 61.8   it therefore follows that when the choppines index has a value below 38.2,that will be an indication of a trending market patt...

Klinger oscillator was created by Stephen Klinger. Klinger oscillator indicator is used to measure the trend of the flow of money in and out of security which is based on volume. Klinger oscillation is a volume based oscillator and therefore has an oscillation at point 0. Klinger oscillator works on the basis of crossover and divergence as well as centerline. Klinger oscillator has two crossover lines,The klinger oscillator(KO) mostly indicated by the blue line and the signal line mostly indicated by the green line. Klinger oscillator is based on high price,low price ,close price and volume.When these four are being combined,they will form what is called the volume force(VF).The volume force will then become an oscillator when the fast EMA of volume force is subtracted to the slow EMA of volume force. Klinger oscillator is therefore based on two time periods,34 period (FAST EMA)and 55 period(SLOW EMA) Klinger oscillator is therefore calculated using the following formula; ...