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price channel(PC)

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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...
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Mass Index

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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...
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Force Index

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Force index indicator was created by Alexander Elder. Force index indicator is an oscillator indicator that measures the power of bull whenever the market incline and the power of bear whenever the market decline. Force index indicator is based on three key components,that is; -Direction of price change -The extent of price change -And the trading volume Force index indicator is best approximated with the help of moving average Force index indicator is calculated using the following ; -By subtracting yesterday close by today's close and then multiplying the result by today's volume.This is as follows FORCE INDEX= V|*(CCURRENT-CPREVIOUS) where as; V is volume,C is closing price ,current is today's close and previous is yesterday's close. If closing price are higher today than yesterday then the force is positive while if closing price are lower today than yesterday then the force is negative. Force index indicator has an oscillator at point 0.0 in which w...
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