On-balance volume (OBV) is a technical analysis indicator which is designed to correlate price and volume in the stock market. OBV measures buying and selling pressure as a cumulative indicator that adds volume on up days and subtracts volume on down days. When the security closes higher than the previous close, all of the day’s volume is considered up-volume. When the security closes lower than the previous close, all of the day’s volume is considered down-volume.
Ichimoku Kinko Hyo called Ichimoku is a technical analysis method that builds on candlestick charting to improve the accuracy of forecast price moves. The indicator was developed by Goichi Hosoda, a Japanese journalist. He spent 30 years perfecting the technique before releasing his findings to the general public in the late 1960s. Continue reading
A pivot point is a technical analysis indicator used to determine support and resistance. A pivot point is calculated based on OHLC (Open, High, Low, and Close) Data. Today’s intraday levels are based on previous day’s OHLC data.
Stochastics Oscillator is a momentum oscillator that helps to measure the current price in relation to its price range over a period of time. It functions as an overbought/oversold oscillator. It consists of 2 lines (%K & %D). Continue reading
Fibonacci retracement is a method of technical analysis for determining support and resistance levels. Fibonacci retracement is based on the possibility that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction. The Fibonacci retracements example can be valuable for swing traders to distinguish reversals on a stock chart. They are named after their use of the Fibonacci sequence. Continue reading
Bollinger Bands, a chart indicator invented by John Bollinger in the 1980s, are volatility bands set above and below a moving average. Continue reading
Average Directional Index or ADX is an oscillator that is used to determine the strength of a trend. It is a good indicator that gives a confirmation of trend. Since, trend is an important concept in Technical Analysis, it can be a good indicator in any Technical Analyst’s arsenal. Continue reading
A lot of times we at Investarindia.com get questions like:
1) Which Moving Average parameters should I use to get the best results?
2) What parameter should I use for XYZ indicator. Continue reading