Saturday, September 8, 2012

Indicators i use in ChartNexus

OBV:buying and selling pressure
price move higher if OBV is rising=buy pressure
price move lower if OBV is falling=sell pressure




MFI:uses price and volume to measure buying and selling pressure
below 20 is oversold
above 80 is overbought
above 50 is bull
below 50 is bear

RSI:speed and change of price movement
Overbought above 70
Oversold below 30

stochastic:follows speed and momentum of price
below 20% is oversold
above 80% is overbought

MACD:Moving Average Convergence-Divergence (momentum Indicator)
positive MACD means upside momentum is increasing
negative MACD means downside momentum is increasing

Ichimoku:
Trend is up when price are above cloud
Trend is down when price are below the cloud
Trend is flat when price is below the cloud.
uptrend is strong if SpanA is rising and above the leading spanB(green cloud)
downtrend is strong when SpanA is falling and below the leading spanB(red cloud)

ADX Average directional index:strength and weakness of a trend (not direction)
strong bull if +DI is greater than -DI (buy signal)
strong bear if -DI is greater than +DI
strong trend when ADX is above 25
no trend when ADX is below 20

Chaikin Money Flow (MFI)
above 0 shows buying pressure
below 0 shows selling pressure

Rate of change: price change over time
prices rise when ROC remains positive
price fall when ROC is negative

Price Channels:Show 20 day high and low.
stock is near is highest high for the past 20 days, may go down (oversold)
stock near lowest low of past 20 days may go up (overbought)

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