Technical Indicators

Average true range (ATR) A measure of volatility introduced by Welles Wilder in his book: "New Concepts in Technical Trading Systems." Wilder originally developed the ATR for commodities but the indicator can also be used for Forex. Simply put, a currency experiencing a high level of volatility will have a higher.
BOLLINGER BAND Developed by John Bollinger, Bollinger Bands are charted by calculating a simple moving average of price, then creating two bands a specified number of standard deviations above and below the moving average. You can draw the simple moving average analysis on the same chart as the Bollinger Bands analysis, using the same interval. In addition, Bollinger Bands are usually plotted with a bar analysis so that the proximity of the bands to the prices can be easily observed.

(CCI)Commodity Channel Index Commodity Channel Index (CCI) was originated by Donald Lambert in 1980. It is based on the assumption that a perfectly cyclical commodity price approximates a sine wave. Designed to be used with instruments, which have seasonal or cyclical tendencies, Commodity Channel Index is not used to calculate cycle lengths but rather to indicate that a cycle trend is beginning.
Linear Regression Linear regression is a statistical tool used to measure trends. Linear regression uses the least squares method to plot the line. The linear regression line is a straight line extending through the prices.
(MACD)Moving Average Convergence Divergence Moving Average Convergence Divergence or MACD as it is more commonly known, was developed by Gerald Appel to trade 26 and 12-week cycles in the stock market. MACD is a type of oscillator that can measure market momentum as well as follow or indicate the trend.
Momentum Momentum is an oscillator that measures the rate at which prices are changing over the Observation Period. It measures whether prices are rising or falling at an increasing or decreasing rate. The Momentum calculation subtracts the current price from the price a set number of periods ago. This positive or negative difference is plotted about a zero line.
MOVING AVERAGE A Moving Average is a moving mean of data. In other words, Moving Averages perform a mathematical function where data within a selected period is averaged and the average 'moves' as new data is included in the calculation while older data is removed or lessened. Moving Averages essentially smooth data by removing 'noise'. This smoothing of data makes Moving Averages popular tools in identifying price trends and trend reversals.
PARABOLIC TIME PRICE(SAR) Parabolic Time Price is a system that always has a position in the market, either long or short. You would close out the current position and enter a reverse position when the price crosses the current Stop And Reverse (SAR) point. The SAR points resemble a parabolic curve as they begin to tighten and close in on prices once prices begin to trend. This explains the name - Parabolic Time Price.
(ROC)Rate of Change Rate of Change is an oscillator that measures how fast the momentum of the market is changing over the Observation Period. Rate of Change is very similar to Momentum in that it compares the current price with the price a specified number of periods ago, however Rate of Change is calculated differently. Where Momentum subtracts the current price from the price a specified number of periods ago, Rate of Change divides the current price by the price a specified number of periods ago and then multiplies the result by 100
(RSI)Relative Strength Index Developed by J. Welles Wilder and introduced in his book New Concepts in Technical Trading Systems. RSI calculates the difference in values between the closes over the Observation Period. These values are averaged, with an up average being calculated for periods with higher closes and a down-average being calculated for periods with lower closes. The up average is divided by the down average to create the Relative Strength. Finally, the Relative Strength is put into the Relative Strength Index formula to produce an oscillator that fluctuates between 0 and 100.
Slow Stochastic Stochastics are an oscillator developed by George Lane and are based on the following observation: As prices increase - closing prices tend to be closer to the upper end of the price range. As prices decrease - closing prices tend to be closer to the lower end of the price range. Slow Stochastics are based on Fast Stochastics but provide a slower, smoother response to price movements. Slow Stochastic consist of two lines, %K and %D: - The %K line in Slow Stochastic is the same as the %D line in Fast Stochastic. - The %D line in Slow Stochastic is a Simple Moving Average of %K Slow Stochastic. This line is smoother than the %K and provides the signals for an overbought / oversold market.
Standard Deviation A measure of dispersion of a set of data from their mean. The more spread apart the data is, the higher the "deviation". In statistics is can also be calculated as the square root of the variance A. Volatile price would have a high standard deviation. In mutual funds, the standard deviation tells us how much the return on the fund is "deviating" from the expected normal returns.
STOCHASTICA Stochastics are an oscillator developed by George Lane and are based on the following observation: As prices increase - closing prices tend to be closer to the upper end of the price range. As prices decrease - closing prices tend to be closer to the lower end of the price range.