The Sahm Rule recession indicator helps detect early signs of a recession using changes in the unemployment rate. Created by Claudia Sahm, it offers a timely warning and allows policymakers to respond faster. Unlike traditional measures, it quickly signals potential…
There are many technical indicators and analysis tools traders can use to track how the market is moving, and one that is growing in popularity is the Disparity Index. What do you know about this indicator? The Disparity Index is…
Analysis of the financial markets today has become so much more scientific, as professionals from different fields of science try hard to solve the market puzzle, and this has led to indicators like the Prime Number Bands. What do you…
The financial markets may seem random in the way they move, but with certain technical analysis tools, like the Zigzag Fibonacci, you might find that the movements follow a certain pattern. What do you know about the Zigzag Fibonacci? In…
Analyzing price movements to find trading opportunities can be a daunting task, even for an experienced trader, but one tool that can help is the Time Segmented Volume (TSV). What do you know about this indicator? The Time Segmented Volume…
The Investors Intelligence Index is becoming widely accepted as a means of estimating the balance between the bulls and bears. But what does it actually mean? Also known as the Advisor Sentiment, Investors Intelligence Sentiment Index is based on contrarian…
The DMI trading strategy is often known on most trading platforms by its third component, the average directional index (ADX). Not many know what the DMI is. Let’s take a look at it. The DMI (directional movement index) is a…
What is in Bill Williams Awesome indicator strategy? Williams stated in his book, “It is, without doubt, the best momentum indicator available in the stock and commodity markets. It is as simple as it is elegant.” That’s a bold statement….
It seems that traders are becoming increasingly interested in the classical methods of technical analysis, and trading channels have become popular again in the 21st century. Since Williams Volatility Channel is getting very popular among traders, you may wonder what…
Is it possible to use the ADX indicator (Average Directional Movement Index) (DMI) to find a profitable ADX trading strategy? This article looks at the ADX indicator where we make some historical backtest to evaluate and analyze. The adx indicator…
Out of the hundreds or thousands of technical indicators and oscillators that exist, the Klinger oscillator indicator is not one that comes to mind first. However, because it is not well known doesn’t mean it doesn’t work or that we…
The standard deviation indicator in trading is a tool to quantify uncertainty, providing an understanding of the volatility of asset prices or a particular investment or trading strategy. Instead of leaving you guessing, it directly measures how widely prices fluctuate…
Today, there are so many indicators used in technical analysis, but only a few are really valuable to retail investors and traders. These indicators are not just used for technical analysis of stock prices but are also used to get…
Market indicators are an integral component of technical analysis. They help traders in making market decisions. Some indicators are designed to show the direction of a trend while others simply tell when a trend reversal is imminent. In this article,…
Introduction: Understanding Dumb Money in Trading The term “dumb money” in Dumb Money trading strategy refers to a group of investors who are considered to be less sophisticated or experienced than other participants in the market. These investors may make…
RSI is mostly used as a reversal or contrarian indicator. In most stock markets, this has worked really well over the last 30 years. But what if we flip it and use it as a momentum indicator instead to make…
The Conference Board Leading Economic Index (LEI) is a predictive variable that anticipates turning points in the business cycle. It is designed to signal peaks and troughs in the economy, typically by around 7 months for the U.S. and 3…
Many patterns or models try to predict what the performance of the market may be in any given year. For example, the January effect, presidential cycles, valuation models, etc. Today we will look at one that many traders do not…
The Relative Strength Indicator, abbreviated RSI, is probably the most popular trading indicator. It’s mentioned in almost endless posts and articles on the internet. To our knowledge, the standard default setting of 14 days is mostly used. But does the…
Zweig Breadth Thrust Indicator is a market breadth indicator that helps you understand the internal strength of the market, at least that’s what the theory says. There are many breadth indicators – among them the Zweig Breadth Thrust Indicator (one…
Most of the technical indicators that traders use nowadays we developed back in the 70, ’80s, and ’90s. However, the indicator we are going to introduce to you today was created not so long ago, in 2010. It’s called the…
We rank Williams %R as the best oscillating indicator for trading strategies. It’s certainly not the most known nor the most used, but in our humble opinion, our backtests proved Williams %R to be the most stable indicator for almost…
Trading indicators generally work best when combined rather than being used individually. However, in this case, we will introduce an indicator designed to function as a comprehensive trading system on its own: Traders Dynamic Index trading strategy. The Traders Dynamic…
A reader recently asked if we use Heikin Ashi Candlestick in our trading. So what exactly is Heikin Ashi? In this article, we will reconsider the price representation called Heikin-Ashi, and try to get something good out of the charting…
Cryptocurrency trading has become increasingly popular in recent years, and Bitcoin, as the pioneer and most widely recognized digital currency, is at the forefront of this seemingly financial revolution. Traders are constantly seeking strategies to capitalize on the volatility of…
Volume indicators in trading are tools used by traders and analysts to assess the trading activity or volume of a financial instrument, such as stocks, commodities, or cryptocurrencies. These indicators help traders gain insights into the strength or weakness of…
What are leading and lagging indicators, and how do they shape business and trading decisions? Leading indicators signal future trends and changes, allowing for proactive responses. Lagging indicators retrospectively measure effectiveness and success. This guide details their characteristics, functions, and…
The CCI (Commodity Channel Index) is a technical indicator that measures the current price level of a security relative to an average price level over a given period. It is a momentum oscillator that is used to identify extreme conditions,…
There are many momentum and trend indicators out there, but the Qstick indicator is not one that shows up very often. What is the Qstick indicator? The Qstick indicator is a technical indicator that consists of two moving averages and…
Technical indicators offer powerful insights into what is happening in the market. While price is a factor in technical analysis, volume is as important as price as this tells traders the level of activity on a given security. The On-Balance…
The Put-Call ratio is a popular sentiment indicator. Extreme readings, mostly signaling panic and climax, are often used as contrarian signals to fade the market. For example, a high put reading might signal that traders and investors are panicking and…
The Relative Strength Index indicator is popular, for a reason, but in this article, I backtested the default settings of the RSI indicator, and made it better. Investments and trading is a wonderful world where large companies and small investors…
As traders, we rely on different analysis tools to gain some insights into what the market might do next; one such tool that is easy to use is the Stoller Average Range Channels (STARC). What do you know about this…
There are several trading tools and indicators available to us day traders but only a few can track market movements and price action like the Schaff Trend Cycle (STC) does. What do you know about this indicator? The Schaff Trend…
While the movements of the financial markets seem very random and chaotic, they might actually follow a certain pattern if you can find it, and that is where the Fractal Chaos Bands come in. What do you know about this…
The Bollinger Bands is a very popular indicator for performing different kinds of market analysis, but when it comes to extracting information about price volatility, it’s the domain of its offspring, the Bollinger Bands Width. What do you know about…
Traders and market analysts keep inventing new tools to navigate the ever-changing landscape of financial markets, and one such tool is the CMO Absolute Indicator. What do you know about this indicator? The CMO Absolute indicator is a momentum indicator…
Traders are always seeking better ways to analyze the ever-changing price data in the financial markets, and one indicator that can transform the way you look at price data is the Fisher Transform. What do you know about this indicator?…
In the fast-paced world of financial trading, the search for a better technical indicator is never-ending, but one indicator that has been here a long time is the moving average envelope. What do you know about this indicator? The Moving…
As a financial market trader, you need tools that help you assess what is happening in the markets, and the positive volume index (PVI) might be the right one for you. What is this indicator and how does it work?…
While there are many technical analysis indicators available to the trading community, the Negative Volume Index (NVI) is a unique tool for analyzing the financial markets. What do you know about this indicator? Created by Paul Dysart, the Negative Volume…
Analyzing the financial markets can be a difficult task but there are numerous indicators to help with that — one such indicator is the Rainbow Oscillator. What do you know about this indicator and how it works? The Rainbow Oscillator…
In the trading world, there are many technical indicators to help you understand market trends and many more are being created — one such indicator is Polarized Fractal Efficiency (PFE). What do you know about this indicator? Polarized Fractal Efficiency…
One thing about the financial trading world is that traders are always looking for more tools to analyze the markets, and one such emerging tool is the Relative Volatility Index (RVI). What do you know about this tool and how…
Understanding volume analysis is very necessary for successful trading, and one indicator you can use for such analysis is the Volume Rate of Change (VROC). Do you know about this indicator and how to use it? In trading, the Volume…
Analyzing the financial markets and predicting how the market will move next can be a difficult task but can be made a bit easier with the Ease of Movement (EMV) indicator. What do you know about the Ease of Movement…
A time series analysis strategy might be helpful for traders. This article discusses practical tips & techniques and the essentials: forming objectives, selecting models, and preparing data for analysis. Whether you’re predicting stock performance or expecting weather changes, we provide…
Searching for ‘indicators for technical analysis’ means you’re looking for clarity on which tools will sharpen your trading decisions. This guide offers a straightforward rundown of essential technical indicators, such as trends, momentum, volume, and volatility measures, and explains how…
Cutler’s RSI including backtest. The RSI is a very popular trading indicator among different security traders. But there are other variations of the RSI indicator. One of them is Cutler‘s RSI. You may be wondering what it is, and in…
Hindenburg Omen Indicator Trading Strategy: how do you use it and what is it? Stock market crashes can wipe out traders’ and investors’ profits or even put them at a huge loss in no time. If you have been in…
For many traders, a market with high volatility means more room for profit. There are many tools for tracking the volatility in the market, and the mass index is one of them. What is this mass index trading strategy? The…
Technical indicators help us analyze stocks to know how to trade them, but they focus on the external price action of individual stocks. While this is not bad in itself, knowing the general market sentiment is equally important. This is…
Rolling returns for the S&P 500 are important to understand. Not only for S&P 500 but rolling returns are essential for any investment you make. What are rolling returns and how do you calculate them? What have been the rolling…
In trading, divergence means that the price swings and the indicator movement are not in phase. A divergence signal is generated when the price is making a higher swing high but the indicator is making a lower high, or the…
Many momentum oscillators tend to turn very positive at the beginning of a major advance and quickly enter the overbought territory or even show bearish divergence while the market is still advancing. The ultimate oscillator is a type of momentum…
If you are a fan of channel trading techniques, then you will definitely want to know about this old forgotten trading technique that projects potential support and resistance lines known as Andrews Pitchfork. You may be wondering what that is:…
In a series of articles, we want to test different indicators and trading techniques. Almost all indicators are “proved” by anecdotal evidence, and rarely quantified. That’s perhaps not a coincidence: Most of them are useless and do not have any…
There are many tools investors use to measure investors’ sentiment in the stock market, but the advance/decline indicator is one of the simplest ones. But what does the advance-decline indicator mean? Often referred to as the advance/decline index or advance/decline…
There are many technical indicators out there that are not frequently used in everyday trading but can be useful for analyzing previous price actions to easily spot useful patterns and trends. One of such tools is the Zig Zag indicator….
Is high short interest good or bad? Short interest in trading has been a hot topic during 2021 after Gamestop made short-sellers run for cover at prices many times higher than their entry price. But was the short squeeze in…
The Chaikin Oscillator Indicator was developed by Marc Chaikin in the 1980s. It’s not widely used nor well-known, perhaps for good reasons: we didn’t manage to find any significant profitable Chaikin Oscillator Trading Strategy in any of the quantified tests we…
