The realm of trading indicators is endless. It is said that candles were the first indicators used by traders. In that case, it was Japanese rice traders who would note daily opening and closing prices as well as the daily high low. The same data in western trading evolved as bars. When placed on a time line, a rudimentary price chart is born.
But as we know, inquiring minds want to know more. Early trading software added moving averages, which are trendline measures of the rate price changes with time. From that evolved comparing two changes on the same chart, and the MACD was born. And from these humble beginnings, indicators went forth and multiplied.
A comprehensive list, and a very good source for straightforward definitions with examples, can be found at Chip Anderson's stockcharts.com. This is a sampling of a few indicators that deeply interested me. I have numerous more that will eventually be added to this page.
- RSI for Trend Reversal and Chop zone indication
- The Hull MA and Regression Curves: a comparison
- ADX: Keeping out of Chop and implementation of Welles Wilders approach
-- Complete Original article
-- Update to Original article with 2nd template
- expRSI: RSI with Expanded scale
- Initial Balance, a Quick Way to Mark it
- Getting the Correct Daily OHLC on Tick, Volume, and Range Charts