Volatility is your friend when trading the market.  It is like dark matter in the universe; you can’t see it, but it’s the very essence of the market.  There are a number of volatility indicators, one of which we will cover in this article.  Volatility is such a unique attribute, how do you know when it’s Read the full article →

What is the Money Flow Index The Money Flow Index MFI is a momentum indicator which is used to measure the amount of money flowing into and out of a security.   The indicator is similar to the relative strength index formula, but instead of measuring a security’s price action relative to itself, it measures the Read the full article →

Tick Volume Definition Tick volume is measuring every trade whether up or down and the volume that accompanies those trades for a given time period. If you are a day trader or a short term swing trader, tick volume analysis will assist you in sizing up the market on an intraday basis. Some traders also Read the full article →

Projection Oscillator Definition The projection oscillator was developed by Dr. Mel Widner and is intended as a modification of the projection bands.  The thing that makes the projection oscillator unique is that it measures the value of the current price to the lower and upper projection bands.  Whereas other oscillators such as the stochastic oscillator Read the full article →

Commodity Channel Index Definition The commodity channel index (CCI) is an oscillator used to identify cyclical trends in a security. It gained its name because it was originally used to analyze commodities. While the CCI will oscillate above and below the zero line, it is more of a momentum indicator, because there is no upward Read the full article →

Aroon Indicator – Overview The aroon indicator anticipates when a security is changing from an impulsive move to a trading range and vice versa. The Aroon indicator was developed by Tushar Chande, who also created the Chande Momentum Oscillator and the Qstick. The aroon indicator displays two plots: (1) Aroon Up and (2) Aroon Down. Read the full article →

Volume Rate of Change Definition The volume rate of change (ROC) is a technical indicator used to gauge the volatility in a security’s volume.  The volume rate of change is a powerful indicator when estimating a security’s ability to push through key resistance.  The volume ROC is calculated the exact same way as the rate Read the full article →

Relative Strength Index Definition The Relative Strength Index (RSI) is one of the most popular indicators in the market. If you look over any market technician’s shoulder there are a few indicators that show up quite frequently: MACD, simple moving average, volume and last but not least the RSI.  The RSI is a basic measure Read the full article →

Price Rate of Change Definition The Price Rate of Change (ROC) displays the value of the current price relative to the price of n periods ago.  The Price Rate of Change can be expressed in either points or percentages. Price Rate of Change Formulas To plot the ROC in terms of points use the below Read the full article →

What are Kagi Charts? Kagi charts display the price action for a security.  This method was developed by the Japanese in the late 1800s.  Kagi charts are similar to point and figure charts in that it is not time based, but is dependent upon the price movement of the security to print a new line Read the full article →