On-Balance Volume or OBV for Short The On-Balance Volume indicator (OBV) is used to measure the Positive and Negative flow of Volume in a security, relative to its price over time. It is a simple measure that keeps a cumulative total of Volume by...
Indicators
Accumulation/Distribution (Where is the money flowing to?)
Accumulation Another subject we need to understand before continuing with some of the other “Volume based” indicators is accumulation. When we refer to Accumulation in this tutorial we will be referring to one of 2 things. When large institutional investors want to buy into a...
Moving Average Convergence Divergence
An explanation of how the MACD indicator is used. It is one of the most useful indicators in a Stock traders toolbox.
Volume
Volume is perhaps the easiest of all indicators to read or understand. Basically all it is, is a summation of all transactions for a given stock, share, commodity or Index over a given timeframe.(it doesn’t matter whether it is buying or selling E.g. if...
Exponential Moving Avarage
Definition of Exponential Moving Average (EMA) Exponential Moving Average shows the average value of the underlying stock, share or commodity for a given time period, by applying more weight to the latest changes in prices and less weight to the changes that lie further...
Simple Moving Average
The Simple Moving Average or SMA for short. The first “tool” to identify a trend is what is called a Moving Average. (MA for short) or (SMA for Simple Moving Average) Luckily for us that is not so hard. The Moving Average is basically...
Trends
Trend analysis is where a trader tries to predict the future movement of a stock by looking at the stock’s historical data. It is based on the idea that what has happened in the past will happen in the future. There are 3 main...
Trading Indicators
In this section we will deal with indicators. Indicators are basically instruments used by traders to signal when to buy and when to sell equity, stocks in this case. It doesn’t get more complicated than that. There are hundreds of indicators around in the...
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