Glossary

Average Directional Index (ADX)

The average directional index is a technical indicator that measures the strength of the ongoing trend, and it is applicable for all asset classes, stocks, forex, and commodities.

Average True Range (ATR)

ATR (Average True Range) is a technical indicator that measures how much a stock or asset moves on average during a set period, usually 14 days. It helps traders understand market volatility.

Bollinger Bands

Bollinger Bands are technical analysis indicators consisting of a middle band (a simple moving average) and two outer bands (standard deviations above and below the moving average). They measure price volatility and identify potential overbought or oversold conditions.

Death Cross

A death cross is a chart pattern that shows the price of an asset is weakening. It happens when a short-term moving average crosses below a long-term moving average. This crossover signals that momentum has shifted, and traders who were previously optimistic may now have a bearish outlook.

Displaced Moving Average (DMA)

Displaced Moving Average (DMA) is a type of moving average that shifts a simple or exponential moving average (SMA or EMA) forward or backwards in time by a specified number of periods.

Donchian Channels

Donchian Channels are a trend-following technical indicator that plots the highest high and lowest low over a specified time period. They are typically used to identify price breakouts, volatility, and support/resistance levels.

Exponential Moving Average (EMA)

An exponential moving average is a technical indicator that gives weight to the recent and current closing prices, making it more responsive to price changes than the Simple Moving Average (SMA). It is used to identify bullish or bearish trends in the markets.

Golden Cross Pattern

A Golden Cross is a bullish signal in technical analysis that occurs when a short-term moving average (like the 50-day) crosses above a long-term moving average (like the 200-day). It indicates a potential uptrend in the stock or market.

Ichimoku Cloud

The Ichimoku Cloud is a technical indicator that shows you the trend direction, support and resistance levels, and momentum of a stock all in one chart. It helps traders quickly understand whether to buy, sell, or wait by using five lines and a shaded area called the “cloud.”

Keltner Channels

Keltner Channels are a volatility-based technical indicator consisting of three lines, a central exponential moving average (EMA) and two outer bands set above and below the EMA by a multiple of the average true range (ATR).

Momentum Indicators

Momentum indicators are technical indicator tools that measure the speed or rate of change in stock prices. They help highlight their role in identifying the strength of price movements and potential trend reversals.​

Moving Average Convergence Divergence (MACD)

MACD, or Moving Average Convergence Divergence, is a technical analysis indicator that helps traders identify both the direction of a trend and the strength of momentum by comparing short-term and long-term moving averages of a security’s price.

Parabolic SAR

The Parabolic SAR is a technical indicator that helps identify potential reversals in market price direction.

Relative Strength Index (RSI)

RSI is a tool that shows whether a stock is overbought or oversold. It gives a score between 0 and 100. If it’s above 70, the stock may be overbought; if it’s below 30, it may be oversold.

Simple Moving Average (SMA)

A Simple Moving Average (SMA) is a technical analysis tool that calculates the average price of a security over a set number of periods. It smooths out price fluctuations and shows the overall direction of the market trend.

Stochastic Oscillator

The Stochastic Oscillator is a momentum indicator used in technical analysis that compares a stock’s closing price to its price range over a specific period. These Indicators help traders identify potential overbought and oversold conditions in the market.

Supertrend Indicator

Supertrend is a technical indicator used to identify the direction of the market and signal buy or sell opportunities. It moves along with the price and is based on two things: the Average True Range (ATR) and a multiplier.

Technical Indicators

Technical indicators are mathematical calculations based on the price or volume of a security. They are used by traders and analysts to forecast future market trends and identify trading opportunities.

Volatility Indicators

Volatility is the rate at which the price of a security increases or decreases for a given set of returns. Technical tools like Bollinger bands, ATR, and VIX help to understand market volatility.

Volume Indicators

Volume indicators are technical analysis tools that help traders understand how much a stock or asset is being traded over a certain period. Volume indicators show the strength or weakness of a price move based on trading activity.