Indicator Basics

Relative Strength & Overlays

Moving Average Types

Moving Average Systems

Moving Average Oscillators

Trend Indicators

Momentum Oscillators

Money Flow


Trailing Stops

Volatility Indicators

Trend Indicators

Bar chart signals often conflict and it is difficult to separate the trend from the surrounding 'noise'. Trend indicators attempt to provide an objective measure of the direction of the trend. Price data is smoothed and the trend is represented by a single line, as in the case of a moving average. Because of the smoothing process the indicators tend to lag price changes and are often called trend following indicators.

Trending v. Ranging Markets

Most trend indicators lose money during a ranging market as fluctuations in a narrow price band tend to whipsaw traders in and out of their positions.

It is important to identify whether the market is trending or ranging and to employ indicators suited to the purpose: trend indicators for trending markets and the faster momentum indicators for ranging markets.

Types of Trend Indicators

Moving Average - Closing Price

Moving average
Two Moving Averages
Three Moving Averages

Moving Average Oscillator

MACD Histogram
TRIX Indicator
Smoothed Rate of Change

Moving Average - Overbought / Oversold

Price Envelope
Bollinger Bands

Directional Movement

Directional Movement System

Stop and Reverse System

Parabolic SAR

Closing price compared to Moving Average

Commodity Channel Index
Detrended Price Oscillator

Price Averages

Median Price
Typical Price
Weighted Close

Price Comparison

Price Comparison
Price Ratio
Price Differential

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