Accumulative Swing Index (ASI) based on the Swing Index, is a swing or wave system used to capitalize on breakout patterns. ASI is commonly used to confirm trendline breakouts on price charts.
ADX Directional Movement Index The Directional Movement Index, DMI, is an effective and frequently used trend indicator. This system was designed by Welles Wilder Jr. and is made up of three lines : The +DI indicates the up average. The -DI indicates the down average. The ADX, average directional movement index, shows whether a trend is in effect by smoothing the difference between the +DI and -DI.
Average True Range an envelope consisting of support and resistance lines of the average true price range, calculated by the exponential average of the difference between highs and lows.
Commodity Channel Index The Commodity Channel Index, CCI, was designed to identify the beginning and the end of commodity market cycles by Donald Lambert. It has also proven effective for other markets. CCI compares the current mean price with the average mean price over a period of usually 20 days.
MACD Stands for Moving Average Convergence/Divergence. The MACD method, developed by Gerald Appel, is a trending indicator, telling us whether a stock is in an uptrend or a downtrend.
MACD Histogram Thomas Aspray found that MACD signals often lagged important market moves, especially when applied to weekly charts. He first experimented with changing the moving averages and found that shorter moving averages did indeed speed up the signals. However, he was looking for a means to anticipate MACD crossovers and came up with the MACD Histogram.
McClellan Oscillator Short to intermediate term leading indicator showing overbought markets (above +100) and oversold markets (below -100). MO provides a valuable timing tool as bullish when MO breaks up through the zero line, or bearish when it breaks down.
McClellan Summation Index Mid to long term indicator based on the sum of each day's McClellan Oscillator reading and used to spot major market turning points. MSI breaking above +1500 is considered oversold. MSI breaking below -1500 is considered overbought.
Momentum Measures the velocity of price changes. The use of momentum indicators can warn of building strength or weakness in a market, often well ahead of a change in trend.
Parabolic SAR Developed by Welles Wilder who also developed the Relative Strength Index (RSI), is usually referred to as the Parabolic "SAR" (stop-and-reverse).
Relative Strength Index (RSI) Popular oscillator developed by Welles Wilder, Jr. RSI measures the relative changes between higher and lower closing prices, and provides an indication of overbought and oversold conditions.
Standard Deviation A statistical concept, providing a reliable measure of volatility or how much the price varies from its simple moving average. A high standard deviation implies high volatility and a low standard deviation implies low volatility.
Stochastic Oscillator A momentum oscillator warning of overbought/oversold situations often well ahead of the final turning point. When a stock is rising it tends to close near the high (above the 80% line) and when a stock is falling it tends to close near its low (below the 20% line). These "trigger" lines form the stochastic bands and a signal is generated when these lines are crossed