Volatility Indices Indicators of implied volatility designed to measure fear and complacency for a range of indices and ETFs. What Are Volatility Indices? The volatility indices measure the implied volatility…
The Balance of Power indicator can be charted on investment iqafter installing our free Advanced Indicator Pack. Please see our investment iq Plug-Ins article in the Support Center for more…
What Is the Record High Percent? A breadth measure based on new highs and lows is the Record High Percent.The quantity of equities setting new 52week highs is known as new highs.The quantity of equities that set new 52week lows is known as new lows.The number of new highs divided by the number of new highs plus new lows yields the indicator.New highs in relation to the total (new highs plus new lows) are displayed by this ratio.Record High Percent is a gauge of anindex's underlying strength or weakness, much like all other breadth indicators.For a number of important indexes, StockCharts.com computes the Record High Percent. Calculating the Record High Percent {New Highs / (New Highs + New Lows)} x 100 Spreadsheet 1 The number of new highs in relation to the total (new highs + new lows) is displayed by the Record High Percent, as the formula suggests. To generate round values that range from 0 to 100, the sum is multiplied by 100.…
Trading Models DecisionPoint Trend Model DecisionPoint's mechanical trend-based approach to trading. Trading StrategieWelcome to Part our Technical Analysis 101 Series – “Dominate the Markets with Smart Technical Analysis”!11 Bollinger Band…
Sector Rotation Analysis Based on the relative performance of the eleven S&P Sector SPDR ETFs, Sector Rotation Analysis aims to connect the stock market's current strengths and weaknesses with the overall business cycle. Once the strong and weak sectors have been determined, you may compare the results to a theoretical business cycle chart to potentially identify the market's business cycle stage. You may then use that information to forecast which industries will have the most growth in the upcoming weeks and months. The Business Cycle Sector Rotation Analysis Stage 1 shows the economy contracting and bonds turning up as interest rates decline. Economic weakness favors loose…
Bottom Fisher A market momentum indicator designed to help identify market bottoms. Introduction It should go without saying that a market's greatest potential emerges immediately following its lowest point. This happens when the momentum of all the constituents in a market average or any series with many components shifts from a downward trend below zero to a downward trend below zero. The change from the "winter" to the "spring" posture in Figure 1 symbolizes this. In this instance, momentum could be shown by a ROC or an RSI. However, a smooth momentum series, like a MACD or stochastics, is ideal since we are looking for a series that provides a somewhat intentional shift of direction. The Bottom Fisher actually makes use of the KST. Figure 1 The difference between the number of Dow stocks with short-term (daily) KSTs in the winter and spring positions, respectively, is used to compute the Bottom Fisher.The indicator decreases when more and more groups encounter winter as opposed to spring.The indicator bottoms and a purchase signal is produced when this divergence begins to reverse upward. To ensure that fluctuations in the indicator match those of the Dow, S&P, or any other market average to which it is being compared, the real data is shown inversely. The indicator must drop to one of the oversold levels shown in Chart 1 and then reverse for a reversal to be considered. As demonstrated by the May 2012 signal in the chart below, these indications are typically dependable but far from flawless. Waiting for a positive MA crossing of the!PRBFISH is therefore a more cautious strategy. In this instance, a 10-day SMA is the MA in use. Nevertheless, reversals that form at or below the 11 oversold level are typically slow and intentional, with minimal false upside reversals. Chart…
What Is the Balance of Power? An oscillator called the Balance of Power (BOP) gauges how much pressure there is to purchase and sell. In the August 2001 issue of Technical Analysis of Stocks & Commodities magazine, Igor Levshin introduced this indicator, which contrasts the ability of sellers to drive prices to lower extremes with the ability of purchasers to drive prices to higher extremes. Bulls are in control when the indicator is in positive area, while sellers are in control when it is in negative territory. A value close to the zero line suggests equilibrium between the two and may signal a reversal of the trend. Note: This indicator is sometimes referred to as the Balance of Market Power (BMP). Calculation Livshin's original calculation method for…
What Is the Put/Call Ratio? An indicator that displays put volume in relation to call volume is the put/call ratio. Put options are used to wager on a decline or to protect against market weakness.You can wager on an advance or hedge against market strength with call options. When put volume surpasses call volume, the put/call ratio is greater than 1, and when call volume surpasses put volume, it is less than 1. This indicator is usually used to measure the mood of the market.When the Put/Call Ratio is trading at relatively high levels, sentiment is considered overly negative; when it is trading at relatively low levels, sentiment is considered excessively positive.To smooth the data and extract signals, chartists can use moving averages and other indicators. Calculating the Put/Call Ratio The calculation is straightforward and simple.Copy Put/Call Ratio = Put Volume / Call Volume Options Exchanges Chicago Board Options Exchange (Cboe) Put/Call Ratios are available for research on StockCharts.com.The largest options exchange is Cboe, and its statistics are the most extensively used.The options are divided into three categories by the Cboeindicators: equity, index, and total.Options traded…
Diffusion Indicators A family of breadth oscillators for different securities collections, such as currencies, commodities, and key indexes. Finding out how many securities in a basket are responding favorably is the goal. The more of those there are, the more overbought the situation is and the more likely it is that the current trend will soon turn around. On the other hand, a bullish factor is a small number of securities in a favorable trend. The Dow Diffusion Indicator The Emerging Markets Diffusion Indicator The European Diffusion Indicator The Global Diffusion Indicator The Dollar (Currency) Diffusion Indicator…
Decision v Point Swenlin Trading Oscillator (STO) Short-term tops and bottoms can be identified with the help of an overbought/oversold indicator. Decision Point Intermediate. Click here to see that in Details The Swenlin Trading Oscillator (STO), an overbought/oversold indicator created by Carl Swenlin, can help spot short-term tops and bottoms. There are two variations: STO-B, which uses advances and declines, and STO-V, which uses advancing and declining volume. It is only proper to compute on an index because the computation is dependent on the number of advancers and decliners. Calculating STO The daily advances less decreases divided by the total number of daily advances and declines times 1000 is the STO, which is a 5-day simple moving average of a 4-day exponential moving average: (A-D)/(A+D)*1000. The width version of the STO can be computed using advances and declines, as demonstrated in the example below. Just replace advances and declines with advancing and declining volume to compute the volume version.A copy STO: 5 SMA (4…