The Stochastic RSI trading indicator is a momentum oscillator that combines the Relative Strength Index (RSI) with the Stochastic Oscillator to provide a more sensitive measure of price movement. Developed by Chande and Stanley Kroll in 1994, Stochastic RSI helps traders identify overbought and oversold conditions more effectively than traditional RSI. While RSI tracks momentum, the Stochastic...
The Momentum trading indicator is a technical analysis tool that measures the speed of price movements over a specified period of time. Instead of focusing on direction, it helps traders gauge the strength of price movements—whether it’s accelerating or losing market momentum. This makes it an essential tool for traders who want to confirm primary trends, identify potential trend reversals, and...
This week's update is a little more brief than normal as I am pressed for time with the school holidays and family commitments. The markets continued to hold their position and edge up a little this week. The Canadian and Hong Kong markets sitting above their 200EMA while the US markets are still lagging behind. If I was to personify the markets I would say they are holding their breath waiting...
The Ichimoku Cloud trading indicator, also known as Kinko Hyo, is a comprehensive indicator that offers traders a clear visual representation of price trends, price momentum, and support/resistance levels. Developed by Japanese journalist Goichi Hosoda, this all-in-one indicator is designed to provide traders with all the information they need to make well-informed decisions in a single...
The Put/Call Ratio is a tool commonly used by traders to gauge market sentiment, adding this tool to your trading system may provide the critical edge you need to make your system profitable. The Put/Call ratio offers traders a snapshot of market sentiment based on the volume of traded options. The put/call ratio is often seen as a contrarian indicator—a lens into the emotional state of the...
In the world of stock trading, understanding momentum is crucial, one powerful tool traders use to track momentum is the Rate of Change (ROC) trading indicator. In simple terms, the ROC measures how much a stock’s price has changed over a specific period of time, expressed as a straightforward percentage. Think of it as tracking the speed of a car, the faster the car accelerates, the higher the...
After the tariff shocks that started a couple of weeks ago the markets have rallied this week, but looking at the charts below I don't see a lot of cause for long side traders to get excited. The current rally is looking weak and it has already rolled over on the S&P500. Any negative news this coming week and I would expect a rapid decline to new lows, especially in US stocks. The...
The Elliott Wave trading indicator is a technical analysis tool that helps traders identify market trends by recognizing recurring price patterns in price movements. Think of it like a map that shows the twists and turns in a journey. Just like a map helps you predict your route, the Elliott Wave Indicator shows the expected market direction by identifying advances in price through five impulse...
Time cycles as a trading indicator refer to recurring cyclical patterns in market movements based on time durations rather than price action alone. Just as natural cycles—like seasons or lunar phases—follow a repeating pattern, financial markets also exhibit cyclical structures that traders analyze for market timing and trend reversals. Understanding these cycles is a powerful technical analysis...
The Vortex Indicator (VI) is a trading indicator and technical analysis tool introduced by Etienne Botes and Douglas Siepman in 2010. It is designed to detect trend patterns, confirm existing market trends, and provide insights into market trends by plotting two oscillating lines, VI+ and VI- lines, which represent positive trend movements and negative trend movements. The Vortex Indicator...
The standard deviation trading indicator is a fundamental tool in technical analysis that measures how much price values deviate from their average closing price over a given time period. The greater the standard deviation reading, the more volatile the asset, while a lower degree of deviation suggests stability. A useful way to think about standard deviation measures is like road traffic. On a...
Well I certainly hope you like rollercoasters, because that is exactly what the markets feel like at the moment! After the massive tariff shocks of last week, this week we had the 10th largest up move in the history of the S&P500 (close to close in percentage terms). I am not going to get into the drivers of the volatility this week because unless you are living under a rock you can't miss...