VOGAZ - Technical Analysis Tool and Charting Software

VOGAZ  - Technical Analysis Tool and Charting Software
VOGAZ- A Technical Analysis Tool and Charting Software for Stock, Forex & Commodity Market Investors and Traders.

Tuesday, February 7, 2012

Williams Accumulation Distribution




Williams Accumulation Distribution
The Accumulation/Distributionindicator shows a relationship of price and volume. When the indicator isrising, the security is said to be accumulating. Conversely, when the indicatoris falling, the security is said to being distributing. Prices may reverse whenthe indicator converges with price.. It is a volume weighted price momentumindicator. It measures buying and selling pressure by calculating therelationship between the numbers of points that the market has moved from opento close, relative to the periods entire range. WilliamsAccumulation-Distribution tracks the buying pressure and selling pressure.Williams AD is a running sum of positive accumulation values (buying pressure)and negative distribution values (selling pressure).
The Williams Accumulation/DistributionIndicator tries to find underlying relationships between the close, high andlow prices. It tracks the buying pressure and selling pressure.
WilliamsAccumulation-Distribution (WAD) tracks buying pressure (accumulation) andselling pressure (distribution) on a security.
With accumulation, most of thevolume is associated with upward price movement.
With distribution, most of thevolume is associated with downward price movement.

Williams %R




Williams PctR
Williams %R measuresoverbought/oversold. The most widely used method for interpreting Williams %Ris to buy when the indicator rises above 80 or sell when the indicator fallsbelow 20. Williams %R is a momentum indicator.It indicates that the essence ofhis trading system is based on interpreting readings of %R. William %R,sometimes referred to as %R, shows the relationship of the close relative tothe high-low range over a set period of time. The nearer the close is to thetop of the range, the nearer to zero (higher) the indicator will be. If theclose equals the high of the high-low range, then the indicator will show 0(the highest reading). If the close equals the low of the high-low range,
This method is used to decidemarket entry and exit point. The %R always ranges in between the value of 100and 0. For day-trading, when % R reaches 10% or lower it is considered a sellindicator and when it reaches 90% or higher it is considered as a buyindicator. Williams %R takes into account ten trading periods to determine thetrading range. Once the ten-period trading range is determined, the %R iscalculated where current periods closing price fall within that range. Thesignal is most useful in trending markets.
Williamss %R has proven veryuseful for anticipating market reversals. It identifies overbought or oversoldmarkets. It is important to remember that overbought does not necessarily implytime to sell and oversold does not necessarily imply time to buy. A securitycan be in a downtrend, become oversold and remain oversold as the pricecontinues to trend lower. Once a security becomes overbought or oversold,traders should wait for a signal that a price reversal has occurred. One methodmight be to wait for Williams %R to cross above or below -50 for confirmation.Price reversal confirmation can also be accomplished by using other indicatorsor aspects of technical analysis in conjunction with Williams %R.
One method of using Williams %Rmight be to identify the underlying trend and then look for tradingopportunities in the direction of the trend. In an uptrend, traders may look tooversold readings to establish long positions. In a downtrend, traders may lookto overbought readings to establish short

Welles Wilder Smoothing




Welles Wilder Smoothing
The Welles Wilders Smoothingindicator is similar to an exponential moving average. The indicator does notuse the standard exponential moving average formula. This indicator is used ina the manner that any other moving average would be used. Moving averages areused to help identify the trend of prices. By creating an average of prices, that moves with the addition of newdata, the price action on the security being analyzed is smoothed.

Weighted Moving Average




Weighted Moving Average
A Weighted Moving Average placesmore weight on recent values and less weight on older values. A Moving Averageis most often used to average values for a smoother representation of theunderlying price or indicator. A weighted moving average is designed to putmore weight on recent data and less weight on past data. A weighted movingaverage is calculated by multiplying each of the previous periods data by aweight. The weighting is calculated from the sum of period. First, theexponentially smoothed average assigns a greater weight to the more recent data.Therefore, it is a weighted moving average. But while it assigns lesserimportance to past price data, it does include in its calculation all the datain the life of the instrument.
If larger weight factors are usedfor more recent periods and smaller factors for measurements further back intime, the trend will be more responsive to recent changes without sacrificingthe smoothing a moving average provides Weighted Moving Average smoothes a dataseries that is very important in a volatile market

Weighted Close




Weighted Close
Weighted Close is an average ofeach days open, high, low, and close, where more weight is placed on the close.The Weighted Close indicator is a simple method that offers a simplistic viewof market prices. It gets its name from the fact that extra weight is given tothe closing price. It places greater weighting on closing price. Bothindicators approximate the average price traded for a period and is used asfilters in moving average systems.
The weighted close study isanother way of viewing the price data. It places a greater emphasis on theclosing price rather than the high or low. This process creates a single linechart. It provides clear and concise picture of the market

Volume ROC




Volume ROC
The Volume Rate of Changeindicator shows clearly whether or not volume is trending in one direction oranother. Sharp Volume ROC increases may signal price breakouts. V-ROC is theindicator that shows whether or not a volume trend is developing in either anup or down direction. The Volume ROC shows the speed at which volume ischanging. This can be quite informative as almost every significant chartformation is accompanied by a sharp increase in volume.
The V-ROC shows the rate ofchange measured by volume. You will need to divide the volume change over thelast n-periods by the volume n-periods ago. The answer will be a percentagechange of the volume over the last n-periods.
With most markets, the volume canbe expected to within a constant range over time. When volume moves outsidethis range and begins to trend either upwards or downwards, then a capitulationof one sort or another can be expected. Using this breakout from the average,the VROC is best used as a confirmation indicator to other studies.
If the volume for the currentperiod is higher than n-period ago, the rate of change will be a plus number.If volume is lower, the ROC will be minus number. This allows looking at thespeed at which the volume is changing.

Volume Oscillator




Volume Oscillator
The Volume Oscillator shows aspread of two different moving averages of volume over a specified period oftime. The Volume Oscillator offers a clear view of whether or not volume isincreasing or decreasing. The Volume Oscillator displays the difference betweentwo moving averages of a volume. The difference between the moving averages canbe expressed in either points or percentage.
You can use the differencebetween two moving averages of volume to determine if the overall volume trendis increasing or decreasing. When the Volume Oscillator rises above zero, itsignifies that the shorter-term volume moving average has risen above thelonger-term volume moving average, and thus, that the short-term volume trendis higher than the longer-term volume trend.

VIDYA

VIDYA (Volatility Index DynamicAverage), , is a moving average derived from linear regression R2. A MovingAverage is most often used to average values for a smoother representation ofthe underlying price or indicator. VIDYA is a derivative of linear regression,it quickly adapts to volatility. R2Scale is a double value specifying theR-Squared scale to use in the linear regression calculations. VIDYA (VolatilityIndex Dynamic Average) is a variable-length moving average, which adapts to thevolatility in question by exponentially smoothing data based on standarddeviation .The VIDYA uses a volatility index for weighting the data points.
In this moving average theadjustment is done primarily to improve its responsiveness in times ofheightened volatility. The indicator is more responsive to market pricemovements than a conventional simple or exponential moving average, and can beused for position trading

Variable Moving Average




Variable Moving Average
A Variable Moving Average is anexponential moving average that adjusts to volatility. A Moving Average is mostoften used to average values for a smoother representation of the underlyingprice or indicator. A variable moving average is an exponential moving averagethat automatically adjusts the smoothing percentage based on the volatility ofthe data series. The more volatile the data, the more sensitive the smoothingconstant used in the moving average calculation. Sensitivity is increased bygiving more weight given to the current data.
During trading ranges (whenprices move sideways in a narrow range) shorter term moving averages tend toproduce numerous false signals. In trending markets (when prices move up ordown over an extended period) longer-term moving averages are slow to react toreversals in trend. By automatically adjusting the smoothing constant, avariable moving average is able to adjust its sensitivity, allowing it toperform better in both types of markets.

Ultimate Oscillator




The Ultimate Oscillator comparesprices with three oscillators, using three different periods for calculations.The most popular interpretation of the Ultimate Oscillator is price/indicatordivergence.
Oscillators typically compare ainstruments smoothed price with its price x-periods ago. Ultimate Oscillatorthat uses weighted sums of three oscillators, each of which uses a different timeperiod. Values range .
The timeframe and number ofperiods used in plotting Ultimate Oscillator can vary according to desiredsensitivity and the characteristics of the instrument. Typically values of7-periods, 14- periods and 28-periods are used. Note that these time periodsall overlap, i.e. the 28-period time frame includes both the 14-period timeframe and the 7-period time frame. This means that the action of the shortesttime frame is included in the calculation three times and has a magnifiedimpact on the results

Typical Price




Typical Price
A Typical Price is simply anaverage of one periods high, low and close values. A Typical Price is oftenused as an alternative way of viewing price action, and also as a component forcalculating other indicators.. The Typical Price indicator provides a simple,single-line plot of the periods average price. Some traders use the TypicalPrice rather than the closing price when creating moving average penetrationsystems. Typical Price is another approximation of average price for eachperiod and can be used as a filter for moving average systems
For day trading, the TypicalPrice helps you to get a clear view of what the main thrust of the days actionwere.

True Range




True Range
The Average True Range measuresmarket volatility. High ATR values may signal market bottoms, and low ATRvalues may signal neutral markets. The True Range measures market volatility.
High values indicate that pricesare changing a large amount during the period. Low values indicate that pricesare staying relatively constant. Note that both trending and level prices canhave high or low volatility.
The value is typically smoothedwith a moving average. High volatility levels can sometimes be used to timetrend reversals, such as market tops and bottoms. Low volatility levels cansometimes be used to time the beginning of new upward price trends followingperiods of consolidation.
The True Range is a measure ofvolatility. Major tops are typically accompanied by high volatility during theblow-off phase of a market, as traders become more and more nervous and readyto take profits. Major bottoms are usually calmer, with low volatility, as thehopes for quick profits have faded. The idea is to replace the high - lowinterval for the given period, as the high-low does not take into considerationgaps and limit moves.

TRIX

TRIX is a momentum oscillator thatshows the rate of change of an exponentially averaged closing price. The mostcommon interpretation of the TRIX oscillator is to buy when the oscillatorrises and sell when the oscillator falls. 3, 8 and 14 period moving averagesare often used to smooth the TRIX oscillator. TRIX is a momentum indicator thatdisplays the percent rate-of-change of a triple exponentially smoothed movingaverage of the instruments closing price. It is designed to keep you in trendsequal to or shorter than the number of periods you specify.
The TRIX indicator oscillatesaround a zero line. Its triple exponential smoothing is designed to filter outinsignificant cycles. Trades should be placed when the indicator changesdirection (i.e., buy when it turns up and sell when it turns down). The TRIX can also help identify turningpoints. The simplest rule of trading decisions making while following thetrend- to buy, when TRIX changes direction from decreasing one to incising. Andto sell, when TRIX changes direction from incising one to decreasing.

Triangular Moving Average




Triangular Moving Average
Triangular Moving Average give more weight tothe price in the middle of the moving average periods. A Moving Average is mostoften used to average values for a smoother representation of the underlyingprice or indicator. They are actually double-smoothed simple moving averages.The periods used in the simple moving averages varies .
Moving averages are used to helpidentify the trend of prices. Bycreating an average of prices, that "moves" with the addition of newdata, the price action on the security being analyzed is “smoothed".
In other words, by calculatingthe average value of a underlying security or indicator, fluctuations arereduced in importance and what remains is a stronger indication of the trend ofprices over the period being analyzed

Trade Volume Index




Trade Volume Index
The Trade Volume index showswhether a security is being accumulated or distribute. When the indicator isrising, the security is said to be accumulating. when the indicator is falling,the security is said to being distributing. Prices may reverse when theindicator converges with price.
The TVI helps identify whetherbuyers or sellers are in control. If the TVI is trending up, it indicates thatbuyers are in control. If the TVI is trending down, it indicates that sellersare in control. If the TVI is abovezero, it indicates that net buying has taken place over the time perioddisplayed. If the TVI is below zero, it indicates that net selling has takenplace over the time period displayed

Time Series Moving Average




Time Series Moving Average
A Time Series Moving Average issimilar to a Simple Moving Average, except that values are derived from linearregression forecast values instead of raw values. A Moving Average is mostoften used to average values for a smoother representation of the underlyingprice or indicator. The time series moving average is calculated using linearregression techniques. Rather than plotting a straight linear regression line,a time series moving average plots the last point of the line. The MovingAverage (Time Series) function returns the moving average of a field over agiven period of time based on linear regression.
The time series moving average iscalculated by fitting a linear regression line over the values for the givenperiod, and then determining the current value for that line. A linear regressionline is a straight line, which is as close to all of the given values aspossible.
Moving averages are useful forsmoothing noisy raw data. By looking at the moving average of the price, a moregeneral picture of the underlying trends can be seen. Since moving averages canbe used to see trends, they can also be used to see whether data is bucking thetrend. Entry/exit systems often compare data to a moving average to determinewhether it is supporting a trend or starting a new one.

Swing Index

Swing Index
The Swing Index is a popularindicator that shows comparative price strength within a single security bycomparing the current open, high, low and close prices with previous prices.The Swing Index is a component of the Accumulation Swing Index This momentumindicator is used primarily as a component of the Accumulative Swing Index.
It provides an indication of thereal strength and direction of a price trend by providing a single indicatorline, which can be analyzed for support and resistance lines.

Stochastic Oscillator

Stochastic Oscillator
The Stochastic Oscillator is apopular indicator that shows where a securitys price has closed in proportionto its closing price range over a specified period of time. The StochasticOscillator has two components- %K and %D. %K is most often displayed as a solidline and %D is often shown as a dotted line. The most widely used method forinterpreting Other way to interpret the Stochastic Oscillator is to buy when %Krises above %D, and conversely, sell when %K falls below %D. The StochasticOscillator is a momentum indicator that shows the location of the current closerelative to the high/low range over a set number of periods. Closing levelsthat are consistently near the top of the range indicate accumulation and those near the bottom of the range indicatedistribution
The Stochastic Oscillator is a momentum indicator that shows thelocation of the current close relative to the high/low range over a set numberof periods. Closing levels that are consistently near the top of the rangeindicate accumulation (buying pressure) and those near the bottom of the rangeindicate distribution (selling pressure).
In an upward-trending market,prices tend to close near their high, and during a downward-trending market,prices tend to close near their low.
It is as a buy/sell signalgenerator, buying when fast moves above slow and selling when fast moves belowslow. Most traders use the Slow Stochastics because of its more reliablesignals

Stochastic Momentum Index

Stochastic Momentum Index
The Stochastic Momentum Index.This indicator plots the closeness relative to the midpoint of the recenthigh/low range. The Stochastic Momentum Index has two components- %K and %D. %Kis most often displayed as a solid line and %D is often shown as a dotted line.The most widely used method for interpreting the Stochastic Momentum Index isto buy when either component rises above 40 or sell when either component fallsbelow 40. Another way to interpret the Stochastic Momentum Index is to buy when%K rises above %D, and conversely, sell when %K falls below %D periods.It isconstructed by comparing the price to the average of the high-low price rangeover a given period. The result is an oscillator that ranges.
The oscillator is comprised oftwo lines, the SMI and the moving average of the SMI. When the close is greaterthan the midpoint of the range, the SMI will be positive. When the close isless than the midpoint of the range, it will be negative.
IIt is used as a sentiment, ortrend identification indicator, thereby providing a better sense of the overalldirection of the market. The interpretation of the SMI is virtually identicalto that of the Stochastic Oscillator. The most basic pattern to trade from isto buy when the SMI falls below -40 and then returns above it. Sell when theSMI rises above +40 and then falls back below that level. Another tradingsignal is buy when the SMI rises above the moving average, and sell when theSMI falls below the moving average.

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