Mass Index

Mass Index

The Mass Index identifies pricechanges by indexing the narrowing and widening change between high and lowprices. Mass Index, reversals may occur when a 25-period Mass Index rises above27 or falls below 26.5. The Mass Index is a range oscillator. It is designed toidentify possible market extremes by comparing range between daily high and lowprices. The greater the distance, the greater the volatility, and vice versa.

It is used to identify trendreversals. The Mass Index is a range oscillator that uses changes in tradingprice and provides unique market reversal forecasts that other indicators maymiss. The Mass Index attempts to identify reversals by comparing the tradingrange between High & low prices for each period. A bulge in the index linesignals reversals.

MACD

MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD)

The MACD is a moving averageoscillator that shows potential overbought/oversold phases of marketfluctuation. The MACD is a calculation of two moving averages of the underlyingprice/indicator. Buy/Sell interpretations may be derived from crossovers(calculated from the Signal Periods parameter), overbought/oversold levels ofthe MACD and divergences between MACD and actual price.

The MACD ("Moving Average ConvergenceDivergence") is a trend following momentum indicator that shows therelationship between two moving averages of prices. MACD uses exponentialmoving averages, which are lagging indicators, to include some trend-followingcharacteristics. These lagging indicators are turned into a momentum oscillatorby subtracting the longer moving average from the shorter moving average. Theresulting plot forms a line that oscillates above and below zero, without anyupper or lower limits. MACD is a centered oscillator.

The MACD is the differencebetween a 26-period and 12-period exponential moving average. A 9-periodexponential moving average, called the signal line is plotted on top of the MACD to show buy/sell opportunities

The MACD proves most effective inwide-swinging trading markets. The basic MACD trading rule is to sell when theMACD falls below its signal line, a buy signal occurs when the MACD rises aboveits signal line. It is also popular to buy/sell when the MACD goes above/belowzero. The MACD is also useful as an overbought/oversold indicator.

Historical Volatility

Historical Volatility

Historical volatility is thelog-normal standard deviation. This formula will output a 30-day historicalvolatility index between 1 and 0- Stdev(Log(Close / Close Yesterday), 30) *Sqrt(365) Similar to the coefficient ofdetermination, the higher the value is, the more volatile the stock is.

High Minus Low

High Minus Low

Returns the high price minus thelow price.

High Low Bands

High Low Bands

High Low Bands consist oftriangular moving averages calculated from the underling price, shifted up anddown by a fixed percentage, and include a median value. When prices rise abovethe upper band or fall below the lower band, a change in direction may occurwhen the price penetrates the band after a small reversal from the oppositedirection.

Exponetial Moving Average

Exponential MovingAverage

An Exponential Moving Average is similar to a Simple MovingAverage. An EMA is calculated by applying a small percentage of the currentvalue to the previous value. An EMA applies more weight to recent values. AMoving Average is most often used to average values for a smootherrepresentation of the underlying price or indicator.

Exponential MovingAverage reduces the lag by applying more weight to recent prices relative toolder prices. The weighting applied to the most recent prices depends on thespecified period of the moving average. The important thing is that theexponential moving average puts more weight on recent prices. It will reactquicker to recent price changes than a simple moving average.

It smoothes a data series and makes it easier to spottrends, something that is especially helpful in volatile markets. Movingaverages are lagging indicators, and therefore, by definition, will give latesignals. By weighting recent price data more heavily, exponential movingaverages attempt to speed up the signal given.It provides support andresistance.

Ease Of Movement

Ease Of Movement

The Ease of Movement oscillator shows a unique relationshipbetween price change and volume. The Ease of Movement oscillator rises whenprices are trending upwards under low volume, and likewise, the Ease ofMovement oscillator falls when prices are trending downwards under low volume.

The Ease of Movement indicator shows the relationshipbetween volume and price change over the user-specified number of periods. Itcalculates the ease at which prices are moving. The larger the price move andthe lighter the volume, the easier the movement.

High Ease of Movement values occur when prices are movingupward on light volume. Low Ease of Movement values occur when prices aremoving downward on light volume. If prices are not moving, or if heavy volumeis required to move prices, then the indicator will also be near zero.

It highlights the relationship between volume and pricechanges and is particularly useful for assessing the strength of a trend. TheEase of Movement indicator produces a buy signal when it crosses above zero,indicating that prices are moving upward more easily; a sell signal is givenwhen the indicator crosses below zero, indicating that prices are movingdownward more easily.