Simple Moving Average (SMA) – The simple moving average is found by calculating the sum of X periods and then dividing them by X periods. You can chart up to three simple moving averages. Make sure the box is checked for each separate SMA you would like. You can then slide the tab on the scale to set specific periods. Note that if you are looking at a daily chart, the periods would represent days and if you are looking at an hourly chart, the periods would represent hours.
Exponential Moving Average (EMA) – The exponential moving average gives more weight to current data, making it more responsive to new information. EMA = (P * q) + [Previous EMA x (1 – q)] where P = current price, q = smoothing factor = 2/(1+N) and N = number of periods. You can chart up to three exponential moving averages. Make sure the box is checked for each separate EMA you would like. You can then slide the tab on the scale to set specific periods. Note that if you are looking at a daily chart, the periods would represent days and if you are looking at an hourly chart, the periods would represent hours.
Bollinger Bands – Bollinger bands are lines that are drawn in and around the price movement to define highs and lows on a relative basis. The middle base of the bands is a simple moving average. Volatility and standard deviation are used to set the width of the bands and change them as market conditions change. The standard settings for the Bollinger Bands is a 20-day moving average and two deviations. You can change the default settings by sliding the tabs on the two scales. Bollinger Bands can be used multiple ways, including pattern recognition and choosing entry and exit in conjunction with other technical studies.
Parabolic Stop and Reverse (PSAR) – Parabolic Stop and Reverse is an indicator that has been traditionally used to set trailing price stops. You can use the scale to set your own values. The dots below the price line are long position stops and the dots above the price line are short position stops. At the start of the move, the PSAR will keep ample room between the dots and the price line. As the move continues, the distance between price and indicator will shrink, tightening the stop-loss.
Standard Deviation – This study measures the dispersion between the closing price from the average for a given set of data points. This study can indicate measures of volatility.
Linear Regression Channel – This study uses a selected amount of data points (customizable period) to determine future price action. The line that is issued below the chart is the line of “best fit,” approximating all of data points requested by the period selection. A positive sloping regression line can suggest bullish market movement, while a negative sloping regression line can suggest bearish market movement.
Donchian Channels – Developed by Richard Donchian, this indicator plots the highest high and the lowest low of “n” periods. You can set the number of periods by sliding the tab on the scale. When the price breaks above the top channel line, it is suggested to take a long position or cover short positions. When the price drops below the bottom channel line, consider a short position or exit all long positions. This indicator works well with trending markets, but is less successful during sideways markets.
