Sectoral Rotation, or Relative Rotational charts, are a powerful visual tool in assessing how different sectors within a portfolio compare in terms of their relative strength and momentum; it’s easier to spot which sectors are getting stronger or weaker compared to a benchmark, thus highlighting possible changes in market leadership and trends in asset performance
In a future version of ChartAlert, users can look forward to the introduction of “Relative Rotational Charts.”
However, before delving into these innovative charts, it’s worth noting that the essential components for creating them — namely, the “RS-Ratio” and “RS-Momentum” indicators — are all set to debut in September 2023.
The Volume Rate of Change indicator measures changes in trading volume; it assists in confirming trends, spotting possible reversals, and issuing early alerts based on volume analysis; it equips traders to make well-informed decisions and manage risks effectively
The Short-Term Index (STIX) is a valuable tool for traders, offering insights into market breadth, confirming trend strength, and identifying potential reversals . . . By analyzing the ratio of advancing stocks to total stocks, STIX assists traders in making informed decisions, optimizing their entry and exit timings
The Short-Term Index (STIX) serves as a valuable tool in market analysis for assessing the intensity and scope of market trends. It provides valuable insights into whether a majority of stocks in a specific market are moving upwards or downwards, allowing traders and analysts to gauge the overall sentiment.
Continue reading “STIX (Short-Term Index) Indicator”Traders use the Arms Index (TRIN) to gain insights into market breadth and momentum, spot potential turning points in the market, with extreme readings on the index indicating potential buying or selling opportunities, thereby making it a useful contrarian indicator
The TRIN, short for “TRading INdex”, and also known as the Arms Index, holds great popularity among traders as a technical analysis tool. Its origins trace back to the early 1960s when Richard Arms, a renowned technical analyst and market commentator, developed it. The primary objective of this indicator is to gauge market breadth, as well as detect overbought and oversold conditions.
Continue reading “Arms Index (TRIN) Indicator”The Ease of Movement indicator can be a valuable tool for traders, providing insights into the relationship between price movement and volume, and helping them identify potential trend reversals and confirm breakouts to make more informed trading decisions
The Ease of Movement (EMV) is a crucial tool in technical analysis that gauges how easily prices can move in a particular direction. It considers both price and volume to assess the strength of buying or selling pressure behind price movements. To calculate EMV, the change in price is divided by the volume of shares traded. The resulting value is then smoothed using a 14-day moving average.
Continue reading “Ease of Movement Indicator”The Cumulative Volume Index is an indicator designed to identify the presence of buying and selling pressure, spot shifts in market trends and momentum, give you valuable insights into market dynamics, and help you enhance your trading results and gain confidence in your signals
One tool commonly used by traders and analysts to gauge market momentum is the Cumulative Volume Index (CVI). Developed by Donald L. Cassidy, a renowned technical analyst, in the 1960s, this tool tracks the cumulative volume over time.
Continue reading “Cumulative Volume Index”The Commodity Selection Index is a tool that traders can use to identify trends in asset markets and make informed trading decisions based on objective signals . . . in conjunction with other analysis tools and market information it can help increase profitability and minimize risk
As a trader or investor, you have a handy tool at your disposal to detect trends in commodity markets. It’s called the Commodity Selection Index (CSI), developed by Welles Wilder, who also created other popular technical analysis indicators like the Relative Strength Index (RSI), Average True Range (ATR), and the Parabolic SAR (Stop and Reverse). Traders widely use the CSI to analyze commodity markets and make informed decisions.
Continue reading “Commodity Selection Index”The Random Walk Index is a useful tool for traders like you to spot changes in market trends . . . by looking at the current price and the historical average true range, it helps you make informed decisions about when to buy or sell a security
The Random Walk Index (RWI) is a tool used by traders to determine if a security is following a significant trend. It compares the price movements of the security with random movements to make this determination. By analyzing the strength of the underlying price trend, traders can use the RWI to identify trade signals.
Continue reading “Random Walk Index Indicator”The TRIX and TEMA are technical indicators that are based on EMAs . . . and they provide traders with unique insights into the market
When it comes to technical analysis, two valuable tools that stand out are the TRIX (Triple Exponential Average) and TEMA (Triple Exponential Moving Average) indicators.
These indicators are based on exponential moving averages (EMAs), but they have different calculations and interpretations, which provide traders with unique insights into the market.
Continue reading “How are TRIX and TEMA indicators different?”