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CHARTS Preliminary: Subject to change as features may be added or enhanced. Controls, as shown, may not be the final version CONTENTS Item Page Opening a chart 3 Menus 4 Indicator selection 5 Price plot styles 9 Drawings 9 Configuration 11 Zoom 13 Panel sizing 14 Times plotted 15 Chart Characteristics & Available Indicators & Drawings 16 Indicators – description and parameters 20 Indicator on indicator 45 2 Opening Chart Open a chart by selecting chart on the toolbar, from the main menu as window/create new / charts or by right clicking on a symbol and selecting charts from the menu. Note that a chart opened via the right click is only considered temporary and cannot be assigned to a group, linked or saved between sessions. AIQ Chart Chart main menu rt click 3 After the chart is opened, you will see a chart toolbar which can be used to change the type of chart, time periods, open the indicator manager, etc. A new chart will display all data for entire period See the toolbar guide for a full set of instructions available. You may also set the symbol, time period and duration using the header panel, the toolbar choices and/or the linkage dropdown You can also right mouse click on the new chart to see the available menu choices. The view menu will display or hide the drawing toolbar, shown on left below, the zoom/move toolbar on the top and the scroll bar at bottom. The scroll bar will only be present if all the time periods are not visible on the chart. In the display menu you have a choice of seeing all times during the time period you select in configure/time or only seeing periods when trades have taken place. We recommend not checking the “show non activity periods” so that indicators will not become distorted. You can also turn on the cross hairs and data window here or from the toolbar. The Manage menu allows you to open the indicator manager, the drawing manager, delete or change the colors of overlay symbols and set the colors for the various price styles 4 The indicator menu item opens the indicator manager which allows you to add new or modify existing indicators. A list of available indicators, the parameters used and a short description is provided at the end of this document. When you select an indicator, the right side of the indicator manager will display specific inputs for the indicator. It will also ask where you want to display the chart. The choices are on the price panel, create a new panel or display on another existing panel (a panel with an existing indicator). If you are going to display in a panel with existing data, you have a choice of overlaying the indicator without changing the existing price scale (the new indicator will show in the panel without values and not alter the price scale) or sharing the scale and all indicators will be plotted at their scale value From the applied indicators tab, you see a list of the indicators already on the chart and you can change the parameters, the plot location, color, and overlay for the selected indicator. 5 Indicators can also be moved from one panel to another by holding the left mouse button down on an indicator and dragging it to another panel Additional color selections are being added for indicators which plot more than 1 item, so each items can be displayed in a different color Indicators can be placed in their own subpanel, displayed in combination with other indicators in one panel with the y scale showing the value of each indicator (no overlay) or with other indicators where the main indicator sets the y scale and the other indicators fill the panel with the shape but do not use the actual y scale (overlay) The following chart shows the Bollinger band width and Bollinger %B both in the same panel without the overlay and the Bollinger Bandwidth in its own panel. Note how when both are displayed in the same panel the bandwidth appears as a flat line since the values are small Here is the same chart with the overlay on for the Bollinger Band Width in the 2nd panel. Note how the shape of the indicator now displays but without corresponding to the value scale. 6 In the charts it is also possible to display an indicator on another displayed indicator. This new derived indicator can be displayed in a new panel or in an existing panel. The following shows how the indicator is added and the resulting display. 7 8 The style manager menu is used toselect the colors to be used for the price plot as well as set the parameters needed for specific price plotting styles. 9 The style menu allows you to select the type price chart you want displayed The drawing menu and drawing toolbar show the various drawing tools available. If you select color, you can choose the color to be used for the drawing before it is drawn. 10 Some drawing tools have the ability to be edited after they are drawn on the chart. To edit a drawn item, right click on the chart, select drawing and then manage drawing. Depending upon the drawn item selected, additional editing windows will open where you can select values to be used and displayed/hidden (Fibonacci retracement, regression line, etc) 11 The configure time menu specifies the time you want the chart to start and stop plotting on each trading day. Note however that unless you have the plot non activity periods checked in the display menu these entire times will not appear on the chart unless there was a trade during the period. Conversely, if there was a trade outside 12 of the start and end time period, it will not appear on the chart. The bar interval can be changed either on this menu or on the chart itself. The chart configuration color sets the chart background, x and y axis type, grid line, and price plot body colors The value view settings determine what is shown in the data window and where it should be located when it is selected. As sample data view is shown below The y axis configuration allows you to set the scale of the price scale so it can show the current data in the full panel, fixed high and low values or other alternatives shown in the selection. 13 Zoom menu on chart From left on menu File/save options being developed Move chart to earliest time Move chart to earlier time period Move chart to later time period Move chart to latest time Zoom in by reducing number of periods displayed Zoom out by increasing number of periods displayed Zoom in using mouse to define period (see below for instructions) Zoom out to show all data Show cross hairs To zoom in using mouse, select the zoom in icon then left mouse click on the first bar to be used in the zoom in range. Release the mouse and move left or right so the zoom in region is highlighted. (Blue region in following chart). Right click and chart will redisplay with the zoomed in area only (See 2nd chart below) 14 Each panel can be sized independently by moving mouse over panel separator until it shows the up and down arrow, then hold down left mouse button and move the separator up or down to change size 15 The following shows a plot of a chart from 6:30 am until 8:01 pm with show non activity periods checked. Not the empty spaces on the chart compared to the chart above. Also note the difference in the indicator display. 16 Chart Characteristics & Available Indicators & Drawings periods available tick from time opened intraday up to 30 days daily up to 5 years weekly/monthly up to 50 years price plot new AIQ line Y Y bar Y Y candle Y Y hollow candle Y Y candle volume Y equivolume Y equivolume shadow Y point & figure Y Y Kagi Y Renko Y three line break Y overlay multiple future % symbols chng 1 symbol hide/show non activity periods Y show only times to display flexible 9:30-4:00; 1st-last trade drawing new AIQ pointer Y Y always line / trendline parallel lines # points extend Y extend ellipse Y speed lines Y gann fan Y Y Fibonacci arcs Y Y Fibonacci always retracements select / input extend Y extend Fibonacci time zones Y Y tirone levels Y quadrant lines Y raff regression parallel lines Y parallel lines # std always regression line deviations extend Y extend error channels Y rectangle Y 17 buy Y Y sell Y Y exit Y text Y Y Fibonacci fan Y Y vertical line Y horizontal line Y cross hairs Y on Ne indicato Indicators w AIQ r Parm # 1 2 3 4 5 6 Accumulative limit move Swing Index Y value AIQ Bands Y Aroon up down Y period Aroon Oscillator Y period Bollinger Bands (high, low, median) Y Y Y source period ma type std dev Bollinger band width Y Y source period ma type std dev Bollinger band % B Y Y source period ma type std dev Cash flow accumulation Y Y none Chaikin Money Flow Y period rate of Chaikin Volatility Y period change ma type Chande Momentum Oscillator Y Y source period Commodity Channel Index Y Y period Cumulative Y Y source Detrended Price Oscillator Y Y source period ma type Difference Y Y source period Directional Movement DI+ DI- ADX ADXR Y Y period adxr period Ease Of Movement Y period ma type forecast oscillator Y force index Y period Fractal chaos bands Y period High Low Bands Y period High Minus Low Y none highest x periods Y Y Historical Volatility Y Y Y source period bar history std dev keltner channels Y ema periods atr periods multiplier 18 lowest x periods Y Y MACD Y Y long cycle short cycle signal period MACD histogram (difference) Y Y long cycle short cycle signal period Mass Index Y period Median Price Y none Momentum Oscillator Y Y source period Momentum - point and % difference Y point Y source period pt or % Money Flow Index Y period Money Flow RSI Y Money Flow Oscillator Y Moving Average simple Y Y Y source period type Moving Average exponential Y Y Y Moving Average time series Y Y Moving Average triangular Y Y Moving Average variable Y Y Moving Average weighted Y Y Moving Average displaced Y Y Moving Average Envelope Y Y Y source period type pct (shift) Negative Volume Index Y Y source On Balance Volume Y Y source On Balance Volume Percent Y Parabolic SAR Y Y min af max af Performance Index Y source Phase Y pivot points & support/resist Y Positive Volume Index Y Y source Price Oscillator Y Y source long cycle short cycle ma type Price ROC (rate of change) Y Y source period Price Volume Trend Y Y source q stick Y Rainbow Oscillator Y Y source level ma type Regression Line – Low std Constant Distance Y Y source periods Up std dev dev Regression Forecast Y Y source periods Regression Slope Y Y source periods Regression intercept Y Y source periods Regression R- Squared Y Y source periods Relative Strength Index Y Y Y source periods Relative Strength Index - AIQ Y Split Volume Y Split Volume - Moving Average Y Stochastic %k Dbl %D ma Momentum Index Y Y % k period %k smooth Smooth %D period ma type type Stochastic Oscillator Y Y %k period %k slowing %D period ma type 19 limit move Swing Index Y value Trading Channel Index Y Time Series Forecast Y TRIX Y Y source period True Range Y none Average true range Y Typical Price Y none Ultimate Oscillator Y cycle1 cycle2 cycle3 Volume Accumulation Percent Y Vertical Horizontal Filter Y Y source period VIDYA moving average Y Y source period R2 scale Volume Y Y none Volume Oscillator Y Y source short term long term pts or % Volume ROC Y period Weighted Close Y none Williams %R Y periods Williams Accumulat Distrib Y Y none Zig Zag Y Indicator on other inputs are same as indicator indicator Y source is indicator to be used as basis. being used Color studies Y 20 Technical Indicator Help Accumulation Swing Index Overview: The Accumulation Swing Index (Wilder) is a cumulative total of the Swing Index. Interpretation: The Accumulation Swing Index may be analyzed using technical indicators, line studies, and chart patterns, as an alternative view of price action. Parameters Limit Move Value AIQ Bands Overview The AIQ Bands are designed to encompass 90% of price activity Interpretation The AIQ Bands indicate overextended prices. A price above the upper trading band is a possible selling opportunity. A price below the lower trading band is possibly a buying opportunity Parameters None Aroon Index and Oscillator Overview: The Aroon indicator is often used to determine whether a stock is trending or not and how stable the trend is. Interpretation: Trends are determined by extreme values (above 80) of both lines (Aroon up and Aroon down), whereas unstable prices are determined when both lines are low (less than 20). Parameters Periods Bollinger Bands 21 Overview: Bollinger Bands are similar in comparison to moving average envelopes. Bollinger Bands are calculated using standard deviations instead of shifting bands by a fixed percentage. Interpretation: Bollinger Bands (as with most bands) can be imposed over an actual price or another indicator. When prices rise above the upper band or fall below the lower band, a change in direction may occur when the price penetrates the band after a small reversal from the opposite direction. Parameters Source Periods Moving Average Type Standard Deviations Bollinger Band Width Overview: Bollinger Bands Width measures the distance between the upper and lower Bolling. Interpretation: Sharp moves in price tend to occur after the bands tighten. The first increase in volatility after a period of reduced volatility tends to mark the start of the next move. Parameters Source Periods Moving Average Type Standard Deviations Bollinger Band % B Overview: Bollinger Band % B indicates where the value lies in relation to the upper and lower Bollinger Bands. Interpretation: A value of 50% indicates the value is at the midpoint, while higher values indicate it is above the midpoint and lesser values below. Values over 100% or less than 0 indicate the value is outside the normal range. Moving outside the bands signals a continuation of the move until the prices move inside the bands 22 Parameters Source Periods Moving Average Type Standard Deviations Cashflow Accumulation Overview: This is an accumulation distribution indicator. It is the cumulative summation of price change * volume for each period Interpretation: It is the shape of the indicator which is important. Important are the trends and trend breaks, and nonconfirmations (highs and lows do not agree) and divergences (trends do not agree) with price action. Parameters: none Chaikin Money Flow Overview: The Chaikin Money Flow oscillator is a momentum indicator that spots buying and selling by calculating price and volume together. This indicator is based upon Chaikin Accumulation/Distribution, which is in turn based upon the premise that if a stock closes above its midpoint [(high+low)/2] for the day then there was accumulation that day, and if it closes below its midpoint, then there was distribution that day. Parameters Periods Chaikin Volatility Oscillator Overview: The Chaikin Volatility Oscillator is a moving average derivative of the Accumulation/Distribution index. Interpretation: The Chaikin Volatility Oscillator adjusts with respect to volatility, independent of long-term price action. Parameters: Periods Rate Of Change 23 Moving Average Type Chande Momentum Oscillator (CMO) Overview: The Chande Momentum Oscillator (Chande) is an advanced momentum oscillator derived from linear regression. Interpretation: Increasingly high values of CMO may indicate that prices are trending strongly upwards. Conversely, increasingly low values of CMO may indicate that prices are trending strongly downwards. CMO is related to MACD and Price Rate of Change (ROC). Parameters Source Periods Commodity Channel Index Overview: The CCI was developed by Donald Lambert and is a price momentum indicator. The purpose of this indicator is to identify cyclical turns and can be applied to stocks as well as commodities. Interpretation: This indicator oscillates between an overbought and oversold condition and works best in a sideways market. The CCI trading strategy is to buy when the index rises above 100% and sell when it falls back below 100%. On the short side, sell short when the CCI falls below -100% and cover shorts when it rises above -100% Parameters Periods Cumulative Overview: Cumulative is the summation of the source data item starting from the first period on the chart Interpretation: This indicator can be used to visually analyze trends over time Parameters Source Periods (fixed at 1) 24 Detrended Price Oscillator Overview: The Detrended Price Oscillator is used when long-term trends or outliers must be removed from prices or index indicators. Interpretation: This indicator is often used to supplement a standard price chart. Other indicators can be plotted over the Detrended Price Oscillator. Parameters: Source Periods Moving Average Type Difference Overview: Difference is used to obtain the difference in the value of the source between the present period and the period periods ago Parameters: Source Periods Directional Movement System (DI+, DI-, ADX, ADXR) Overview: The Welles Wilder's Directional Movement System contains five indicators; ADX, DI+, DI-, DX, and ADXR. The ADX (Average Directional Movement Index) is an indicator of how much the market is trending, either up or down: the higher the ADX line, the more the market is trending and the more suitable it becomes for a trend-following system. This indicator consists of two lines: DI+ and DI-, the first one being a measure of uptrend and the second one a measure of downtrend. Detailed information about this indicator and formulas can be found in Welles Wilder's book, "New Concepts in Technical Trading Systems". The standard Directional Movement System draws a 14 period D1+ and a 14 period DI- in the same chart panel. ADX is also sometimes shown in the same chart panel. Interpretation: A buy signal is given when DI+ crosses over DI-, a sell signal is given when DI- crosses over DI+. Parameters Periods ADXR Periods 25 Display ADX ADXR DI+ DI- Ease of Movement Overview: The Ease of Movement oscillator shows a unique relationship between price change and volume. Interpretation: The Ease of Movement oscillator rises when prices are trending upwards under low volume, and likewise, the Ease of Movement oscillator falls when prices are trending downwards under low volume. Parameters: Periods Moving Average Type Force Index Overview: The Force Index is an indicator that uses price and volume to assess the power behind a move or identify possible turning points Interpretation: A big advance on heavy volume shows a strong commitment from buyers. Likewise, a big decline on heavy volume shows a strong commitment from sellers. The Force Indicator indicates buying and selling pressure Parameters: Periods Forecast Oscillator Overview: The Forecast oscillator plots the difference between the forecast prices and the actual prices, using an x period linear regression line. If Interpretation: If the forecast oscillator is above zero, it means that the actual price is stronger than that predicted by the linear regression line Parameters Source Periods Fractal Chaos Bands 26 Overview: The chaotic nature of stock market movements explains why it is sometimes difficult to distinguish hourly charts from monthly charts if the time scale is not given. The patterns are similar regardless of the time resolution. Like the chambers of the nautilus, each level is like the one before it, but the size is different. To determine what is happening in the current level of resolution, the fractal chaos band indicator can be used to examine these patterns. Parameters: Periods High Low Bands Overview: High Low Bands consist of triangular moving averages calculated from the underling price, shifted up and down by a fixed percentage, and include a median value. Interpretation: When prices rise above the upper band or fall below the lower band, a change in direction may occur when the price penetrates the band after a small reversal from the opposite direction. Parameters Periods High Minus Low Overview: Returns the high price minus the low price. Parameters: none Highest Overview: Returns the highest value of the source in the past periods. Parameters: Source Periods Historical Volatility Index Overview: Historical volatility is the log-normal standard deviation. The Historical Volatility Index is based on the book by Don Fishback, "Odds: 27 The Key to 90% Winners". This formula will output a 3~-day historical volatility index between 1 and 0: Stdev(Log(Close I Close Yesterday), 30) * Sqrt(365) Note that some traders use 252 instead of 365 for the bar history that is used in the square root calculation. The Log value is a natural log (ie LoglO). Interpretation: Similar to the coefficient of determination, the higher the value is, the more volatile the stock is. Parameters: Source (usually the close price) Periods BarHistory StandardDeviations Keltner Channels Overview: Keltner Channels are volatility-based envelopes set above and below an exponential moving average. Interpretation: Keltner Channels are similar to Bollinger Bands except instead of using volatility they use the average true range. Parameters: EMA periods ATR periods Multiplier Lowest Overview: Returns the lowest value of the source in the past periods. . Parameters: Source Periods 28 Moving Average Convergence I Divergence (MACD) Overview: The MACD is a moving average oscillator that shows potential overbought/oversold phases of market fluctuation. The MACD is a calculation of two moving averages of the underlying price/indicator. The first component is a line which represents the difference between two moving averages, each computed for a different time period. The second component, the signal line, is an exponential average of the first component. Interpretation: Buy/Sell interpretations may be derived from crossovers (calculated from the Signal Periods parameter), overbought/oversold levels of the MACD and divergences between MACD and actual price. Parameters: Long Cycle Short Cycle Signal Periods Moving Average Convergence I Divergence (MACD) Histogram Overview: The MACD is a moving average oscillator that shows potential overbought/oversold phases of market fluctuation. The MACD is a calculation of two moving averages of the underlying price/indicator. The histogram is simply a bar graph of the MACD minus the MACD Signal line. Interpretation: Buy/Sell interpretations may be derived from crossovers (calculated from the Signal Periods parameter), overbought/oversold levels of the MACD and divergences between MACD and actual price. Parameters: Long Cycle Short Cycle Signal Periods Mass Index Overview: The Mass Index identifies price changes by indexing the narrowing and widening change between high and low prices. Interpretation: According to the inventor of the Mass Index, reversals may occur when a 25-period Mass Index rises above 27 or falls below 26.5. 29 Parameters: Periods Median Price Overview: A Median Price is simply an average of one period's high and low values. Interpretation: A Median Price is often used as an alternative way of viewing price action, and also as a component for calculating other indicators. Parameters: None Momentum (point & percent) Overview: Momentum measures the change in the value of the source item either in points or percent over the period. Interpretation: Positive and high values of momentum indicate a strong positive trend exists while negative and large negative values indicate a strong negative trend exists. Changes in the slope indicate the trend may be changing. Parameters Source Periods Points or Percent Momentum Oscillator Overview: The momentum indicator calculates change of over a specified length of time as a ratio. Interpretation: Increasingly high values of the momentum oscillator may indicate that prices are trending strongly upwards. The momentum oscillator is closely related to MACD and Price Rate of Change (ROC). Parameters: Source Periods 30 Money Flow Index Overview: The Money Flow Index measures money flow of a security, using volume and price for calculations. Interpretation: Market bottoms below 20 and tops above 80. Divergence of price and Money Flow Index are also used. Parameters Periods Money Flow RSI Overview: The Money Flow RSI is a short term indicator which attempts to measure the flow of money into or out of a security. Interpretation: Money flow RSI is normalized to a scale of 0 to 100. Money flow values above 80 indicate a top. Extreme values over 90 indicate a situation where overbuying is evident, which is usually followed by a selloff. Values less than 20 indicate a bottom and values less than 10 indicate an oversold situation. Parameters Periods Money Flow Oscillator Overview: The Money Flow Oscillator is the difference between the current value of Money Flow and the value periods ago. Interpretation: When the Money Flow Oscillator is positive, it means that money flow is increasing over time. When the indicator is negative, it means that money is flowing out and demand is decreasing. Parameters Periods Moving Averages Interpretation: A Moving Average is most often used to average values for a smoother representation of the underlying price or indicator. Parameters Source 31 Periods Type Average Simple Moving Average Overview: The Simple Moving Average is simply an average of values over a specified period of time. Exponential Moving Average Overview: An Exponential Moving Average is similar to a Simple Moving Average. An EMA is calculated by applying a small percentage of the current value to the previous value. An EMA applies more weight to recent values. Time Series Moving Average Overview: A Time Series Moving Average is similar to a Simple Moving Average/ except that values are derived from linear regression forecast Triangular Moving Average Overview: The Triangular Moving Average is similar to a Simple Moving Average, except that more weight is given to the price in the middle of the moving average periods. Variable Moving Average Overview: A Variable Moving Average is an exponential moving average that adjusts to volatility. Weighted Moving Average Overview: A Weighted Moving Average places more weight on recent values and less weight on older values. 32 Moving Averages - Displaced Overview The displaced moving average is created by shifting the moving averages forward or backwards in time by a specific period Interpretation: The displaced moving average is used to shift the moving average backwards to contain the trend better or to shift forward in order to become a leading indicator. Parameters Source Periods Type Average Displacement Period (can be positive or negative) Moving Average Envelope Overview: Moving Average Envelopes consist of moving averages calculated from the underling price, shifted up and down by a fixed percentage. Interpretation: Moving Average Envelopes (or trading bands) can be imposed over an actual price or another indicator. When prices rise above the upper band or fall below the lower band, a change in direction may occur when the price penetrates the band after a small reversal from the opposite direction. Parameters Source Periods Type Average Shift Shift is value specifying the percentage of shift for each moving average from the actual values. Negative Volume Index 33 Overview: The Negative Volume Index shows focus on periods when volume decreases from the previous period. Interpretation: The interpretation of the Negative Volume Index is that well-informed investors are buying when the index falls and uninformed investors are buying when the index rises. Parameters Source On Balance Volume Overview: The On Balance Volume indicator shows a relationship of price and volume as a momentum index. Interpretation: On Balance Volume index generally precedes actual price movements. The premise is that well-informed investors are buying when the index rises and uninformed investors are buying when the index falls. Parameters Source On Balance Volume Percentage Overview: The On Balance Volume Percentage indicator shows the OBV as a percentage of total volume. Interpretation: On Balance Volume Percentage can be used to see divergences when prices are making new highs or lows and the indicator is not confirming. Another signal that can be generated is when the OBV % crosses the zero line – crossing from negative to positive is a buy signal and from positive to negative is a sell signal Parameters Periods Parabolic SAR Overview: The Parabolic SAR was developed by Welles Wilder. This indicator is always in the market (whenever a position is closed, an opposing position is taken). The Parabolic SAR indicator is most often used to set trailing price stops. A stop and reversal (SAR) occurs when the price penetrates a Parabolic SAR level. Parameters: Min AF (accumulation factor) 34 Max AF (accumulation factor) Performance Index Overview: The Performance indicator calculates price performance as a normalized percentage. Interpretation: A Performance indicator shows the price of a security as a normalized value. If the Performance indicator shows plus 50, then the price of the underlying security has increased 50% since the start of the Performance indicator calculations. Conversely, if the indictor shows minus 50, then the price of the underlying security has decreased 50% since the start of the Performance indicator calculations. Parameter Source Phase Overview: The Phase indicator calculates is used by AIQ as a filter of Expert Rating signals. Interpretation: When the direction of Phase agrees with an Expert Rating signal, the signal is considered to be confirmed by the Phase. Parameter Source Pivot Points and Lines Overview: Pivot points are used to find intraday support/resistance levels Interpretation It is believed that when a price is below a pivot or pivot support/resistance and breaks up through it then it’s a buy signal (or vice versa for a sell signal). Parameters: None Positive Volume Index Overview: 35 The Positive Volume Index shows focus on periods when volume increases from the previous period. Interpretation: The interpretation of the Positive Volume Index is that many investors are buying when the index rises, and selling when the index falls. Parameters: Source Price Oscillator Overview: The Price Oscillator shows a spread of two moving averages. Interpretation: The Price Oscillator is basically a moving average spread. Buying usually occurs when the oscillator rises, and conversely, selling usually occurs when the oscillator falls. Parameters Source Long Cycle Short Cycle Moving Average Type Price Rate of Change (ROC) Overview: The Price ROC shows the difference between the current price and the price one or more periods in the past. Interpretation: A 12-day Price ROC is most often used as an overbought/oversold indicator. Parameters: Source Periods Price and Volume Trend Overview: The Price and Volume Trend index is closely related to the On Balance Volume index. 36 Interpretation: The Price and Volume Trend index generally precedes actual price movements. The premise is that well-informed investors are buying when the index rises and uninformed investors are buying when the index falls. Parameters: Source Q Stick Overview: Qstick Indicator was developed by Tushar Chande as a method to quantify candlestick charts. Interpretation: Qstick values below zero indicate a majority of black candlesticks (over the time periods specified) and therefore a bearish bias for the security. Qstick values above zero indicate a majority of white candlesticks (over the time periods specified) and therefore a bullish bias for the security. Parameters: Periods Rainbow Oscillator Overview: The rainbow oscillator is based upon multiple time frames of a moving average. Interpretation: When values stay above 80 or below 20, the trend may reverse suddenly. Parameters: Source Levels Moving Average Type Regression Forecast Overview: Linear regression is a common statistical method used to forecast values using least squares fit. Interpretation: The regression forecast is the value projected for the current period from the regression 37 Parameters: Source Periods Regression Slope Overview: The regression slope is the slope of the regression line for the current period derived from the regression over the past periods Interpretation: The higher the slope, the greater the trend over the past periods. A positive slope indicates an upward trend; a negative slope indicates a downward trend Parameters: Source Periods Regression Intercept Overview: The regression intercept shows the value of the regression line for the first point of the period in the regression. It is plotted at the last point used in the regression Parameters: Source Periods Regression R-Squared Overview: R squared is an indication of the goodness of fit of the data point to the regression line. . Interpretation: A R squared of 1.00 indicates that all the data perfectly fits the regression line while lower numbers indicate progressively lower fits of the data to the line. Parameters: Source Periods 38 Relative Strength Index (RSI) Overview: The RSI (Wilder) is a popular indicator that shows comparative price strength within a single security. Interpretation: The most widely used method for interpreting the RSI is price/RSI divergence, support/resistance levels and RSI chart formations. The index also signals over bought and oversold conditions. A value over 70 indicates an overbought condition and a value under 30 indicates an oversold condition. Parameters: Source Periods Relative Strength Index (RSI) - AIQ Overview: The RSI – AIQ uses an exponentially smoothed average for the calculation Interpretation: Same as RSI. Parameters: Periods Split Volume Overview: Split Volume separates volume into two components – up volume and down volume. On days when price advances, volume is charted above the line; on declining days, volume is plotted below. Interpretation: A cluster of up days following a price decline is usually bullish and a cluster of days below the center line after an uptrend is often bearish. Parameters: None Split Volume Moving Average Overview: 39 Split Volume Moving Average is an exponentially smoothed moving average of Split Volume. Interpretation: The pattern to look for is a nonconfirmation between price movements and movements of this indicator. When there.is divergence, the direction of this indicator will often signal the next direction in price action. Parameters: Periods Stochastic Momentum Index Overview: The Stochastic Momentum Index, developed by William Blau, first appeared in the January 1993 issue of Stocks & Commodities magazine. This indicator plots the closeness relative to the midpoint of the recent high/low range. Interpretation: The Stochastic Momentum Index has two components: %K and %D. %K is 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 is to buy when either component rises above 40 or sell when either component falls below 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. Parameters %K Periods %K Smoothing %K Double Smoothing %D Periods Moving Average Type %D Moving Average Type The most commonly used arguments are 13 for %K periods, 25 for %K smoothing, 2 for %K double smoothing, and 9 for %D periods. Stochastic Oscillator Overview: The Stochastic Oscillator is a popular indicator that shows where a security's price has closed in proportion to its closing price range over a specified period of time. Interpretation: The Stochastic Oscillator has two components: %K and %D. %K is 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 Oscillator is to buy when either component rises above 80 or sell when either component falls below 20. Another way to interpret the Stochastic Oscillator is to buy when %K rises above %D, and conversely, sell when %K falls below %D. 40 Parameters %K Periods %K Slowing %D Periods Moving Average Type The most commonly used arguments are 9 for %K periods/ 3 for %K slowing periods and 3 for %D smoothing. Swing Index Overview: The Swing Index (Wilder) is a popular indicator that shows comparative price strength within a single security by comparing the current open/ high/ low and close prices with previous prices. Interpretation: The Swing Index is a component of the Accumulation Swing Index Parameters: Limit Move Value TRIX Overview: TRIX is a momentum oscillator that shows the rate of change of an exponentially averaged closing price. Interpretation: The most common interpretation of the TRIX oscillator is to buy when the oscillator rises and sell when the oscillator falls. 3,8 and 14 period moving averages are often used to smooth the TRIX oscillator. Parameters: Source Periods Trading Channel Index Overview: The Trading Channel Index identifies changes in price direction. The TCI is a slowed adaptation of the CCI more useful for equity trading. Interpretation: A simple rule is not to take a position against the direction of the TCI. The TCI is a very short term and responsive indicator and is likely 41 to change in a short period of time Parameter: Channel Periods Average Periods True Range Overview: True Range measures the extreme price movement from the close of the prior period through the current period. Interpretation: The true range is a measure of how much movement is experienced from one period through the next. A high true range would indicate a good candidate for short term trading. Parameter: None Average True Range Overview: Average True Range measures the average of true range over the indicated period: Interpretation: The true range is a measure of how much movement is experienced from one period through the next. A high average true range would indicate a good candidate for short term trading since the range remains high over the measured period. Parameter: Periods Typical Price Overview: A Typical Price is simply an average of one period's high, low and close values. Interpretation: A Typical Price is often used as an alternative way of viewing price action, and also as a component for calculating other indicators. Parameter: None 42 Ultimate Oscillator Overview: The Ultimate Oscillator compares prices with three oscillators, using three different periods for calculations. Interpretation: The most popular interpretation of the Ultimate Oscillator is price/indicator divergence. Parameters: Cycle 1 Cycle 2 Cycle 3 Vertical Horizontal Filter Overview: The Vertical Horizontal Filter (VHF) identifies whether a market is in a trending or choppy movement phase. Interpretation: The VHF indicator is most commonly used as an indicator of market volatility. It is also frequently used as a component for other technical indicators. Parameters: Source Periods VIDYA Moving Average Overview: VIDYA (Volatility Index Dynamic Average), developed by Chan de, is a moving average derived from linear regression R2. Interpretation: A Moving Average is most often used to average values for a smoother representation of the underlying price or indicator. Because VIDYA is a derivative of linear regression, it quickly adapts to volatility. Parameters: Source Periods R2 Scale R2Scaie is a double value specifying the R-Squared scale to use in the linear regression calculations. Chande recommends a value between 0.5 and 0.8 (default value is 0.65). 43 Volume Accumulation Percentage Overview: The Volume Accumulation Percentage is a percentage of total volume resulting from buying, or accumulation, averaged over a specific time period. Interpretation:. The Volume Accumulation Percentage is a measure of buying pressure as opposed to selling pressure. A buy signal is produced when the VAPct turns positive and a sell signal when it turns negative. . Parameters: Short Term Period Long Term Period Points Or Percent (output scale type) Volume Oscillator Overview: The Volume Oscillator shows a spread of two different moving averages of volume over a specified period of time. Interpretation: The Volume Oscillator offers a clear view of whether or not volume is increasing or decreasing. Parameters: Short Term Period Long Term Period Points Or Percent (output scale type) Volume Rate of Change (ROC) Overview: The Volume Rate of Change indicator shows clearly whether or not volume is trending in one direction or another. Interpretation: Sharp Volume ROC increases may signal price breakouts. Parameters: Periods 44 Weighted Close Overview: Weighted Close is an average of each day's open, high, low, and close, where more weight is placed on the close. Interpretation: The Weighted Close indicator is a simple method that offers a Simplistic view of market prices. Parameter: None Williams' %R Overview: Williams' %R measures overbought/oversold levels. Interpretation: The most widely used method for interpreting Williams' %R is to buy when the indicator rises above 80 or sell when the indicator falls below 20. Parameters: Periods Williams' Accumulation/Distribution Overview: The Accumulation/Distribution indicator shows a relationship of price and volume. Interpretation: When the indicator is rising, the security is said to be accumulating. Conversely, when the indicator is falling, the security is said to being distributing. Prices may reverse when the indicator converges with price. Parameter: None Zig Zag Overview: Zig Zag reduces price action to a series of straight lines connecting highs and lows in closing prices. Interpretation: Zig Zag removes the randow aspect of prices and allows the user to concentrate on the successive major moves and their duration 45 within a wave Parameter: Percent difference between successive highs and lows. Indicator on Indicator The following indicators can use other indicators as a source Bollinger Bands (high, low, median) Moving Average - variable Bollinger band width Moving Average – weighted Bollinger band % B Moving Average displaced Chande Momentum Oscillator Moving Average Envelope Cumulative Price Oscillator Detrended Price Oscillator Price ROC (rate of change) Difference Rainbow Oscillator highest x periods Regression Line Historical Volatility Regression Forecast lowest x periods Regression Slope Momentum Oscillator Regression intercept Momentum - point and % difference Regression R-Squared Moving Average - simple Relative Strength Index Moving Average - exponential TRIX Moving Average – time series Vertical Horizontal Filter Moving Average - triangular VIDYA moving average 46
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