Technical Charts

Overview

Technicals can be added to the chart by clicking on the ‘Technicals’ pull down menu and then selecting one or more boxes in the drop-down menu as shown in the screenshot below.

Note: The technicals only apply to the primary ticker in the chart, which is the ticker in the top left box of the chart.

ChartingTechnicals

Accumlation/Distribiution

The Accumulation Distribution Line is a volume-based indicator designed to measure the cumulative flow of money into and out of a security. It is a running total of each period’s Money Flow Volume. Use this indicator to affirm a security’s underlying trend or anticipate reversals when the indicator diverges from the security price.

ChartingTechnicals

Aroon Indicator

The Aroon indicators are shown in percentage terms and fluctuate above/below a centerline at 50, and are bound between 0 and 100. Aroon-Up measures the number of days since the last high during the specified period and Aroon-Down measures the number of days since the last low during the specified period.

ChartingTechnicals

Average Directional Index

The Average Directional Index (ADX), Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) represent a group of directional movement indicators based on positive and negative directional movement. Directional Movement is calculated by comparing the difference between two consecutive lows with the difference between their respective highs. +DI and -DI are derived from smoothed averages of these differences. ADX is derived from the smoothed averages of the difference between +DI and -DI.

ChartingTechnicals

Average True Range

Average True Range is an indicator that measures volatility. It is the moving average of the True Range of each day in the period. For each day, True Range is the greatest of the absolute value of:

  1. Current High – Current Low
  2. Current High – Previous Close
  3. Current Low – Previous Close

ChartingTechnicals

Bollinger Bands

Bollinger Bands are curves drawn in and around the price structure that define high and low on a relative basis. The standard deviation of price movement, which is a measure of volatility, is used to set the width of the bands making them fully adaptive to changing market conditions.

The defaults are bands spread above and below a 20-day simple moving average by two standard deviations. The closer the prices move to the upper band, the more overbought the ticker, and the closer the prices move to the lower band, the more oversold the ticker.

ChartingTechnicals

Exponential Moving Average

A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. This allows investors to track and respond quickly to recent price trends that might take more time to appear in an SMA. In general, the 50- and 150- EMAs are used as signals of long-term trends.

ChartingTechnicals

Keltner Channels

Keltner Channels are envelopes set above and below an exponential moving average based on price volatility. Keltner Channels use the Average True Range (ATR) to set channel distance. Keltner Channels include Upper, Middle, and Lower change lines. The middle line is the exponential moving average using the specified period. The upper line adds the Average True Rane, calculated using the specified ATR period, multiplied by the specified multiplier. The lower line subtracts this value.

ChartingTechnicals

Money Flow Index

Money Flow Index (MFI) is a momentum indicator that is used to determine the conviction in a current trend by analyzing the price and volume of a given security. The default period is set to 14 days. The MFI is range-bound between 0 and 100 and is interpreted in a similar fashion as the Relative Strength Index (RSI).

ChartingTechnicals

Moving Average Convergence Divergence

Moving Average Convergence Divergence (MACD) shows the difference between a fast and slow exponential moving average (EMA) of closing prices. The default MACD is calculated as the difference between a 12-day and 26-day EMA of the price. A 9-day EMA of the MACD, called the “signal line” is then plotted on top of the MACD, functioning as a trigger for buy and sell signals. Divergence, the difference between the MACD and the signal, is also plotted as a histogram.

ChartingTechnicals

On Balance Volume

On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator, adding volume on up days and subtracting it on down days. Look for divergences between OBV and price to predict price movements or use OBV to confirm price trends.

ChartingTechnicals

Relative Strength Index

Relative Strength Index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. The default period is set to 14 days. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.

ChartingTechnicals

Stochastic Oscillator

The Stochastic Oscillator is a momentum indicator that shows the location of the high-low range over a set number of periods. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price, and can be used to foreshadow reversals.

ChartingTechnicals

Simple Moving Average

Simple Moving Average (SMA) is a simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of periods (days) and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.

ChartingTechnicals

Volume

Displays the number of shares traded in the time frame selected. A red volume bar indicates the close price for the time period was lower than the open price. A green volume bar indicates that the close price was higher than the open price. When the price is unchanged compared to the previous price, the bar will be blue.

ChartingTechnicals

Williams %R Indicator

The Williams %R is a momentum indicator that is calculated by dividing the difference between the highest high during the specified period and the closing price by the difference between the highest high and the lowest low, then multiplied by -100. This indicator ranges from 0 to -100. A reading between 0 to -20 is considered overbought, and is shaded red in the chart. A reading between -80 to -100 is considered oversold, and is shaded green in the chart.

ChartingTechnicals


Top
Valuation Charts Ratio Charts