Reading Assignments: Indicators

TA & Algo Trading Course
#201

  1. The MACD (Moving Average Convergence Divergence) indicator is an oscillating indicator that is used to follow a trend. It has two moving average measurements, fast and slow. An upwards trend (buy signal) is indicated by moving above 0 and a downwards trend (sell signal) is indicated moving below 0.

  2. The Relative Strength Index oscillates between 0 and 100 and also indicates a change in trend and strength of the market, although there is more of a lag with this indicator. Above 70 indicates “overbought” and a sell signal, below 30 indicates “oversold” and buy signal.

  3. OBV (On Balance Volume) measures cumulative buy and selling pressure by adding volume on up days and substracting volume on down days. It is used to determine the strength of market trends and whether the price is at the top or bottoming out. The volume should confirm trends so if the volume is low and the price is dropping, the market is dropping and if the volume is higher and the price is flat, the top is getting near. If volume rising but price is flat, the price will rise.

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#202
  1. a technical analysis indicator that varies over time within a band (above and below a centerline; the MACD fluctuates above and below zero. It is both a trend-following and momentum indicator.

look at which side of zero the MACD lines are on in the histogram below the chart. If the MACD lines are above zero for a sustained period of time, the stock is likely trending upwards. Conversely, if the MACD lines are below zero for a sustained period of time, the trend is likely down

  1. MACD can go above and below 0, RSI is between 0 - 100. thus providing different information

  2. On-Balance volume takes a significant amount of volume information and compiles it into a single one-line indicator. The indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#203
  1. The MACD (Moving Average Convergence Divergence) is a kind of oscilaating indicator that can help traders quickly spot increasing short term momentum.
  2. MACD indicates if the trend changes. RSI indicates whether the market has just been overbought or oversold.
  3. The ON Balance Volume (OBV) indicator measures cumulating buying and selling pressure. So is the Momentum going down or Up ?
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#204
  1. MACD stands for the Moving Average Convergence Divergence, which is a kind of oscillating technical analysis indicator. It can be used to asses if things are trending upwards or downwards; if the MACD lines are sustained above zero they are trending upwards, and if the MACD lines are below zero for a sustained period of time, the trend is likely down.
  2. While both the MACD and the RSI are both oscillating indicators, RSI (Relative Strength Index) is confined between zero and 100 and shows when a bounce is due by tipping above 70 and below 30. This information shown by the RSI tells if prices are overbought and due for corrections or oversold and are due for a bounce.
  3. The On_Balance Volume (OBV) is a indicator that measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting the volume on “down” days. This can be used to asses if the price may be reaching a top or bottom. If OBV is leveling off or falling while price is rising, the top may be near; if price is falling and OBV is leveling off or rising, the bottom could be near.
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#205
  1. What is MACD and how is it used?

Moving Average Convergence Divergence, it uses 2 different time frames and when they cross over, it could be used as a sell or buy signal.

  1. What is the difference between MACD and RSI?
  • MACD uses 2 different time frames to measure from a scale of -2 to 2 and If the MACD lines are above zero for a sustained period of time, the stock is likely trending upwards. Conversely, if the MACD lines are below zero for a sustained period of time, the trend is likely down.
  • RSI take a scale from zero to 100 and it uses the terms overbought to call for a correction and oversold to call for an uptrend.
  1. What is OBV and how is it used?

On Balance Volume takes a significant amount of volume information and compiles it into a single one-line indicator. The indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#206
  1. What is MACD and how is it used?
    The moving average convergence divergence (MACD) is a kind of oscillating indicator. It is both a trend-following and momentum indicator. If the MACD lines are above zero for a sustained period of time, the stock is likely trending upwards. Conversely, if the MACD lines are below zero for a sustained period of time, the trend is likely down.
  2. What is the difference between MACD and RSI?
    The relative strength index (RSI) is another oscillating indicator but its movement is contained between zero and 100 so it provides different information than the MACD. One way to interpret the RSI is by viewing the price as “overbought”—and due for a correction—when the indicator in the histogram is above 70, and viewing the price as oversold—and due for a bounce—when the indicator is below 30.
  3. What is OBV and how is it used?
    Volume itself is a valuable indicator, and on-balance volume (OBV) takes a significant amount of volume information and compiles it into a single one-line indicator. The indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.
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#207
  1. What is MACD and how is it used?

Moving Average Convergence Divergence, it is a lagging indicator that uses two different types of moving average and their difference to indicate the trend of the market.

  1. What is the difference between MACD and RSI?

RSI is an oscillator : that means that its value is normalized between 0 and 100, while MACD has no upper or lower limit. (that’s why its called “Relative”)

  1. What is OBV and how is it used?

On-Balance-Volume is an indicator that shows the net volume : it’s going up when the price and volume are going up, and it’s going down when both go down. OBV can show the overall market sentiment : if its going up, it means that big money is accumulating.

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#208
  1. What is MACD and how is it used?

It is a kind of oscillating indicator, it varies above and under a certain line indicating trend and momentum.

  1. What is the difference between MACD and RSI?

They are both oscillating indicators, the main difference is that the MACD indicates momentum and trends whilst the RSI indicates when a given security is overbought or sversold

  1. What is OBV and how is it used?

The On Balance Volume indicator measure cumulative buying and selling pressure by adding the volume on up days and subtracting on down days. A raising price should always be accompanied by a raise in the volume, otherwise this would possibly signal an attempt of manipulation in the markets by a small group of people.

#209
  1. The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.
  2. The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock.
  3. The on-balance volume (OBV) indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.
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#210

#1.- MACD is a Moving Average that tracks an instruments Convergence (Uptrend/buy) and Divergence
(downtrend/sale) that helps traders spot short term momentum.
#2.- RSI aka Relative Strength Index is a momentum indicator that measures resent price changes to
evaluate overbought or oversold condition of that instrument…While MACD and RSI are both indicators
RSI uses 0 to 100 to express overbought vs oversold condition
#3.- OBV or OnBalanceVolume measures cumulative buy and sell volume days , creates a single line indicator that is very useful in establishing momentum direction up or down.

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#211

  1. The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.

  2. MACD is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum, while RSI is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price.

  3. The on-balance volume (OBV) indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#212

What is MACD and how is it used?
Moving Average Convergence Divergence - it’s an oscillating, trend following and momentum indicator. Can be used as a confirmation signal. It tracks a fast and a slow adjustable moving average. When the fast moving average moves above the slow moving average This can be a buy signal confirmation.

What is the difference between MACD and RSI?
The RSI ranges between 0 and 100 whereas the MACD oscillates around a zero point in the middle. It indicates over bought and over sold conditions.

What is OBV and how is it used?
Volume and momentum indicator that measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#213
  1. What is MACD and how is it used?

The MACD (Moving Average Convergence Divergence) is a short term trending and momentum oscillating indicator. There are two lines that follow along with price action, when they cross, this can be used as a buy or sell indicator. There relationship represents changes in the trend or momentum of the underlaying asset or currency that it is following.

  1. What is the difference between MACD and RSI?

RSI (Relative Strength Index) is a momentum indicator used to signal whether the underlaying asset is nearing overbought or oversold in price action. The oscillating scale for RSI is between 0 and 100. MACD ranges on either side of its zero point in the middle. MACD is a relative indicator without a defined top or bottom range.

  1. What is OBV and how is it used?

OBV (On balance volume) is an indicator that measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

Observing the OBV and current price action in relation to the trend line can indicate when a reversal may be nearing.

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#214

  1. What is MACD and how is it used?
    Mean Average Convergence Divergence, is a oscillating indicator that has a central line, when the plot is above the line the price is trending upwards, or if histogram below line it is trending down.

  2. What is the difference between MACD and RSI?
    MACD works from a central line and gives the trend of price. RSI (Relative Strength Index goes fro 0 to 100 and gives an indication of over or under price conditions and the likeness of a correction.

  3. What is OBV and how is it used?
    On Balance Volume is indicator of buying and selling pressure, it adds volume on up days and subtract on down days.

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#215

@filip

1.MACD stands for Moving Average Convergence Divergence and is an oscillating indicator of trend following and momentum, it fluctuates above and below zero, is variable.
2.Unlike MACD, RSI moves from zero to hundred, oscillates mostly between 30 below and 70 above indicating a rebound or a corection.
3.On Balance Volume measures the cumulatives tradings then it confirms trends to follow prices.
:slight_smile:

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#216
  1. Mean Average Convergence Divergence, or MACD is an oscillating indicator which perform as technical analysis indicator that varies over time within a band (above and below a centerline; the MACD fluctuates above and below zero) It is both a trend-following and momentum indicator.
  2. The difference is in the movement oscillating indicator in RSI contained between zero and one hundred, so its provide different information than MACD.
  3. On Balance Volume, or OBV is an indicator for significant amount of information and compiles it into a single one-line indicator. It is used by measuring cumulative buying and selling pressure by adding the volume on “Up” days and subtracting volume on “Down” days.
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#217

  1. It is both a trend-following and MOMENTUM indicator. Important is the zero line to make decisions

  2. shows the overbought or oversold moment.

  3. This indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#218

  1. What is MACD and how is it used?
    Moving Average Convergence Divergence, MACD is a kind of oscillating indicator. It is a technical analysis indicator that varies over time within a band above and below a centerline, in this case with the indicator MACD it varies around 0 (above and below zero).

  2. What is the difference between MACD and RSI?
    The relative strength index (RSI) is another oscillating indicator than MACD but its movement is contained between zero and 100, instead of MACD´s centerline around 0.

RSI can be interpret is by viewing the price as “overbought”—and due for a correction—when the indicator in the histogram is above 70, and viewing the price as oversold—and due for a bounce—when the indicator is below 30

  1. What is OBV and how is it used?
    on-balance volume (OBV) takes a significant amount of volume information and compiles it into a single one-line indicator. The indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.
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#219

  1. MACD is “Moving Average Convergence Divergence” and it is used as a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.

  2. The difference between MACD an RSI is that MACD is mostly used for short term movement in the market, whereas RSI is generally used for finding overbought or oversold environments.

  3. OBV is “On-Balance Volume” and it is used as an indicator that measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#220
  1. What is MACD and how is it used?
  2. What is the difference between MACD and RSI?
  3. What is OBV and how is it used?

Answer:

  1. MACD is an indicator that follows the trend and momentum of the traded instrument. It is used for measuring if the underlying instrument’s price moving upwards or downwards. If the fast line croses the slow line through and up. When it crosses through and down the slow line, it is a sell signal.
  2. RSI indicates when market is due for a correction or for a bounce, rather than indicating it’s overall trend.
  3. On-Balance Volume is a mesearment of cumulative selling and buying pressure. It adds up volume on the “up” days and subtracts on the “down” days. It shows the trends of the volume movement which can show the potential movement of the asset. You can use it to draw trending lines to see the resistance, uptrends and early warnings for downtrend.
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