Reading Assignments: Indicators

  1. What is MACD and how is it used?
    The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.
  2. What is the difference between MACD and RSI?
    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. What is OBV and how is it used?
    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.
1 Like

What is MACD and how is it used?
It is an indicator that changes over a period of time. If the MACD lines are above zero then the trend Is most likely going to be an upward trend and if the MACD lines are below zero then the trend is going to be downward. This is useful because people know when to buy, when the line is above zero and sell when the line is below zero.

  • What is the difference between MACD and RSI?
    RSI is information only from 0-100, unlike MACD. RSI is focused on the overbought and oversold signals. If a value is above 70 then that is oversold, and a value below 30 is overbought. RSI is about signals and this indicates when people should buy, and MACD uses trends for people to know when to buy and sell.

  • What is OBV and how is it used?
    OBV is a line that shows the volume and confirms trends. If a price is rising and falling, it is confirmed by OBV.

1 Like
  1. What is MACD and how is it used?
    MACD is Moving Average Convergence divergence, and it’s a oscillating indicator that help traders quickly spot increasing short term momentum.
  2. What is the difference between MACD and RSI?
    So MACD has lines that fluctuate above and below 0 and uses this method to determine the likely momentum trend and RSI fluctuates from 0 to 100 and the number determine whether the price of a instrument was overbought or oversold which can then help the trader to decide his/her entries
  3. What is OBV and how is it used?
    On balance volume is a indicator that measures cumulative buying and selling pressure by adding the volume on up days and subtracting volume on down days to confirm trends.
1 Like
  1. MACD is an oscillating, trend-following, momentum indicator. It helps the trader spot increasing short term momentum.

  2. RSI’s scale limits are 0 and 100 and indicate the magnitude of recent price changes, providing insight as to whether an asset is overbought or oversold. The 50 (center) line on RSI can be used to help predict potential reversals in price action.

MACD (Moving Average Convergence Divergence) uses a pair of lines, fast and slow which reflect moving averages on user defined timescales, plotted over time. As the market moves, the lines will oscillate up and down on a zero centered scale, indicating trend and potential reversals in price action.

  1. OBV - On Balance Volume measures cumulative buying and selling pressure by adding volume on up days and subtracting volume on down days. An potential application of this indicator would be if the price is trending upward and OBV is flat or falling, the price may be nearing a top.
1 Like
  1. What is MACD and how is it used?
    The moving average convergence divergence (MACD) is a kind of oscillating indicator. An oscillating indicator is 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.

One basic MACD strategy is to 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. What is the difference between MACD and RSI?
  • The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.
  • 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.
  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.
1 Like
  1. What is MACD and how is it used?
    The moving average convergence divergence (MACD) is a kind of oscillating indicator. An oscillating indicator is 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.

  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 that gives the average by taking over a specific period of time–10 days, 20 minutes, 30 weeks, or any time period the trader chooses.

  3. 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.
    Ideally, the volume should confirm trends. A rising price should be accompanied by a rising OBV; a falling price should be accompanied by a falling OBV.

1 Like
  1. What is MACD and how is it used?
    The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.
    One basic MACD strategy is to 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.
    Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

  2. What is the difference between MACD and RSI?
    The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.​​​​​​​
    The MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows. These two indicators are often used together to provide analysts a more complete technical picture of a market.
    RSI measures how much force the bulls provided during the period looked at vs how much force the bears provided during the same period

  3. 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.
    Granville believed that volume was the key force behind markets and designed OBV to project when major moves in the markets would occur based on volume changes
    Ideally, the volume should confirm trends. A rising price should be accompanied by a rising OBV; a falling price should be accompanied by a falling OBV

1 Like
  1. What is MACD and how is it used?
    Moving Average Convergence Divergence: is a kind of oscillating 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 Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

  2. What is the difference between MACD and RSI?
    MACD fluctuates above and below zero. RSI fluctuates between 0 and 100.

  3. 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. he indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.
    Ideally, the volume should confirm trends. A rising price should be accompanied by a rising OBV; a falling price should be accompanied by a falling OBV.

1 Like

MACD is a kind of oscillating indicator. An oscillating indicator is 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.

MACD is made up of two moving averages, one fast and one slow. An indication of a bullish or bearish entry signal is made when these moving averages cross. A buy signal occurs when the fast line crosses through and above the slow line and vice versa.

MACD is used to indicate a buy or sell trigger while the RSI is mostly used to indicate whether a market is considered to be overbought or oversold in relation to recent price levels.

OBV takes a significant amount of volume information and compiles it into a single one-line indicator.
It is used to (ideally) confirm a trend. If the price is rising the OBV should correlate. If the price is rising and OBV is flat-lining or falling, the price may be near a top. If the price is falling and OBV is flat-lining or rising, the price could be nearing a bottom.

1 Like
  1. MACD is short for Moving Average Convergence Divergence and is a kind of oscilating indicator. It helps determine trend and momentum. One can use by checking if it’s on the positive/negative or by checking crosses between the fast and the slow one.
  2. RSI ranges between 0-100 while MACD is centered at 0. RSI gives information in overboughtness and oversellness.
  3. Compiles volume information to define whether buyers or sellers are winning.
1 Like
  1. The moving average convergence divergence (MACD) is an oscillating indicator that can help traders quickly spot increasing short-term momentum.

  2. The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. Its movement is contained between zero and 100 so it provides different information than the MACD.

  3. On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. Volume is the amount of an asset or security that changes hands over some period of time.

1 Like
  1. What is MACD and how is it used?

The moving average convergence divergence (MACD) is an oscillating indicator that trends above and below a 0 marker which forms the centre. It is used to indicate which direction the price is trending in, If the macd lines are above the zero the price is trending upwards if it is below the price is trending downwards.

  1. What is the difference between MACD and RSI?
    The RSI is also an oscillating indicator but it ranges from 0 to 100 and it is used more to show when an asset is overbought (above 70) or oversold (below 30). The MACD is used to show the price direction as a trend

  2. What is OBV and how is it used?

On balance volume (OBV) is an indicator that measures the buying and selling pressure of an asset by adding the volume on days when the price is going up and subtracting volume on days when the price is going down. This is used to determine the momentum of a trend and helps to avoid impulsive trades based on price action within a shorter time period

1 Like
  1. What is MACD and how is it used?
    It is an oscillating indicator. The strategy is to look if a price is below or above zero, if it is below then a trend is down -> sell signal. Opposite if the price is above then the trend is up -> buy signal.
  2. What is the difference between MACD and RSI?
    MACD - it is to look at which side of zero the MACD lines are on in the histogram.
    RSI - its movement is contained between zero and 100 so it provides different information than the MACD.
    Both are oscillating indicators.
    RSI indicates when the price is overbought or oversold.
    MACD is a momentum indicator.
  3. What is OBV and how is it used?
    OBV is a valuable indicator and it 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.
1 Like
  1. What is MACD and how it is used?

The MACD is a oscillating indicator which is used for following a trend and as a momentum indicator. It consists of MACD line and signal line which are fluctuating above and below zero. If the lines are above zero for a longer period of time the asset is considered as uptrending. If both lines are below zero it is downtrending. Crossovers of the two lines can be used as signals.

  1. What is the difference between MACD and RSI?

The MACD is used to quickly spot short - term momentum while the RSI is used to show if an asset is overbought or oversold.

  1. What is OBV and how is it used?

The On-Balance Volume is a Volume indicator which measures cumulative buying and selling pressure. It is possible to generate signals if price action and OBV diverge.

1 Like

What is MACD and how is it used?

The MACD is an oscillating indicator, fluctuating above and below zero. It is both a trend-following and momentum indicator.

One basic MACD strategy is to look at which side of zero the MACD lines are on in the histogram below the chart. Above zero for a sustainable period of time, and the trend is likely up; below zero for a sustained period of time, and the trend is likely down. Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

What is the difference between MACD and RSI?

The RSI’s movements are contained between zero and 100.

The RSI provides information about if the price is overbought and due for a correction or oversold and due for a bounce.

What is OBV and how is it used?

It’s indicator that measures cumulative buying/selling pressure by adding the volume on up days and subtracting volume on down days. It’s used to confirm trends.

1 Like
  1. What is MACD and how is it used?
    The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.

  2. What is the difference between MACD and RSI?
    Rsi ranges between 0-100 and indicates how overbought or oversold and instrument it. A MACD has two moving average lines and is used to indicate a shift in trends.

  3. What is OBV and how is it used?
    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.

1 Like

MovingAverageConvergenceDivergence is combination of a trendindicator and a oscillator indicator. We have two lines and a histogram as the graphical representation. The first line (the “fast” line) is the MACD-line. This is showing the difference btw two exp. moving averages. The second line (the “slow” line) is the signal line. This is a moving average of the MACD-line. When the signal line intersects the MACD-line a signal is generated. The histogram represents the difference between the two lines. This is to bring more clarity to the MACD-indicator and a “pre-signal” indicator.
https://www.youtube.com/watch?v=TFvTgZLXR6Q

RelativeStrengthIndex is an oscillating indicator comparing the ups and downs during a chosen period. For each trading period an upward change U or downward change D is calculated. Then we if we divide the sum of ups with the sum of downs to get RS. Now to calculate the RSI we us the formula 100-100/(1+RS). You may also add a moving average to the RSI as well. But in general is an RSI above 70 “overbought” and below 30 “oversold” .
The similarity is the oscillating part, but as MACD and RSI are calculated differently they respond to the market slightly different. By adjusting the parameters you can create a better or worse predictor of the market and a combination of the two may be even better.

OnBalanceVolume is basically an liquidity momentum indicator. It is calculated as a recurrent series. The first day is set to 0, OBV1=0. The following day the traded volume is added if the price is higher else it is subtracted. If price is higher an volume was 15 day 2, OBV2=0+15. All following days are calculated in the similar way. If we have a nice market OBV will follow the chart trend, up ‘n’ up or low ‘n’ low. If OBV is up, the last traders probably are in profit and this increases the probability for more traders to go long. (A positive feedback)

2 Likes

1- MACD is an oscillator indicator, it’s used to track the momentum of the trend. Using cross overs indicates buy/sell signals
2- MACD is a combined indicated, where you use zero as a reference. And also a combination of slow/fast MA, while RSI is a momentum indicator, in crypto if you see above 70, and back, it’s a signal to sell. Below 30 and back above it, it’s a buy.
3- OBV is a cumulative volume, that adds on up days and subtracts on down days. It’s used to confirm a trend.

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