Reading Assignments: Indicators

TA & Algo Trading Course
#281

  1. MACD stands for Moving Average Convergence Divergence is an trend following and momentum indicator. It is made up of two moving averages with different timeframes. If the MACD is above zero for a while, the price will most likely be trending upwards. Likewise, if it is below zero for an extended period of time, the price will most likely be trending downwards. Crosses between the two moving averages can indicate that a trend might be accelerating.

  2. The Relative Strength Indicator is oscillating indicator similar to MACD, but its movement is contained between zero and 100 so it provides different information. In an uptrend, the price will often reach 70 and beyond for long periods of time and for downtrends, the price can stay at 30 or below for extended periods of time.

  3. On-Balance Volume measures cumulative buying and selling pressure by adding up the volume on “up” days and subtracting out the volume on “down” days. OBV should ideally confirm trends, so OBV should rise if the price is rising and fall if the price is falling.

If OBV is rising but the price isn’t, it’s probable that the price will follow the OBV and start rising in the future. If the price is rising and OBV is holding steady or falling, the price could be approaching a top. If the price is falling and OBV is holding steady or rising, the price could be approaching a bottom.

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#282

1.What is MACD and how is it used?
Answer : Moving Average Convergence Divergence MACD this indicator fluctuate above and below zero and varies over time within a band. It is both a trend- following and momentum indicator. It provides potential buy and sell signals.

2.What is die difference between MACD and RSI?
Answer : MACD is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum, where (RSI) measures the magnitude of recent price changes to evaluate overbought or oversold conditions.

3. * What is OBV and how is it used?
Answer : The OBV (On-Balance-Volume) measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#283
  1. What is MACD and how is it used?

Moving average is a technical analysis tool that smooths out price data by creating a constantly updated average price.

  1. What is the difference between MACD and RSI?

MACD shows average price per chosen period, but RSI shows whether the market is oversold or overbought.

  1. 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.

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#284
  1. The MACD (Moving Average Convergence Divergence) is a kind of oscillating indicator and if the MACD is above the zero the stock is likely trending upwards if the MACD is below the trend is likely down.
  2. RSI indicates an overbought or oversold market while MACD indicates the strength and trend of the market.
  3. The OBV ([on-balance volume) is another 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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#285

  1. 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.ï»ż Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.
    Signal line crossovers can also provide additional buy and sell signals. A MACD has two lines—a fast line and a slow line. A buy signal occurs when the fast line crosses through and above the slow line. A sell signal occurs when the fast line crosses through and below the slow line.

  2. RSI is another oscillating indicator to help traders spot buy/sell opportunities. When the RSI is above 70, the asset is overbought or “expensive”, for the particular timeframe (e.g. 1m, 15m, 1h, 4h, 1D, 1W, so on) and when RSI is below 30, the asset can be interpreted as oversold or “cheap”. MACD on the other hand, is a different way to spot buy/sell opportunities and help a trader make such decisions. These two indicators, combined with chart patterns and other indicators could further mean an increased probability of a price action to happen.

  3. 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.

Examples: if OBV is rising and the price isn’t, it’s likely that the price will follow the OBV in the future and start rising. 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.

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#286
  1. What is MACD and how is it used?

It is a Moving Average Indicator Oscillator that, when used in combination with other indicators and market variables, signals buy-sell opportunities. Buy when the MACD line crosses over its signal line, and vice-versa.

  1. What is the difference between MACD and RSI?

Both are Indicator Oscillators, the MACD oscillated around a zero line adverting to get into a trade when above the zero line and vice-versa and the RSI oscillated between 0 and 100, suggesting an overbuy condition between 70 and 100 points and oversell between 0 and 30 points.

  1. What is OBV and how is it used?

OBV is an Indicator that measures buying and selling pressure of the markets. It is used by comparing the price direction of an asset with its amount of supply and demand

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#287
  1. It’s a technical analysis tool, which is represented by an indicator that fluctuates below or above zero and is based on historical moving averages for the market. When MACD is above the zero line for some time, it’s highly probable that the stock is moving upwards.
  2. MACD is any real number, but RSI allows only values >=0 and <=100
    Also, the higher the number in RSI, the more market is overbought - which signals the threat of a downward trend coming. The higher MACD, on contrary, signals higher market upward trend.
  3. OBV: if upday: OBV+= volume, if downday OBV -=volume :nerd_face:
    OBV thus can be used to predict the market trend: if the volume goes down, the price may follow.
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#288

  1. 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.
    One basic 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.ï»ż Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

  2. RSI contain movements from 0 to 100 and it provides different information.

  3. 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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#289

1.) WOne of the advantages of the MACD is that it’s both a trend and momentum indicator. But its main flaw is that it gives the signals later than the price action itself.
2.) What is the difference between MACD and RSI?
A.) 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.

3.) What is OBV and how is it used?
A.) On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. 
 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.(VERY USEFUL IN MY OPINION.) :nerd_face:

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#290
  1. MCAD= moving average convergence divergence. It is used as a technical indicator on when to buy and sell.
    2)MCAD is more about predicting momentum, whereas RSI is more for predicting if an asset is overbought/underbought.
    3)OBV is on balance volume. It is the buy volume subtracted from the sell volume. This indicator is a good way to tell if the price will decrease or increase based on the total trade volume.
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#291
  • What is MACD and how is it used? MACD is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.
  • 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. The MACD fluctuates above and below zero. It is both a trend-following and momentum indicator.
  • What is OBV and how is it used? The on-balance volume indicator (OBV) takes a significant amount of volume information and compiles it into a single one-line indicator.
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#292

  1. MACD is an indicator that is centered around zero and can be used to see if an asset is trending upwards or downwards. If MACD moves above zero it can indicate an uptrend is forming and can be used as a potential buy signal. The reverse would be true for downtrends.

  2. RSI moves between zero and 100. It indicates whether an asset is oversold or overbought.

  3. On-balance volume is an indicator where volume is added to on up days and volume subtracted on down days. It can be used to confirm trends or to see if a change is coming.

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#293
  • What is MACD and how is it used?
    It is an oscilating indicator that gives information about the general direction af price trend. It consists of tree parts:

macd line 1, a diference of daily ema, ema(12)-ema(26) ,
macd line 2, 9 daily ema of madc line 1,
instogram, diference of macd line 1 - macdline 2

When the instagram is positive it signals a positive growth and negative growth otherwise

  • What is the difference between MACD and RSI?

Tha RSI measures overbought/oversold conditions and tha MACD measures strength of upside/downside trend,

  • What is OBV and how is it used?

Is the on balance volume, for instance of an exchange, and it is used to measure/confirm information about the trend, tops amd bottoms,

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#294

  1. MACD is an indicator made of slow and fast moving averages, oscillating below and above 0.
    It indicates a momentum in the market. When the fast line cross above the slow line, it usually indicates a buy signal. And when the fast line crosses below the slow line, it usually indicate a sell signal.

  2. MACD is a momentum indicator, whereas RSI is an indicator of overbought of oversold. Its more about the amount being bought than about the momentum.

  3. OBV is an indicator about the volume, it combines volume bought and sold. I don’t really understand how it is made from the article
 but it is said that when the price is up and OBV is flat, it usually indicates a trend reversal and vis-versa.

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#295
  1. The MACD or moving average convergence divergence concists og two smooth lines that shows the average price over time. The two lines show diffenent avarage, for example 50 and 100 days. When the lines cross it can be used as a buy or sell signal.
  2. While the MACD is used for viewing the trend of the market by viewing a average price, the RSI show if it is ower sold or ower bought.
  3. On-Balance Volume (OBV) measures cumulative buying and selling pressure by adding volume on days that is going up, whild subtracting volume from down days.
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#296

1.the MACD is the moving average convergence/divergence strategy - a oscillating indicator that can quickly spot the increasing and decreasing of short/long term momentum
2.the difference between MACD and RSI is RSI is normalized in 0-100 range, it has a single line value
The MACD has two lines showing the trend, if going above 70 its a bullish trend and if going below 30 it is heading into a bearish trend
3.The OBV confirms UP and DOWN trends , a bullish trend should have OBV rising with it, a bearish trend should be decreasing with the trend

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#297
  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.

  1. What is the difference between MACD and RSI?

The relative strength index is another oscillating indicator but its movement is contained between zero and 100 so it provides different information than the MACD.
MACD shows average price per chosen period, but RSI shows whether the market is oversold or overbought.

One way to interpret the RSI is by viewing the price as—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

  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.

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.

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#298

A)The MACD is an oscillating indicator that fluctuates above and below zero. It is made up of 2 moving averages and when they cross, this helps identify entry signals to the up or to the down side.

A)MACD measures the relationship of two moving averages whereas RSI measures price changes in relation to recent price highs and lows.

A)OBV is On Balance Volume and is used to measure the volume of trading behind the price action.

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#299
  1. MAC-D is a tool used to compile 2 “customizable” averages of data along with a histogram to help locate and determine current trend status and its strength in that specific trend. It can be used to help decide on strategic buy and sell trade positions (short term trading)

2.RSI is more of an indicator to show strategic buys within a specific trend. The tool shows area of when the price is considered overbought and or undersold. The MAC-D is more of a strength of the overall “momentum” of the trend

3.It is a tool to confirm the validity of the specific trend using Volume. If using the tool with comparison of the current price, it can show you the validation of “more buyers” or “more sellers” in a specific direction. “The OBV should rise along with price, if it is not, that is an opportunity or indication of something”

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#300

  1. MACD is moving average oscillating indicator that can help traders quickly spot increasing short-term momentum. It is both a trend-following and momentum indicator. It is used to determine upwards and downwards trends in the price of stock; to identify probable buy and sell signals, when using a fast line MA and slow line MA and examining convergence or divergence from the center line within a band; and it also can be used to identify support or resistance levels to a price.

  2. What is the difference between MACD and RSI? MACD uses a band with a scale from 1 to -1, where the centerline is 0, while the RSI uses a band with a scale from 10 to 90, where the center line is around 50. The RSI provides different information than the MACD, as it sees price as overbought or oversold and signal probable changes in trend of the stock price.

  3. What is OBV and how is it used?
    OBV is a single-line indicator. It measures cumulative buying and selling pressure by adding volume on up days and substracting volume on down days. A rising price should be accompanied by a rising OBV, and a falling price should be accompanied by a falling OBV.

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