Reading Assignments: Indicators

TA & Algo Trading Course
#301
  1. Moving Average Convergence Divergence is an oscillating indicator that helps to spot increasing short term momentum and follow overall trend. It is comprised of a fast and a slow moving line plus a histogram plotted on a 0 neutral scale
  2. The MACD oscillates above and below a central line marking O while the RSI has its movement contained between 0 and 100 . MACD isusually used to gauge the strenght of the market while RSI is esed to identify oversold or overbought conditions
  3. On Balance Volume compiles in a single line the overall buy/sell volume : it should follow the price but if it is diverges from it we could expect stagnation or a reversal in the market
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#302
  1. The moving average convergence divergence (MACD), used to follow the trend 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. Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.
  2. RSI has values between 0-100 and tells you if a stock or digital asset is overbought or oversold in the market. MACD has the ability to fluctuate above and below zero.
  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.
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#303
  1. What is MACD and how is it used?
    A: it is the Moving Average Convergence Divergence, it is used to follow the trend and indicate which way the momentum is moving.
  2. What is the difference between MACD and RSI?
    A: RSI is used to determine overbought or oversoldness, while MACD is used to determine the momentum and trend.
  3. What is OBV and how is it used?
    A: OBV measure the buying or selling pressure. it is used to determine which way the price will move and whether or not you are nearing the top or bottom
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#304
  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. The MACD alerts the trader to upcoming price change, where as the RSI evaluates the reason for the sudden price change.
  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. It is used to tell if the price change is supported by the market or a rouge actor.
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#305
  1. The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.
    -> Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.
  2. 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 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. 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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#306

1.MACD is an oscillating indicator that varies over time above and below a center line; the MACD fluctuates above and below zero. If the MACD lines are above or below zero for a sustained period of time, the stock is likely trending upwards or downwards. This strategy, helps flag potential buy and sell signals.
2. RSI indicates general overbought and oversold levels, they may not provide the most timely signals for trend traders.
3. OBV usually confirms trends with volume. 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.

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#307

  1. moving average convergence divergence - smooths out price data visually to aid in identification of short-term chart momentum.

  2. MACD indicates short term price action, while RSI is a momentum indicator that measures magnitude of recent price action.

  3. OBV - on-balance volume measures cumulative buy/sell pressure (adding/subtracting volume), creating a demand indicator

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#308

1.The moving average convergence divergence is a technical analysis tool that shows average price fluctuation over the period of time. Angle of the MACD can help to identify the up or down trends, can also provide support or resistance to the price.
2. RSI shows overbought and oversold levels in the chart, MACD shows average price trends.
3. On Balance Volume - combined data between buy and sell levels, used to identify price trends.

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#309

  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.
    It’s used by taking the average price over a certain period of days (say 25 days) and updating this fixed period daily so that the average moves with time. It is an indicator for a buy or sell signal if the actual price breaks through (buy signal) or drops below (sell signal) the MACD line.

  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.
    Usually on a scale of 0 to 100 an RSI of 70 or higher is an indicator that the asset is overbought which indicates the price might drop and an RSI of 30 or below indicates that the asset is oversold and the price might rise = a buy signal.

  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.
    By looking at the increasing and decreasing volumes of trading traders get a clue if a trend has little or massive support. Analysis of this can lead to a buying or selling signal.

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#310

1. What is MACD and how is it used?

Moving average convergence divergence (MACD), a technical analysis indicator that varies over time within a band. We can use the MACD on the histogram to foresee when a buy/sell signal occurs.

The MACD has two lines, a fast line and a slow line. When the fast line crosses and goes above the slow line a buy signal occurs. On the other hand, when the fast line crosses and goes below the slow line then a sell signal occurs.

2. What is the difference between MACD and RSI?

Unlike the MACD the RSI has a different purpose. It is not only contained between zero and 100 but it also provides information on whether the traded asset is overbought or oversold.

It is likely that when an asset is close to 100 for sustained periods of time, then it is due for a correction/possible downtrend. If the value is closer to 0 then the asset is oversold and so we can expect buying pressure after signs of a pullback about to reach its end.

3. What is OBV and how is it used?

On-Balance Volume (OBV) signifies information in regards to trading volume but as 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.

If the OBV is rising while the price is flat-lining then it is likely in the future that the price will rise alongside the indicator. However, should the OBV start to flat-line or fall then it can be an early warning signal that the price may be nearing a top and expect the price to follow on a downward trajectory.

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#311
  1. What is MACD and how is it used?
    MACD is an oscillating indicator fluctuating above and below 0.
    This indicator provide buy or sells signals when it crosses up or below the 0
  2. What is the difference between MACD and RSI?
    MACD oscillates around 0
    RSI oscillates from 0 to 100
    MACD signals trend
    RSI signals overbought and oversold levels
  3. What is OBV and how is it used?
    The indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.
    The idea is that volume confirms trends. So, if ie, the price is raising the the OBV is not, the it ´s likely the price will go down soon
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#312
  1. MACD or Moving average convergence divergence is an oscillating indicator (a TA tool that varies over time) that fluctuates above and below zero. When the MACD lines cross above zero, this is a buy signal; below zero is a sell signal. MACD has 2 lines- fast and slow. When the fast line crosses through and above- that’s a buy signal; through and below is a sell signal.
  2. RSI is a line within 0-100, whereas MACD is above and below 0. The RSI shows when an asset is overbought or undersold.
  3. OBV or On Balance Volume adds up the volume on “up” days and subtracts volume on “down” days. It can indicate whether the price is likely to continue its trend or if it is due for a pullback. The price will likely follow the OBV.
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#313

1- MACD is an oscillating indicator, that fluctuates around zero. Can be used to look for trend reversals, or for the momentum of the trend
2- The difference is the MACD analyses trends reversals and RSI analyses when the market is overbought or oversold
3- The OBV measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days. It’s used as a momentum indicator

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#314
  1. What is MACD and how is it used?

The moving average convergence divergence. This tracks the price difference of 2 EMA’s and has a signal line that indicated when its a good time to get in and out of trades.

  1. What is the difference between MACD and RSI?

RSI measures the strength of a trend and will signal if a market is overbought or oversold.

  1. What is OBV and how is it used?

This will add and subtract the volume that is being traded. This can be used to predict the movement of a stock.

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#315

1)MACD (Moving avarage convergence divergence) is an oscillating indicator of two lines with different sensibility of the change of the chart, when one croos the other one is a trending signal
2) The difference is what they rapresent: the RSI rapresent if the stock, for example, is overbought, oversold or normal. (it is formed by only one line
3) OBV is a volume indicator, it shows the trading’s volume flow.

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#316

  1. What is MACD and how is it used?
    Moving average convergence divergence 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?
    Relative strength index is a momentum indicator measures cumulative buying and selling pressure by adding the volume on up days and subtracting volume on down days. It provides different information than MACD; it’s movement is contained between zero and 100.

  3. What is OBV and how is it used?
    On-balance volume indicate measures cumulative buying and selling pressure by adding the volume on up days and subtracting volume on down days.
    If OBV is rising and the price isn’t, it’s likely 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 in falling and OBV is flat-lining or rising, the price could be nearing a bottom.

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#317

1. What is MACD and how is it used?
MACD is an indicator used to see trends in price, and can also be used to gauge the momentum of the price action.

At the core the MACD indicator is the difference between two EMAs (exponential moving averages), one shorter and one longer. Typically 12 period and 26 period timeframes are used. When this indicator is above zero it indicates that we’re in a upwards trend, and vice versa. This is the trend-reflecting aspect of MACD.

In addition to this indicator a signal line is typically also used, which is yet another EMA of the core indicator. The indicator line and the signal line can be used as a momentum detector. When the MACD line cross the signal line that could be a buy signal, indication of positive momentum. Buyers should be aware though that if the indicator is below zero when such a crossing occurs it means the trend may still be going downwards.

2. What is the difference between MACD and RSI?
RSI - relative strength indicator - attempts to answer if an asset is overbought our oversold. Goes on a scale from 0 to 100. In a longer uptrend it tends to go above 70 and may indicate that the asset is overbought the price may go down. Vice versa in a downtrend and values below 30.

3. What is OBV and how is it used?
On-balance Volume (OBV) can be used to confirm trends in price. It’s the aggregated volume added or subtracted depending whether price went up or down during the specific timeframe. It typically follows price movements, but it will differ if a price movement upwards is weak - as indicated by low volume. In such a situation the OBV wouldn’t move as much and might indicate a weaker trend. On the other if price goes up with high trading volume, the OBV will confirm the trend by showing a steeper increase.

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#318
  1. What is MACD and how is it used?
    MACD stands for Moving, Average, Convergance, Divergence, and this is a metric which is displayed in two formats. A fast and a slow line whereby the moving averages are noted for when the converge together and cross. Likewise when these moving averages diverge again this can also be used as an indicator. The second format is that of a histogram plotted about a neural scale. Typically these two metrics can show when pull back and reversals can begin to occur.
  2. What is the difference between MACD and RSI?
    MACD is used to show the general trend and direction of the market. RSI is used to indicate when the market is largely overbought or oversold.
  3. What is OBV and how is it used?
    OBV or On Balance Volume is a metric which measures the trading volume within the market, it indicates the momentum within the trading pressure and can point to potential reversals in the price action.
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#319

  1. Moving average convergence divergence - it is used by identifying where the histogram is, above or below 0; and by using the signal line crossovers

  2. MACD is a momentum indicator while RSI indicates the likelihood of price staying in a certain range

  3. On-balance volume - OBV is the summation of volume and it is used to identify trends and divergences

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#320

  1. MACD represents Moving Average Convergence Divergence. It is a trend-following momentum indicator that shows the relationship between two moving averages of price. The MACD is calculated by subtracting the 26-period EMA from the 12-period EMA . The period could also be changed , say to Fibonacci numbers – 21 and 13 for example. MACD triggers technical signals when it crosses above (to buy) or below (to sell) its signal line, a 9 EMA. The speed of crossovers is also taken as a signal of a market is overbought or oversold. MACD histogram helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening.

  2. The MACD is primarily used to gauge the strength of price movement, while the RSI aims to indicate whether a market is overbought (>70) or oversold (<30) in relation to recent price levels. The RSI calculates average price gains and losses over a given period of time.

  3. The On-balance volume (OBV) is a momentum indicator that measures positive and negative volume flow. When volume increases or decreases dramatically, without significant change in price, at some point the price “springs” upward or downward. It appears that as Whales, or institutions, begin to buy when retail investors are still selling, volume increases as the price is still slightly falling or levelling out. Over a period of time, volume begins to drive the price upward and the converse then begins to take over as Whales begin to sell their position as retail investors begin again to accumulate their positions.

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