Reading Assignments: Indicators

TA & Algo Trading Course
#381

  1. Moving average convergence divergence. Looking two different moving averages which can easily helps traders to spot trends

  2. RSI is used to indicate is stock overbought or oversold at the moment. MACD is showing price action of certain time period.

  3. On-Balance Volume. 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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#382

The MACD is used to find positive and negative price strength. If the blue line crosses the yellow line that is an elevating factor that the price is strong. If the blue line is under the yellow line it has a weak price direction.

RSI is used to find the “value” of a stock. It is used to determine if it is a good deal or not.
MACD is used to see if there is a positive or negative direction. Price strength.

The OBV represents the collection of trades within a certain time period. Analyzing the OBV will indicate activity for a certain stock and can be used to determine short term or long term health.

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#383

  1. MACD is a oscillating indicator, with which Traders can find increasing short-term Momentum more easily.

  2. In MACD it is about spotting increasing short-term momentum, while the RSI gives an Indication if an Asset it overbought or undervalued.

  3. The OBV measures buying and selling pressure. It adds the Volume on up-days and subtracts it on down-days. The Volume should confirm the Trend. A higher Price, should be reflected in an higher OBV.

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#384

  1. What is MACD and how is it used?
    (Moving Average Convergence Divergence) is a kind of oscillating indicator. It is used to show the trend as well as the momentum.

  2. What is the difference between MACD and RSI?
    The RSI shows if the price is “overbought”. The MACD shows a uptrend if the MACD is above 0, and a downtrend if MACD is below 0. The RSI ranges between 0 and 100. When the RSI is below 30, a uptrend is most likely coming, if the RSI is above 70, usually a correction is due.

  3. What is OBV and how is it used?
    The OBV is the on-balance volume 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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#385
  1. MACD is a momentum indicator. Traditionally, when the moving averages cross each other we get a buy or a sell signal (depending on the direction of the crossing).
  2. RSI is between 0 and 100 (unlike MACD) so it always stays within a range. It generally identifies overbought or oversold levels
  3. OBV is turning volume information into a single-line indicator
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#386

  1. MACD- Moving Avarage Convergence Divergance is a technical analysis tool based on oscillating indicator wich moves above and below centerline (where “0” sets the base line). Oscillation is determined by crossovers of two lines of Moving Avarage indicator. (I guess that is relevant here and was skipped in lecture, or I missed that?)
    It is used to define trends by:
    a. MACD > 0 for sustainable time it may show an uptrend (and opposite: MACD<0 = downtrend)
    b.MACD fast line (shorter period of time?) is crossing long line from above it may show an uptrend, when it hits long line from a bottom, may show a downtrend.

  2. MACD and RSI differences: Relative Strength Index is only momentum indicator so it is not showing the trend direction. It measures the magnitude of recent prices to define OVERBOUGHT or OVERSOLD market. It reads from 0- 100 points, where below 30 (50 in strong bulls market) means it is oversold, and over 70 it is overbought.

  3. OBV On Balance Volume is a single-line indicator calculated on adding or substracting volumes on uptrend days and downtrend days.

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#387

  1. What is MACD and how is it used?
    MACD is an indicator that oscillates between positive and negative values. It’s a potential buy signal when MACD crosses zero into the positive region, and a potential sell signal when it crosses zero into the negative region. Positive MACD is an indication that the trend is upwards, and vice versa.

  2. What is the difference between MACD and RSI?
    In contrast to MACD, RSI oscillates between 0 and 100 and provides more of an understanding whether an asset is overbought or oversold. In an uptrend RSI can go above 70, while in a downtrend it might fall below 30. Usually, a buy/sell signal would be set when RSI crosses 50 for a short period of time and then goes back up/down.

  3. What is OBV and how is it used?
    OBV indicates buying/selling pressure. Basically, it can help to confirm a trend: rising OBV with rising prices indicate an uptrend, and vice versa. However, if the asset price is ranging while OBV is rising, that would indicate an uptrend and that the price will follow and also rise. If price is rising, while OBV is not, not the trend will likely reverse soon and the prices will start falling or a pullback will occur. The same ideas apply for falling OBV or price.

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#388

  1. MACD short for Moving Average Convergence Divergence, is a trading indicator used in technical analysis of stock prices. It is designed to reveal changes in strength, direction, momentum and duration of a trend in stock price.

  2. Both are considered momentum indicators, the MACD measures the relationship between two EMA’s (exponential moving average), while the RSI measures price change in relation to recent price high and lows. These two indicators are often used together to provide analysts a more complete technical picture of a market.

  3. OBV (On Balance Volume) is a technical indicator of momentum, using volume changes to make price predictions. OBV shows crowd sentiment that can predict a bullish or bearish outcom

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#389
  1. Moving Average Convergence Divergence is an oscillating indicator that shows 2 trendlines of 2 moving averages and how they relate to each other
  2. RSI is also an oscillating indicator but shows more information if an asset is overbought or oversold. Can put good entry points in perspecive.
  3. OBV is On Chain Volume and tells you what the overall Volume is moving towards. Can be uptrending / downtrending or trading sideways. Depending on the price movement it indicates specific moves in the market.
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#390
  • What is MACD and how is it used?
    Moving Average Convergence Divergence, trans following and momentum indicator. Used as a buying and selling indicator
  • What is the difference between MACD and RSI?
    RSI movements is comprised between 0-100. MACD movements moves above and below 0
  • What is OBV and how is it used?
    One line indicator that adds the volume on up days and subtract volume on down days.
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#391
  1. What is MACD and how is it used?

The MACD stands for “the moving average convergence divergence” and is used to identify points in the price chart that indicate execration in a certain direction. Traders mainly use the MACD as an indication for an entry signal.

  1. What is the difference between MACD and RSI?

The main difference is that MACD measures the relationship between two moving averages whereas the RSI (Relative Strength Index) measures price changes.

  1. What is OBV and how is it used?

The OBV (On-Balance Volume) is a tool used to measure the volume of buyers and sellers. Traders use this tool to determine if the price of a stock/commodity will rise or fall. If the volume is rising while prices are stagnant, this may indicate a future increase in price. If the price rises while the volume falls, then this may indicate a future decrease in price.

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#392
  1. MACD is the moving average convergence divergence indicator. It is used to show the momentum of trend patterns and can be used to enter trades using the cross over when the fast line crosses through and above the slow line as a buy signal. A sell signal occurs when the fast line crosses through and below the slow line. 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. While MACD is a momentum indicator RSI is used to show the strength of a trend. RSI has an oversold zone and and overbought zone.
  3. OBV is the On-Balance volume indicator and shows a trend on the volume by adding the volume on “up” days and subtracting volume on “down” days. The OBV can be used to confirm a trend - A rising price should be accompanied by a rising OBV; a falling price should be accompanied by a falling OBV
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#393

Q1. What is MACD and how is it used?
A1. MACD or the moving average convergence divergence is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum. 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. It shows you a buy or a sell signal.
Q2.What is the difference between MACD and RSI?
A2. MACD gives you the Information about the trend of the Market and the RSI gives you the Information if something is overbought or oversold.
Q3. What is OBV and how is it used?
A3. 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. OBV are used to confrim trends.

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#394

1.What is MACD and how is it used?
The MACD is the Moving Average Convergence Divergence, which is a trend following and momentum indicator. Based off of its position above or below 0 and the spread, direction, and whether the blue and red indicators cross, helps to visualize direction of trades.

2.What is the difference between MACD and RSI?
The RSI, or Relative Strength Index, has a range from 0 to 100, and helps to see whether the market is over bought or over sold, unlike the MACD which could be above or below 0 as the RSI fluctuates.

3.What is OBV and how is it used?
The On Balance Volume, OBV, compiles all of the up and down days to form a line indicating the buying and selling pressure. This helps to predict the future movement.

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#395

  1. MACD , short for moving average convergence/divergence, it is a collection of three time series calculated from historical price data, most often the closing price. These three series are: the MACD series proper, the “signal” or “average” series, and the “divergence” series which is the difference between the two. The MACD series is the difference between a “fast” (short period) exponential moving average (EMA), and a “slow” (longer period) EMA of the price series. The average series is an EMA of the MACD series itself.

  2. While the moving average convergence divergence (MACD) indicator measures the difference between two separate exponential moving averages (EMAs), the relative strength index (RSI) measures the difference in selected price highs and lows in a chart.

  3. On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator that adds volume on up days and subtracts volume on down days. When the security closes higher than the previous close, all of the day’s volume is considered up-volume.

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#396
  1. MACD is an oscillating indicator based on the difference between a fast and a slow moving average, and helps spot increasing short-term momentum.
  2. MACD indicates short-term momentum while RSI indicates whether the price is currently considered as overbought or oversold.
  3. On-balance volume is a technical indicator of momentum, using volume changes to make price predictions.
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#397
  1. Moving Average Convergence Divergence (MACD) is used as a trend following and momentum indicator.
  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.
  3. On-Balance Volume (OBV) takes a significant amount of volume information and compiles it into a single one-line indicator.
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#398

Reading Assignment: Indicators.

  1. What is MACD and how is it used?
    MACD stands for Moving Average Convergence Divergence and 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 MACD strategy is to look at which side of zero the MACD lines are on in the histogram below the chart.

  2. What is the difference between MACD and RSI?
    Its movement is contained between zero and 100 so it provides different information than the MACD.
    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?
    OBV stands for On-Balance Volume.
    Volume itself is a valuable 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 if trends are likely to rise or fall indicated by the volume pressure.

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#399

MACD

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.
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.

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

OBV

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.
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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#400
  1. MACD - Moving average convergence divergence is a double-line oscillating trend indicator, it moves around the zero centerline and indicates a short term price momentum within the market.
    It gives a buy signal usually when it’s above the centerline for a sustained period of time or when the MACD fast-line crosses through and above the slow-line. The opposite is the case for a sell signal.

2.Both MACD and RSI are oscillating trend price momentum indicators. The RSI is a single-line oscillating trend indicator and moves within a band of 0 and 100. It’s a measure of the volume of trade.

  1. OBV - ON BALANCE VOLUMNE is an indicator that measures the cumulative buying and selling pressure. It looks like a trendline and it confirms trends in the sense that a rising price mostly coincides with a rising OBV.
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