Reading Assignments: Indicators

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#401

What is MACD and how is it used?
Means Moving Average Convergence Divergence. This is an indication which helps traders to identify possible entry points. There are signals like a bullish or a bearish crossover when the two lines crosses. It indicates the directions with a good chance. But in crypto you will never know…

What is the difference between MACD and RSI?
The Relarive Strenght Index Is based on a scale from 0 to 100. It focuses on individual positions. When above 70% it is overbought and if it is under 30 it is oversold.

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

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#402
  1. MACD stands for “Moving Average Convergence Divergence” and is sort of an oscillating indicator that helps spot increasing short-term momentum.
  2. RSI (relative strength index) is an oscillating indicator with movement contained 0-100 where as the MACD is contained just above and below zero. The RSI indicates if the asset is “overbought” where as the MACD indicates the overall trend of the asset.
  3. OBV stands for “On-balance Volume” and it measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting the volume on “down” days.
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#403

  1. What is a MACD and how is it used ?
    The MACD is a type of oscillating indicator that can change over time, the MACD will fluctuate above and under a fixed point in this case 0. This indicates whether it is in an uptrend or downtrend and also whether the momentum is bullish or bearish. If the MACD is above the zero it means it has bullish momentum and vice versa for bearish. If the lines cross over this could be an indication of the momentum changing.

  2. What is the difference between MACD and RSI?
    Both MACD and the RSI are both momentum indicators the difference being:

  • A MACD is used to gauge the strength of the price movement, the larger the gap between the EMA’s indicates strong momentum in either direction. The MACD measures the relationship between the two EMA’s
  • A RSI is used to indicate whether a market is over sold or over bought, if its above 70 this is considered over bought and if its below 30 its considered over sold. The RSI measures price change in relation to recent price highs and lows.
  1. What is OBV and how is it used?
  • An OBV is a momentum indicator the uses the volume flow to predict changes in the market. You can use an OBV to determine a trend in the market as price should follow the OBV, you can draw trend lines on the OBV as you would a chart and this can indicate potential price movement at those key ares such as after a correction.
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#404

  1. MACD is an oscillating indicator that can help traders quickly spot increasing short-term momentum. It has 2 lines and when both cross each other, it indicates that market trend is moving up or down.

  2. MACD compares its fast and slow line while RSI indicates whether a coin is oversold or overbought.

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

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#405

  1. The MACD is an indicator that shows the relationship between two moving averages, and is used to trade trends.

  2. The MACD shows trends and the RSI shows the magnitude of recent price changes.

  3. The 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 confirm trends, for example a rising price should also have a rising OBV.

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#406

MACD = 12 day EMA - 26 day EMA.
It can be used in several ways. Comparing fast and slow lines can give buy or sell signals (buy signal: fast line crosses through and above slow line. sell signal: fast line crosses through and below slow line.)
Looking for on which side of the line zero macd lines mostly are (below =downtrend, above=uptrend)

RSI is indicating differences in recent price highs and lows while macd is measuring the realtion between 2 EMAs.
RSI has and indicator between 0-100 which can help measure upcoming movements.
They are used to full value when used together.

OBV - on balance volume.
OBV measures buying and selling pressure and adds the volume factor. It is adding volume on up days and substracting volume on down days.
Normally OBV should confirm the price change but it is not always the case.
OBV can be used as an indicator of future price changes when obv and price is moving in different directions:
rise in price, but obv is falling = price might get close to its peak
fall in price, but obv is rising = price might touch its bottom

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#407
  1. MACD using two moving averages (fast and slow) indicates the trendand momentum of the market. If the fast MA crosses above we get a buy signal, alternatively we get a sell one. The condition of the MA to be above or below zero also indicate buy or sell opportunities.
  2. RSI indicates if the asset is balanced, over bought or oversold, MACD is more of a trand and momentum indicator
  3. OBV (on balance volume) is an indicator that with a single line indicates cumulative buying and selling pressure, sometimes the price can change significately with little money behind it’s move, that can be detected through OBV
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#408

1 Is made up of two Moving Average with different time frame, can identify when a trend may change, and tell us Convergence Divergence from the centerline, which may indicate a trend to follow or a momentum to take.

2 Relative Strength Index its not a relative index, it tell us when there is a condition of overbought or oversold in a rang between 0 and 100.

3 Is based on volume average, and tell us if a trend is steel going on.

#409

What’s is MACD and what is it used for?

Moving Average Convergence Divergence is a trend following indicator that oscillates above and below zero to show momentum. It’s composed of 3 parts. The MACD line (12day EMA – 26 Day EMA), the Signal line (9 Day EMA of the MACD line), and the MACD histogram (MACD line – the Signal Line). The space between the lines indicates the momentum with widening meaning increase and narrowing meaning a decrease. How the line cross indicates whether there’s and uptrend or downtrend and the histogram visually displays the changing momentum over time between buying and selling.

What is the difference between MACD and RSI?

Relative Strength Index is also an oscillating indicator with a histogram, but it shows when the price is overbought above 70 and over sold under 30.

What is OBV and how is it used?

On Balance Volume uses volume flow to predict price changes on the premise that volume increase/decreases will correlate with price rising and falling.

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#410

  1. What is MACD and how is it used?

  2. What is the difference between MACD and RSI?

The MACD is measured above and below zero. The RSI is measured between zero and 100z
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.

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.

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.

  • The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum.
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#411

  1. Moving Average Convergence Divergence, or MACD, is a type of oscillating indicator formed form 2 moving averages of different timespans (e.g. 50-day and 200-day). The crossing of 2 moving averages could indicate a potential entry point for investors. For example, “a buy signal occurs when the fast line [the shorter of the moving averages] crosses through and above the slow line.”

  2. Relative Strength Index, or RSI, is another oscillating indicator used to see whether an asset is overbought and due for a correction, or oversold and due for a bounce. The number is between 0 and 100.
    A typical overbought indicator is when the RSI is above 70, while a typical oversold indicator is when the RSI is under 30.

  3. On-Balance Volume, or OBV, sums the volume given each day by the market. So an “up” day would add volume to the balance, while a “down” day would subtract volume from the balance. The OBV acts as a confirmation of a trend.
    If, say, the OBV of an asset is rising but the price of that asset is not rising, then we might expect the price to eventually “catch up” and rise along with the OBV indicator.

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#412

  1. MACD is the Moving Average Convergence Divergence indicator which is used to view the overall trend of the market to identify probable breakouts and reversals. It is an oscillating indicator that can help traders spot short term momentum.

  2. MACD gauges the trend and strength of the market where RSI gauges the overbought/oversold conditions.

  3. On Balance Volume measures volume flow and is usually used to indicate momentum and identify divergence in price action.

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#413
  1. MACD is an oscillating indicator that helps the trader to spot the short-term momentum of the trend. It is calculated by the combining two moving averages: the 12-day and the 26-day EMA. It is oscillating above and below 0.
  2. RSI is measure between 0 and 100, it gives us a signal whether the market is overbought or oversold.
  3. OBV displays the cumulative buying and selling pressure as a simplified one-line indicator. If it is rising and the price too, then the uptrend will probably go on; if the OBV is flat-lining or falling and the price is rising, it may signal the price is near the top; if the OBV is rising and the price dropping, the price could be near its bottom.
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#414

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.
  • If the MACD lines are above zero for a sustained period of time, the stock is likely trending upwards, 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?

  • 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.
  • RSI (relative strength index) 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?

  • OBV (on balance volume) indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days. OBV takes a significant amount of volume information and compiles it into a single one-line indicator.
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#415
  1. The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum. It helps look at points within a chart where the trend might be accelerating so traders can use it as a buy/sell signal
  2. RSI has a scale of 0-100 whereas MACD uses a scale that goes above and below 0. RSI looks to gauge whether something’s overbought/oversold. MACD is used to gauge the trend and strength of the market
  3. OBV, On-Balance-Volume, measures cumulative buying and selling pressure by adding volume on “up” days and subtracting volume on “down” days. It’s used as a momentum indicator and to identify when price action is about to potentially change direction
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#416
  1. MACD is a momentum indicator, is an oscillator that fluctuates over time within a band, above and below a centerline: 0
    It’s made of 2 moving averages with different time periods, and the difference between them is represented as the histogram of the MACD, it helps identifying points in the price chart where the trend momentum might be accelerating. (where the 2 moving averages cross)
  2. The RSI is also an oscillator but its movement is contained on a 0-100 range, one way to interpret it is by viewing its values as “overbought” (above 70), and “oversold” (below 30).
  3. “On-Balance Volume” the indicator compiles volume data into a single line that measures cumulative buying and selling pressure by adding or subtracting volume on green and red days respectively.
    It should be used to confirm trends.
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#417

  1. Moving average convergence divergence (MACD) is a kind of oscillating indicator that show the change over time (above or below) a centreline of a band. Is used both for trend following and momentum indicator, this strategy gives you potential to buy (MACD moves above zero) or potential to sell (MACD moves below zero).

  2. Relative strength index (RSI) is another oscillating indicator but its movement is contained between zero and one hundred. This indicator is used for overbought or oversold in the market, while the MACD is used for information about the trend of the market .

3.On balance volume (OBV) is an indicator that measures the cumulative buying and selling by adding volume on “up” days or subtracting on “down” days. This indicator is used to confirm trends, raising trend is followed by a rising OBV or falling trend is followed by falling OBV. If the OBV is raising and the trend price is not most likely it will rise in the future , if trend price is raising and OBV is not or falling most likely it is near a top or if the price trend is falling and OBV is rising most likely the trend is reaching a floor.

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#418

  1. What is MACD and how is it used?
    MACD means “moving average convergence divergence” and it is both a trend-following and a momentum indicator. If the MACD lines are above zero for a sustained period of time, the stock is likely trending upwards and if its below the zero it is likely to be trending down. The MACD is made of 2 lines a fast and a slow line. When the 2 overlap it can signal buy or sell opportunities.

  2. What is the difference between MACD and RSI?
    The RSI view the price as either “overbought” and due for a correction or “oversold” and due for a bounce. MDCA looks at trends and momentum.

  3. What is OBV and how is it used?
    The “on balance volume” looks at the volume flow (buying and selling).

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#419
  1. is a moving average convergence divergence, its a trend following momentum indicator, that shows the relationship between two moving averages a security price. Traders use the MACD the to identify when bullish or bearish is high in order to identify entry and exit points for traders
  2. While both are considered momentum indicators, 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. on balanced volume 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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#420
  1. What is MACD and how is it used?

(copy/paste answer)
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.

(Paraphrased answer)
When two different time period moving averages are utilized as indicators in an oscillating manner. The centerline is usually set to 0 with a certain deviation away in both the positive and negative dimensions; showcasing trend-following and momentum indicating bands with indicative information when they intersect or occupy one side of the equation or the other.

How it is used/Useful pieces of info:
Are the lines above or below 0?
Have the lines converged/crossed over one another?

  1. What is the difference between MACD and RSI?

The RSI is a single trend line, whereas the MACD is fully utilized with 2 different trend lines.
The RSI tells you if the market is generally overbought or oversold, whereas the MACD signals you for uptrends and downtrends.

  1. What is OBV and how is it used?

My initial impression is as follows:
What a moving average does to candlesticks is what On Balance Volume(OBV) does to classic histogram volume charts.

Utilization:
Further confirmation of a trend, either upwards or downwards.

I am very new to technical analysis but these courses have further broken this down for adequate understanding of charts! Thanks on the Academy! [:

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