Reading Assignments: Indicators

TA & Algo Trading Course
#421
  1. What is MACD and how is it used? Moving Average Convergence Divergence: This is an oscillating indicator that moves between a min and max band. This tool can be used to identify trends: when the band is consistently above or below 0, and also identify sell and buy signals when the short and long lines cross.
  2. What is the difference between MACD and RSI? RSI and MACD are both oscillating indicators however RSI moves between a value of 0 and 100: provide signals when it is either above 70 or below 30 letting a trader know when the market is potentially overbought( due of a correction down) or underbought (due for a pump).
  3. What is OBV and how is it used? On Balance Volume (OBV) adds volume on up days and subtracts the volume on down days and with the line that this forms being used to confirm price trends (upwards or downwards).
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#422

  1. MACD stands for moving average convergence divergence and is a type of oscillating indicator which is a trend following and momentum indicator.

  2. MACD is used to gauge the strength of the market whereas RSI is good for gauging whether its a good time to enter or long a position.

  3. OBV or on balance volume is an indicator used to check volume.

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#423

Q1: What is MACD and how is it used?
A1: The Moving Average Convergence Divergence (MACD) can be used to view an overall trend of a market/stock and can help traders quickly spot increasing short-term momentum and/or changes.

Buying and selling signals are usually seen at their strongest when the price crosses these moving averages

Q2: What is the difference between MACD and RSI?
A2: MACD is generally used to gauge overall trends whereas the RSI gauges overbought/oversold conditions being measured between a scale of zero to 100

Q3: What is OBV and how is it used?
A3: The On-Balance Volume (OBV) indicator measures the cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

The volume usually should confirm trends - i.e. 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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#424

1 What is MACD and how is it used?
moving average convergence divergence. It is both a trend following and momentum indicator used to follow the trend either above zero or below to find if the trend is up or down
2 What is the difference between MACD and RSI?
MACD is used to follow the trend of the market either above zero or below and RSI Relative Strength Index is another oscillating indicator but its movement is contained between zero and 100 and tells if the market is over bought or over sold
3 What is OBV and how is it used?
On Balance Volume works on the theory that volume precedes price movement.
It is a cumulative indicator that it derives its current value from previous values

  1. It helps predict the future direction of a breakout when the market is in range
  2. Helps predict reversals
  3. used to confirm levels of support and resistance.
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#425
  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 another oscillating indicator but its movement is contained between zero and 100 so it provides different information than the MACD.
  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.
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#426

  1. MACD (Moving Average Convergence Divergence). Its one of the most common indictors used in trading. Its an oscillator and can be used to view an overall trend of the market and identify reversal patterns. “The more popular the indicator is, the more powerful it is”-CryptoLark
    MACD is comprised of 1) The “MACD Line” which is the 12 interval EMA (fast link) MINUS the 26 interval EMA (Slow Link), 2) the “Signal Line” which is the 9 interval EMA of the MACD Line and 3) the histogram which is the bar/line graph that shows the distance between the MACD and Signal lines. “the Longer the Bars, the Stronger the trend”-CryptoJebb

  2. MACD is used to gauge the convergence and divergence of a trend as well as its strength. It also gauges the crossing of these lines which can indicate trend reversals.
    MACD line crossing below signal line = Bearish trends And MACD line crossing above Signal line = Bullish trends
    RSI (Relative Strength Index) is a Momentum oscillator used to gauge overbought/oversold conditions as well as trend reversals. It is also extremely commonly used which makes it powerful. are the most common uses for new traders learning these indicators.

  3. OBV (On Balance Volume) measures volume flow (positive/negative) and is generally used as a momentum indicator and identify divergence in price action.

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#427
  1. MACD stands for Moving Average Convergence Divergence. It is an indicator that oscillates around 0. When indicator is above 0, it indicates an uptrend, and when it is below 0, it means we are in a downtrend. It is accompanied by to moving averages, a slow and a fast one. The rules here are the same as those of any other slow and fast MAs. The fast one breaking above the slow MA is a buy signal, while the fast MA breaking below the slow one is a short signal.
  2. The MACD and RSI are both oscillators, however, the RSI ranges between 0 and 100, whereas the MACD does so above and below zero.
    The RSI (Relative Strength Index) indicates oversold and overbought territories of an asset. Values above 70 are overbought and those below 30 are oversold. The RSI can signal buy and sell opportunities as well, albeit always in conjunction with the trend. A dip below 50 will show a buy signal and it rises back above 50. A spike above 50 followed by the RSI dropping back down to below 50 levels is a short signal.
  3. On Balance Volume (OBV) is a trend indicator. In simple terms, when daily candles are green, the daily volumes are added up, whereas red daily candles substracts the daily volumes from the OBV. The OBV can signal trend reversals as well as tops and bottoms. The signals appear in the following manner: when the OBV is rising and the price isn’t, the price will most likely follow. The same is true for a falling OBV. When the OBV flatlines in a rising trend, it often means that we are at the top, whereas a flatlining OBV in a falling trand can indicate the bottom.
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#428
  1. The MACD is an oscillating indicator, fluctuating above and below zero. It is both a trend-following and momentum indicator.
  2. The RSI is another oscillator, with its movement between zero and 100. MACD oscillates around the zero line in both positive and negative values.
  3. OBV takes a lot of volume information and compiles it into a single one-line indicator. The indicator measures cumulative buying/selling pressure by adding the volume on up days and subtracting volume on down days.
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#429
  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 way to use the MACD 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.

  1. 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. Like the MACD the RSI is an oscillating indicator but its movement is contained between zero and 100 so it provides different information than the MACD.
  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.The OBV is a collection of a significant amount of volume data 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 confirms 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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#430
  1. MACD is plotting a) the difference between an EMA of 26 days and EMA of 12 days with the b) the EMA of the MACD. It is used to see the momentum of bullish or bearish price trends, and can be used to find entry and exit points.
  2. The RSI, Relative Strength Index, indicates if a security is overbought or oversold, showing how quickly the traders is bidding the security up or down.
    So MACD shows the realtionship between two EMA´s, while RSI shows the price change in relation to previous highs or lows.
  3. OBV, On-Balance volume, is as trading momentum indicator, and shows the distinction between “smart money” and retail investors. When the “smart money” enters or exits a trade it will indicate a possible trend break.
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#431
  1. What is MACD and how is it used?
    It is an indicator that is used to track trends and momentum.
    When macd crosses 0 it could indicate a downtrend and vice versa
  2. What is the difference between MACD and RSI?
    Rsi has a range of 0-100 and it indicated overbought or oversold positions
  3. What is OBV and how is it used?
    Measures added buying and selling pressure by subtracting volume on down days from volume on up days
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#432
  1. What is MACD and how is it used?

MACD is an oscillating indicator used in technical analysis. It is used as a trend-following and momentum indicator to combat potential false signals moving averages can give.

  1. What is the difference between MACD and RSI?

The focus of MACD’s movement is whether the moving averages are above or below 0, whereas the RSI is contained between 0 and 100.

  1. What is OBV and how is it used?

OBV is a single one-line indicator that is based off of a significant amount of volume information. OBV is a method to confirm trends through volume.

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#433

  1. What is MACD and how is it used?
    The MACD is an oscillating indicator that shows short term trends and possible reversals.

  2. What is the difference between MACD and RSI?
    MACD is a trend and momentum indicator that oscillates up and down a baseline.
    RSI returns an indicator between 0 and 100 and shows if the price is overbought (over 70) or oversold (below 30).

  3. What is OBV and how is it used?
    OVB compiles the volume data in a line that measures the selling/buying pressure. OBV is used to indicate trends.

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#434
  1. Moving average convergence Divergence. It is both a trend following and momentum indicator.
  2. MACD is a two line chart that tracks short term trends, while RSI only has one line which is bound between 0-100 will show overbought and oversold trends within a market.
    3.On-Balance Volume is used to confirm trends within a market. It measures cumulative buying power by adding and subtracting up days vs down days.
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#435
  • 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.

OBV (On balance volume) The indicator measures cumulative buying and selling pressure by adding the volume and it should confirm trends.

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#436

1.Tha MACD is a technical analysis indicator ( a kind of oscillating indicator). that varies over time within a band. The MACD fluctuates above and below zero. It’s 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. Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.
2. The RSI movement is contained between zero and 100. It showing the price as overbought and due for a correction or oversold and due for a bounce.
3. 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 subracting volume on ‘down’ days.
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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#437
  1. What is MACD and how is it used?
    It’s a popular indicator used for spotting short-term trenda and reversals.
  2. What is the difference between MACD and RSI?
    RSI is contained between 0 and 100 and for the MACD it’s important if it’s above or below zero.
  3. What is OBV and how is it used?
    It is used to confirm trends through volume.
#438
  1. What is MACD and how is it used? MACD is both a trend following and momentum indicator that fluctuates above and below zero. It is compromised of a fast and slow moving average that can be used to determine buy and sell signals when the fast line crosses the slow line.
  2. What is the difference between MACD and RSI? MACD is an oscillating indicator that fluctuates above or below zero helping determine up or down trends in price. RSI fluctuates between 0 and 100 and depending at which level it is at between that range indicates an oversold or overbought market.
  3. What is OBV and how is it used? OBV (On Balance Volume) is an indicator that uses volume flow to indicate price momentum.
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#439

  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. The difference is MACD shows the direction of a trend and RSI can give a signal of when is a good time to buy or sell; if we’re near the top or bottom.

  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. It should confirm trends.

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#440

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

Is a kind of oscillating indicator that varies over time within a band, above and below a centerline, fluctuating above and below zero. It´s both a momentum indicator and trend follower.

A way to use it is to look at which side of zero the MACD lines are on in the histogram below the chart.

In case the MACD lines are above zero for a sustained period of time, the stock is like trending upwards, potential buy signals occur when MACD moves above zero.

On the opposite, if the MACD lines are below zero for a sustained period of time the trend is likely down, potential sell signals when MACD moves 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.- What is the difference between MACD and RSI?

Both are oscillating indicators, but the RSI is contained between zero and 100, so it provides different information than the MACD.

The RSI can be interpreted by viewing the price as overbought (when the indicator is above 70) or oversold (when the indicator is above 30).

In a strong uptrend, the price will often reach 70 and beyond for sustained periods of time. For downtrends, the price can stay at 30 or below for a long time.

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

On Balance Volume indicator takes a significant amount of volume information and compiles it into a single one-line indicator.

This indicator 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 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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