Reading Assignments: Indicators

TA & Algo Trading Course
#461

1.MACD-Moving Average Convergence Divergence is an oscillating indicator. It is a trend following and momentum indicator. If the MACD lines are above zero for a sustained period of time, the instrument is likely trending upwards and if the lines are below zero for a sustained period of time also, the trend is likely down, Potential buy signal occurs when the MACD moves above zero and a potential sell signal when it crosses below zero.

2.The difference between MACD and RSI (Relative Strenght Index) is while MACD moves above /below zero and establishes trend direction, RSI moves between zero to 100 and establishes trend strength-overbought / oversold states.

3.OBV-On-Balance Volume is a trend continuation indicator. The indicator measures cumulative buying and selling pressure by adding the volume on up days and subtracting volume on down days. The volume should confirm trends. A rising price should be accompanied by a rising OBV and a falling price should be accompanied by a falling OBV. However, if OBV is rising and the price is not, it is 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 may be near a bottom.

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#462

The Moving Average Convergence Divergence (MACD) is a kind of ‘smoothing’ oscillating indicator. The MACD fluctuates above and below zero. It is both a trend-following and momentum indicator.

RSI indicates “overbought” and “oversold” signals.
MACD indicates the trend of the market and potential shifts.

OBV = On-Balance Volume, it indicates cumulative buying and selling pressure. It shows how strong a trend is.

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#463

  1. The moving average convergence divergence is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum. Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

  2. MACD shows if the stock is in upwards trend or downwards trend,but RSI shows us is the stock overbought or oversold.

  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. Its also a good tool to see if we are coming near a top/bottom(nearly straight OBV line means we are close to the top/bottom).

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#464

1. What is MACD and how is it used?
MACD means moving average convergence divergence (MACD) and 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 MACD fluctuates above and below zero and the RSI between zero and 100.

3. What is OBV and how is it used?
OBV means on-balance volume and takes a significant amount of volume information and compiles it into a single one-line indicator. The OBV measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.

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#465

1 MACD is an oscillating indicator and is used for identifying short term momentum.

2 The RSI identify s over brought and over sold situations , while the MACD give the over all market trend.

3 The On-balance volume (OBV) add volume on good days and subracts volume on bad days

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#466

  1. MACD Moving Average Convergent Divergent is comprised of 2 moving ribbons. One moves slow and the other moves fast. Used to identify probable pull backs and or reversals.

  2. RSI is used to measure the conditions of overbought/oversold stocks. MACD is used to measure trend strength of the market,

  3. OBV On Balance Volume measures volume flow in either direction UT/DT and can be used as a momentum indicator.

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#467

  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.

  2. What is the difference between MACD and RSI?

    • The MACD oscilliates around a 0-center and buy and sell signals are derived from a short and long MACD and their movement. RSI oscilliates between 0 and 100 with two important key levels at 30 and 70. Potential buy and sell signals are derived from the movement through the middle line (50) and the movement of the line above 70 or below 30.

  3. What is OBV and how is it used?

    • The OBV (on-balance volume) measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days. The OBV can be used to confirm trends and stagnation with potential tops and bottoms. If the trend is rising, the OBV should be rising as well and vice versa. Alternatively, if the OBV is flat lining it might signify a top or bottom depending on the direction of the trend.
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#468

  1. MACD is a relationship comparison between a long and shorter trend line based on time. For example, one trend line could be 200 days and the other 50 days. When the 50 day trendline crosses below the 200 day trendline, it indicates a favourable time to sell. When the 50 day trend line crosses above the 200 day trend line it’s a good indication to buy.

  2. MACD uses two trend lines as buy and sell indicators, but RSI uses a scale of 0-100 as in indicator. Over 70 is a good sell indicator and under 30 is a good buy indicator.

  3. OBV uses volume to confirm trends. A trendline can be used to indicate buy and sell opportunities in a similar fashion to trendlines on a candlestick chart.

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#469

1. What is MACD and how is it used?
A: Moving Average Convergence Divergence. It uses a histogram to indicate distance between crossover (divergence and convergance) of the fast and slow lines that can be used to determine buy and sell signals.
2. What is the difference between MACD and RSI?
A: MACD is a trend following / momentum indicator that oscillates around a centerline valued at 0.
RSI indicates OVERBOUGHT (>70) and OVERSOLD (<30) by oscillating on a 1-100 scale.
3. What is OBV and how is it used?
A: On-Balance Volume Indicator takes multiple forms of volume data and combines it into a single line. It measures cumulative buying and selling pressure.

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#470

  1. What is MACD and how is it used?
    Uses two moving averages to do all of its calculations and helps you spot trend reversals. Potential trend reversals.
    Advice: Use the histogram for MACD, is it a positive or a negative number?
    Is the market bullish or bearish? Using MACD is not a guaranteed success.

  2. What is the difference between MACD and RSI?
    If the number on the RSI is above 70, then it suggests that the market has previously been very strong and has rallied or been bullish and has gone higher to a certain extent that it’s now overbought. It’s higher than it normally would be. It’s probable that the market will pull back and move lower. Numbers below 30 means that the market has been weak, a bearish trend. Price action shows that it’s oversold. Probably that the market will turn around and go up. MACD indicates the overall strength and trend.

  3. What is OBV and how is it used?
    On balance volume. it works on the theory that volume precedes price movements. IF a price bar closes the exact same location as the previous bar (neither higher or lower) the value of the on balance volume remains exactly the same. The indicator only rises a lot when a period or candle closes green with heavy volume. If the volume is light, the OBV indicator won’t rise a lot. Even if the price went up a lot. The higher the volume, the more significant the move.

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#471

  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. The oscillating indicator varies over time within a band, above and below a center line. The MACD fluctuates above and below zero.

  2. 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. When the indicator is at 30, that’s a buy signal. When the indicator is above 70, that is a sell signal.

  3. What is OBV and how is it used? On Balance Volume. The indicator measures cumulative buying and selling pressure by adding he volume on the “up days and subtracting volume on the “down” days. The volume should confirm trends, a rising OBV should accompany a rising price. A falling price should be accompanied by falling OBV.

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#472

  1. What is MACD and how is it used? MACD stands for Moving Average Convergence Divergence and is a technical analysis indicator which can give an indication of the trend and can be used as a potential buy or sell signal depending on it’s lines are above or below zero.

  2. What is the difference between MACD and RSI? The Relative Strength Index (RSI) is an indicator which varies between 0 and 100 and indictes if the price is overbought and due for a correction, or oversold and due for a bounce. Whereas MACD is a trend indicator.

  3. What is OBV and how is it used? On-Balance Volume is an indicator measures cumulative buying and selling pressure. It is used to confirm trends.

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#473
    • The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum. It is used by looking at points where the moving averages cross over each other and use that as an entry signal and a point where the trend might be accelerating.

  2. RSI (Relative Strength Index) is used to identify if a market is overbought or oversold, and is generally represented with values of 0 - 100. Above 70 is overbought and under 30 is oversold, and likely due for a bounce.
    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.

  3. On -Balance Volume (OBV) takes a significant amount of volume information and condenses it down into one single time line indicator. 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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#474
  1. What is MACD and how is it used?

Answer: MACD is a trend indicator that calculate the average moved of a particular asset over a given period of time.
2. What is the difference between MACD and RSI?

Answer: MACD measure the direction of the market while RSI measure the strength of the market

  1. What is OBV and how is it used?

Answer: This is on balance volume that measure the volume traded between buyer and seller on an asset within a particular period

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#475
  1. What is MACD and how is it used?

Moving average convergence divergence is an indicator. When MACD moves above zero bullish indication below zero bearish indication. Also has fast and slow line. if fast line crosses slow- bullish, vie versa is bearish.

  1. What is the difference between MACD and RSI?
    MACD turning point is 0. Goes below and above. RSI is between 0 and 100
    RSI is an index of whether the the coin is oversold or overbought. With RSI <30 indicating oversold, and >70 overbought.

  2. What is OBV and how is it used?
    On balance volume, tells whether the volume is going up or down. It adds volume on up days and subtracts volume on down days.VOlume should confirm trend- increased volume as price moves up and decreasing volume on price down days. If the trends do not align, then volume is front-running price.

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#476

  1. What is MACD and how is it used?
    The moving average convergence divergence or MACD is an oscillating indicator that illustrates momentum. One strategy using MACD is by using the histograms to identify bullish/bearish trends

  2. What is the difference between MACD and RSI?
    MACD indicates the momentum of the trades, and RSI uses a number between 0-100 to indicate how overbought or oversold an asset is.

  3. What is OBV and how is it used?
    On-balance volume or OBV is trading volume data, and is typically correlated to price. It can be used to confirm trends or provide insight to future price action if there is a disparity btwn OBV & price.

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#477
  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. 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.

  1. The MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows. However, these two indicators are often used together to provide analysts a more complete technical picture of a market.

  2. 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.

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#478

  1. What is MACD and how is it used?
    Moving Average Convergence Divergence is a trend following and momentum oscillating indicator.

  2. What is the difference between MACD and RSI?
    Relative Strength Index is also an oscillating indicator, but it indicates that something is underbought or overbought.

  3. What is OBV and how is it used?
    The On-Balance Volume indicator measures cumulative buying and selling pressure. It can be used to confirm trends or indicate that thay might be about to change.

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#479

  1. What is MACD and how is it used?
    MACD is a trend and momentum indicator that fluctuates above and below zero to indicate buying/selling signals.

  2. What is the difference between MACD and RSI?
    RSI is an indicator to let you know when a stock is oversold or overbought.

  3. What is OBV and how is it used?
    On Balance Volume tracks volume to help confirm (or get ahead of) trends.

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#480

What is MACD and how is it used?
The Moving Average Convergence Divergence is used to determine the potential trend reversal.

What is the difference between MACD and RSI?
MACD indicates a potential trend reversal coming up an RSI shows how strong a market has previously trended.

What is OBV and how is it used?
OBV is a volume histogram. When it is rising it is likely that price will rise (soon). When it is falling, or flat, price maybe near a top.

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