Reading Assignments: Indicators

TA & Algo Trading Course
#481
  1. Moving Average Coverage Divergence , It helps to identify where a trend might be accelerating. It is an oscillating 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.
  2. MACD utilizes unit price whereas RSI (Relative Strength Index) utilizes a set scale of 0-100.
  3. On-Balance Volume is an indicator which takes a significant amount of volume info & compiles into a single one-line indicator. It measures cumulative buying & selling pressure by adding volume on “Up” days and subtracting volume on “Down” days. Price eventually follows OBV, so is more of a pro-active vs reactive or lagging indicator.
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#482

• What is MACD and how is it used?

MACD is 2 moving avarages fast one and slow one. On the point where they cross and move on each other you can predict what the market will do.

• What is the difference between MACD and RSI?

MACD is mostly used to look at the trend and strength of the market and to predict it. RSI is a tool to watch if it is oversold.

• What is OBV and how is it used?

OBV is an indicator to check out the buying or selling volume/Pressure

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#483
  1. The MACD is an indicator that uses the moving average and measures the difference between the 2 time frames.
  2. The MACD is a moving average and the RSI is a volume of buying or selling pressure
  3. On Balance Volume follows trends the price should reflect the obv. Rising price should be a rising obv
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#484
  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 RSI is momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock.
  2. 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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#485

1. What is MACD and how is it used?
The moving average convergence divergence (MACD) is an oscillating indicator that consists of 2 moving averages, aka a fast line and a slow line. A crossover of the fast over the slow line can indicate a potential change in trend which could suggest a buy or sell signal.

2. What is the difference between MACD and RSI?
The Relative Strength Indicator (RSI) is another form of oscillating indicator but is bound between 0 and 100. A counter is in an overbought region when RSI > 70 and oversold when RSI < 30. A typical use of RSI to signal a buy is when RSI rebounds from oversold territory above 50 and a sell signal when RSI drops from overbought territory below 50. This is different from MACD which uses the MA crossovers as the “signal”.

3. What is OBV and how is it used?
On-balance volume (OBV) is a volume indicator that accumulates the volume of the last N days, adding the volume on “up” days and subtracting the volume on “down” days. The OBV can be used as an addition guide of trend strength - rising price should be accompanied by rising OBV, falling price with falling OBV. A weakening trend can be seen in a drop in gradient of the slope of the obv line, and a flattening could suggest a potential change in trend.

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#486

  1. MACD stands for moving average convergence divergence. It is in an indicator “that can help traders quickly spot increasing short-term momentum.”

  2. MACD helps traders spot short-term momentum while RSI helps them measure the magnitude of recent price changes to make sure that the price of a stock is not overbought or oversold.

  3. OBV (on-balance volume) measures “cumulative buying and selling pressure by adding volume on ‘up’ days and subtracting volume on ‘down’ days.”

Resource: https://www.investopedia.com/articles/active-trading/041814/four-most-commonlyused-indicators-trend-trading.asp

Thanks!

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#487
  1. What is MACD and how is it used? the MACD (moving average convergence divergence) indicator informs the trader of price movement that oscillates above and below a zero point, by measuring convergent or divergent movement between two moving averages (usually 50 or 200).
  2. What is the difference between MACD and RSI? The RSI, although also an oscillator, informs the trader about over sold/over bought conditions in the market.
  3. What is OBV and how is it used? the OBV (on balance volume) measures volume against a trend line and can assist the trader in making predictions about where the price may move based as a function of volume in the market.
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#488
  1. MACD: to spot short-term momentum. It measures the average closing price of a number of candles and smooths the price fluctuation.
  2. RSI: identifies if a price is overbought or oversold by measuring how much a price changes strongly
  3. OBV: Measures buying and selling pressure
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#489
  1. What is MACD and how is it used?
  2. What is the difference between MACD and RSI?
  3. What is OBV and how is it used?

  1. MACD (Moving Average Convergence Divergence) , its used to follow the buying and selling flow of the market

  2. MACD is turning around zero because it’s focused on trends (up or down) whereas RSI is between 0 and 100 and indicates correction

  3. OBV (on balance volume ) indicator for buy/sell pressure

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#490
  1. What is MACD and how is it used?

MACD is the Moving Average Convergence Divergence and is an oscillating indicator to identify short term momentum. MACD has lines between -2 to 0 to +2 and when a trend is above 0, likely momentum is bullish, and below 0 likely momentum is bearish. Signal line crossovers can also provide indications where a buy signal comes from the fast line crossing through and above the slow line.

  1. What is the difference between MACD and RSI?

MACD is focused on trends between -2 to 0 to +2. RSI is focused on corrections between 0 and 100 where above 70 is an uptrend and below 30 a downtrend.

  1. OBV or On-Balance Volume 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; a falling price should be accompanied by a falling OBV.
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#491
  1. What is MACD and how is it used?

It is an oscillating indicator that shows the difference between 2 moving averages. The bars indicate the size of the difference, either positive, negative, or close to zero. Thus the MACD fluctuates above and below zero. It is used to indicate points where to enter or exit the market. For example, a buy signal occurs when the moving average of shorter period crosses and moves above the moving average of longer period. a sell signal occurs when the moving average of shorter period crosses and moves below the moving average of longer period.

  1. What is the difference between MACD and RSI?

The RSI fluctuates between 0 and 100 (instead of below or above zero for the MACD) and provides different information. If the RSI is closer to 100 (above 70) it indicates the price might be overbought and it’s due for a correction, and if it is closer to zero (below 30) it indicates the price might be oversold and due for a bounce.

  1. What is OBV and how is it used?

The OBV measures cumulative buying and selling pressure by adding the volume on days the price increased and subtracting the volume on days the price dropped. A rising OBV is an indication that the price may continue rising (despite pullbacks), a falling OBV is an indication that the price may continue dropping.

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#492
  1. What is MACD and how is it used?

MACD is Moving Average Convergence Divergence and it’s used to quickly spot increasing short term momentum.

  1. What is the difference between MACD and RSI?

Unlike the MACD, the Relative Strength Index is an oscillating indicator contained between 0 and 100. Generally, the price is considered ‘overbought’ when the indicator is above 70 and due for a correction, and ‘oversold’, when below 30, and due for a bounce. Sometimes, the RSI will remain above 70 or below 30 for a while, so the timeliness isn’t always dependable.

  1. What is OBV and how is it used?

OBV is On Balance Volume. It takes volume and measures cumulative buying and selling pressure by adding volume on up days and subtracting on down days. Ideally, the volume should confirm trends, I.e., a rising price should have a rising OBV and vice-versa.

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#493
  1. MACD is an oscillating indicator which plots the difference between 2 exponential moving averages (the MACD line) as well as the moving average of the MACD line to give the signal line. It is used as a trend-following and momentum indicator. When the MACD line crosses above or below the signal line, it can indicate a buy or sell signal respectively. A MACD line which is sustained for a period of time above or below zero indicates the trend is likely upwards or downwards respectively.
  2. RSI is also an oscillating indicator but fluctuates between 0 and 100, unlilke MACD which fluctuates above or below zero. RSI is used more to indicate trend reversals by showing when the market is overbought or oversold, whereas the MACD is more indicative of the momentum of a trend.
  3. On-Balance Volume compiles volume information into a single line by calculating the cumulative buying or selling volume. It is used to confirm trends and may also show when a trend is near a top or bottom.
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#494

  1. What is MACD and how is it used?
    Answer: MACD is a kind of oscillating indicator which is a technical analysis indicator that varies over time within a band (above and below a centerline; the MACD fluctuates above and below zero). 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. What is the difference between MACD and RSI?
    Answer: 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.

RSI shows over bought and oversold conditions wheras the MACD shows the trend

  1. What is OBV and how is it used?
    Answer: 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. 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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#495
  1. It is an oscilating indicator that follows trends and momentum indictors of the market being looked at by the user; it helps a potential investor to better conclude wether a trade would have a rewarding movement to their trade or a riskier one.
  2. The MACD moves above and below 0, where an RSI moves in between 0 and 100; RSI will show overbought or oversold items in a market, where the MACD shows momentum and general trends.
  3. It shows cumulative buying or selling pressure by adding volume or subtracting volume; it is used to show where the market is generally going contrary to if the price shows it is going with it or against it in terms of vertical movement.
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#496

  1. “A 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. “The on-balance volume indicator (OBV) takes a significant amount of volume information and compiles it into a single one-line indicator. 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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#497

The MACD is a trend following indicator. It looks at a assets momentum and shows whether a trend is up or down.

The RSI indicates whether a market is over brought or over sold, where as the MACD is used to gauge the strength of a stock price.

The OBV is a technical indicator of momentum, using volume changes to predict price predictions. Volume comes before price.

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#498
  1. What is MACD and how is it used?
    The MACD is an oscillating technical analysis indicator that varies over time within a band above and below zero. It is often used as an entry or exit indicator.
  2. What is the difference between MACD and RSI?
    The difference is that the RSI has an oscillating indicator that is 1 to 100. When it’s above 70 for a period of time, it indicates an upward trend, while when it drops below 30, a downward trend.
  3. What is OBV and how is it used?
    OBV is another indicator that measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days. It is represented by a single one line indicator.
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#499

  1. What is MACD and how is it used?
    is a kind of oscillating indicator that looks at which side of zero the MACD-line are on in the histogram below the chart. if the MACD-line are above zero for a sustained period of time, the stock is likely to trend upwards, if the MACD-line are below zero for a sustained period of time, the trend is likely down.

  2. What is the difference between MACD and RSI?
    MACD-line looks at which side of zero the MACD-line are on the histogram below the chart, while RSI-its movement is contained between zero and 100.

  3. What is OBV and how is it used?
    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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#500

  1. The moving average convergence divergence (MACD) is a kind of oscillating indicator that can help traders quickly spot increasing short-term momentum. It is either above or below the centerline indicating an uptrend or a downtrend so when it goes above the zero line it could be a used as a buy signal.

  2. The RSI is an indicator for if the market is either oversold or overbought or more neutral. An RSI reading above 70 could be a signal that a correction down is coming and below 30 that an uptrend could be coming. RSI trends from 0 to 100 and works on all timeframes. However the price could stay oversold or overbought for extended periods of time and that is why it is more accurate to look for divergances in the RSI. MACD does gives you the trend but not if market is oversold or overbought.

  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. The indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days.
    If OBV rises in an uptrend then the trend is likely to continue.

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