Reading Assignments: Indicators

TA & Algo Trading Course
#541

  1. MACD is the Moving Average Convergence Divergence. It gives an indication of the trend and momentum of the market. This indicator uses two lines with two different time periods (one longer, one shorter). When these lines cross, it shows reversal of trends, and is used by traders as a signal to either sell or buy.

  2. RSI is the Relative Strength Index, it is contained between the values 0 and 100. This indicator shows whether an asset is overbought and due for a low (over 70) or oversold and due for a bounce in price (under 30).

  3. OBV stands for On-Balance volumes. It is based on volumes data, and calculates the selling/buying pressure. It can indicate a coming trend: if the price is rising high, but OBV is flat, the price may be due for a correction. If the price is low, but OBV is rising, the price is likely to be at a bottom and increase.

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#542
  • What is MACD and how is it used?
    MACD is moving average convergence divergence. It exists out of two moving averages with different time periods.The points where these lines cross can be used as entry signal.
  • What is the difference between MACD and RSI?
    Relative strength index (RSI) is a number ranging from 0 to 100 and gives information on whether something is under or overbought ( >70 or <30) and might signal an incoming correction.
  • What is OBV and how is it used?
    On balance volume (OBV) measures the cumulative buying and selling pressure by adding the volume on up days and subtracting the volume on down days. It is used to confirm trends, a rising price should also have a rising OBV. Similarly a falling price should have a falling OBV
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#543

  1. What is MACD and how is it used?
    is it moving average convergence divergence indicator. It is a histogram showing the difference between a moving average and it’s moving average. This shows momentum and trend - showing signals for both buying and selling.

  2. What is the difference between MACD and RSI?
    RSI shows whether something is overbought or oversold and potentially indicate a correction.

  3. What is OBV and how is it used?
    it shows the difference on volume between up days and down days. Potentially can show trends and reversals.

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#544

  1. What is MACD and how is it used?
    MACD (Moving Average Convergence Divergence) is an indicator which takes two moving averages with different time periods, (subtracting 26 period EMA (Exponential Moving Average) and the 12 period EMA. )
    The signal line is the other line and is a 9 period EMA of the MACD.
    Where these two lines cross, it indicated buying or selling signals.
    If MACD crosses signal line moving upwards, it might indicate bull/buy signal.
    if MACD crosses signal line moving downwards, it might indicate bear/sell signal.
    Crossing above or below zero can indicate trends.

  2. The difference between MACD and RSI.
    MACD can potentially indicate where a trend is heading.
    The RSI can potentially indicate if a price is either overbought or oversold by ranging between 0 and 100, above 70 indicates overbought and might be due for a correction.
    Whie below 30 indicates oversold and might be due for a bounce.

  3. OBV (on Balance Volume) is used as an indicator to see where a trend is heading. It measures comulative buying or selling pressure by adding volume on up days and subtracting volume on down days.
    If the OBV line is flat while price is rising , it might indicate that the price is due for a correction.
    If the OBV is rising and the price is low, the price is likely to be at the bottom and due for an increase.

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#545

What is MACD and how is it used? A moving average located below the chart 2 lines and a histogram “dotted lines” indicates trends and momentum. People look at whether or not the MACD is above or below zero buy and sell signals occur when the averages cross over zero or below zero
What is the difference between MACD and RSI? RSI is an indicator for showing whether or not the price is being overbought or over sold using a scale from 0-100 numbers below 30 is telling you there is a high probability of a local bottom and numbers above 70 is signaling overbought territory
What is OBV and how is it used? On-Balance Volume, used to measure the cumulative buying and selling pressure. Adding the volume on a up day and subtracting the volume on a down day. The indicator should be confirming new trends, since all it does is follow trends based on the parameters synthesized.

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#546
  1. What is MACD and how is it used?
    Is a trend following and a momentum indicator. Has a histogram, the signal line and the MACD line. When the fast line crosses the slow line, that indicates the trend is going up and can be used as a a buy signal, the same thing happens in reverse.
  2. What is the difference between MACD and RSI?
    RSI has just a line that indicates the strength of a trend and shows when the trend is in overbought or oversold conditions (above 70 or bellow 30). MACD explained up.
  3. What is OBV and how is it used?
    Shows a line that indicates the volume up and down traded in a specific period of time (adding the up and substracting the down volume). It shows the trend direction, if OBV is up, the trend is up and vice versa.
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#547

1. What is MACD and how is it used?

Acronym for (Moving Average Convergence Divergence)

  1. Buy signals occur when MACD above zero
  2. Sell signals if it is below zero

Has two lines a fast and a slow:

  1. Fast line crosses through slow line and is above the slow line, it indicates a buy
  2. Fast line crosses through slow line and is below the slow line, it is a sell

If the MACD line is above zero for a period of time, then it is trending upwards

2. What is the difference between MACD and RSI?

  • RSI (Relative Strength Index) represent overbought (price is at 70 and due for a reversal (downward trend)) an oversold (price is at 30 and due for a reversal (upward trend)) signals.

  • Using RSI does not provide an “instantenous trend info analysis” and basing a quick decision is risky using RSI alone.

  • MACD can indicate a trend if the line is above or below zero for a period of time.

3. What is OBV and how is it used?

  • On-Balance Volume adds volume on “up days” and substracts volume on “down days”.

  • Rising price indicate rising OBV, falling price falling OBV

  • If the pricing isn’t rising but the obv is rising, then it is likely the price will rise with the obv soon.

  • If the price is rising and OBV is flat lining or falling, the price may start to decrease as it has reached its peak.

  • If the price is falling and OBV is flat lining or rising, the price could be near the bottom and is about to reverse and increase.

  • It indicates the volume or the amount of trades that are being conducted with a lot of people buying and selling. If it is a day with low trades, then it is low volume and subtracts that amount from the total volume and represents this in a line graph.

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#548

1)MACD is the moving average convergence divergence is a a trend-following and momentum indicator.
2) MACD is a indicator that spot increasing short-term momentum and trend-following, the RSI is a momentum indicator that measures the magnitude of recent price changes.
3)OBV is 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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#549

1. What is MACD and how is it used?
“Moving Average Convergence Divergence” (or “MACD” for short) is an oscillating indicator that fluctuates above and below zero to help indicate “trend-following” and “momentum”. MACD has 2 lines that are layered over the volume histogram; there’s a “slow” and “fast” line, that can cross-over each other which can indicate buy or sell signals.

2. What is the difference between MACD and RSI?
“Relative Strength Index” (or “RSI”) is different from MACD in that RSI oscillates above zero (to 100), whereas MACD oscillates above and below zero. RSI helps to indicate overbought and oversold volume, but isn’t the most timely signal.

3. What is OBV and how is it used?
“On-Balance Volume” (or “OBV”) measures the overall buying and selling pressure by adding volume on up days, and subtracting the volume on down days; this indicator “ideally” confirms trends from the other indicators.

When OBV is up & Price isn’t => this is a possible Buy Signal as the price will likely follow OBV in the future; When OBV is down or flatlining & Price is up => this is a possible Sell Signal as the price might be near the top; and when OBV is up or flatlining & Price is down -> this is a possible Buy Signal as the price might be near the bottom.

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#550
  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 used looking at which side of zero the MACD lines are on in the histogram below the chart.
  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. It provide information if an asset is overbought or oversold.
  3. On-balance volume (OBV) is a technical indicator of momentum, using volume changes to make price predictions. OBV shows crowd sentiment that can predict a bullish or bearish outcome.
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#551

[quote=“alekscp, post:7, topic:7682”]
1 :slight_smile: MACD ( Moving average convergence ) indicator acts both as a trend following and momentum indicator. Oscillations happen above and below the zero line. when the two lines intersect it provides an actionable signal. IE. When the fast line crosses the slow line from the top, it is interpreted as a buy signal. When the fast line crosses the slow line from below, it is interpreted as a sell signal.

2:)The RSI is a single indicator and oscillates between zero and 100 and can signal overbought or oversold market. The MACD uses two indicators that oscillate between -2 and 2 and when the lines cross it indicate a buy or sell signal.

3:)The OBV is an trading indicator that displays the volume of buyers in the market it represents the volume by a graph of bars indicting the volume and direction of the market green for a positive market and red for a negative market. scrolling over the bars gives the info in number format.

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#552

  1. What is MACD and how is it used?
    The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD, called the “signal line,” is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.

  2. What is the difference between MACD and RSI?
    The main difference is that RSI has values between 0 and 100 and it gives indications about phases of overbought and oversold in the market, while MACD fluctuating above and below zero and it gives more information about the trend of the market.

  3. What is OBV and how is it used?
    On-balance volume (OBV) is a technical indicator based on volume changes to make price predictions. OBV shows crowd sentiment that can predict a bullish or bearish outcome. Comparing relative action between price bars and OBV generates more actionable signals than the green or red volume histograms of Volume indicator.

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#553
  1. What is MACD and how is it used? Moving Average Convergence Divergence- it’s comprised of two moving averages, a slow and fast one and also a histogram that shows how far those two MA’s are away from one another at any given time. Its used to spot momentum shifts.
  2. What is the difference between MACD and RSI? The MACD is used to spot momentum shifts and the RSI is used to determine overbought and underbought levels.
  3. What is OBV and how is it used? On- Balance Volume. It’s used to determine trends and can be beneficial when determining bullish/bearish divergences.
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#554
  1. MACD is an oscillator and a signal indicator that shows potential trend reversals.
    once the MACD line and the signal line cross there is an opportunity to get in/out of a trade.
    The histogram helps determine if the market is bearish (negative-0) or bullish (positive+)
    2.The RSI is a trend indicator that oscilates between 0-100
    (uptrend +70 / downtrend -30)
    its calculated by previous price and current price (default 14 candles,14 days) of overbought or undersold relative to previous price action.
    3. OBV is an indicator that measures volume and indicates possible change in volume trend.
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#555

1. What is MACD and how is it used?
Moving Average Convergence Divergence (MACD) is an oscillating indicator that helps traders find short term momentum.

One simple MACD strategy is to look at which side of zero the MACD lines are on in a chart. Above zero for a sustainable period of time, and the trend is likely up; below zero for a sustained period of time, and the trend is likely down. Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

2. What is the difference between MACD and RSI?
MACD moves above and below 0.

RSI moves between between zero and 100. RSI gives information about the price - if the price is overbought and due for a correction (when a price stays around 70) or oversold and due for a bounce (when a price stays around 30).

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

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#556
  1. MACD is a osculating technical analysis indicator that varies within a band (above and below center line; MACD fluctuates above and below zero). An example on how it can be used is by looking a which side of zero in MACD lines are in the histogram below the chart. If the lines are above zero for a long period of time the trend is moving upwards.
  2. MACD is an osculating indicator that follow trend and momentum. Relative strength index (RSI) movement is contained between zero and 100. The RSI can identify when the price is overbought or oversold.
  3. On balance volume takes a significant amount of volume information and compiles it into a single -one-line indicator. Volume should confirm trends. If OBV is rising and the price isn’t its most likely will follow in the future.
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#557
  1. MACD is used to establish if the trend is weakening/ strengthening to possibly forecast a reversal of trend.
  2. The RSI indicates if a market is overbought or oversold and the MACD shows how strong the current trend is.
  3. OBV (on balance volume) is a 1line indicator showing the buying/sell pressure by adding the volume on green days and subtracting volume on red days.
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#558
  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 used to see the magnitude of the trend for over bought or over sold. The macd is used to show short term momentum.
  3. The indicator measures cumulative buying and selling pressure by adding the volume on “up” days and subtracting volume on “down” days. Just in my own words. I would feel this would be more useful on the daily and weekly not the short term like 1hr. I would feel more comfortable if I saw this on the weekly since the volatility is so high in the crypto market
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#559

  1. MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price . MACD is used to identify bullish or bearish momentum in order to identify entry and exit points for trades.

  2. The MACD measures the relationship between two Exponential Moving Averages, while the RSI measures price change in relation to recent price highs and lows.

  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.

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#560
  1. What is MACD and how is it used?
    Moving Average Convergence Divergence is a kind of oscillating indicator. On oscillating indicator is a TA indicator that varies over time within a band. It is both a trend-following and momentum indicator.
  2. What is the difference between MACD and RSI?
    MACD is used to measure the trend and strength of the market. RSI is generally used to indicate overbought/oversold market conditions.
  3. What is OBV and how is it used?
    On-Balance Volume takes a significant amount of volume information and compiles it into a single one-line indicator
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