Reading Assignments: Indicators

TA & Algo Trading Course
#121

  1. MACD (moving average convergence divergence) is an oscillating indicator that fluctuates above and below zero. It is used to follow trends and to indicate momentum. One basic strategy is to simply look if its above or below zero. If above zero, trend is likely up and vice versa. Another strategy is to look at the two lines and follow its crossovers- a buy signal is when fast line crosses through and above slow line, and vice versa for a sell signal.

  2. The difference between MACD and RSI is both its illustration of its graph and what it represents. Both are oscillators, but in the RSI, the range is between zero and 100. In RSI, you interpret the price as either “overbought” or “oversold” and come to conclusions based on that.

  3. OBV takes a lot of volume information and compiles into a single one-line indicator. It measures cumulative buying/selling pressures. Ideally, volume should confirm trends. Sometimes OBV will behave differently than the price trend and this will be valuable information that can help one come up with conclusions.

#122

  1. MACD (moving average convergence divergence) is made up of two moving averages. It is used to determine points in the price chart where trends may be accelerating forming strong or likely entry/exit points.

  2. RSI (relative strength index) differs in that it is an indication for whether a stock is over or under bought. The scale is between 0 and 100, above 70 indicating an overbought position and under 30 an oversold position.

  3. OBV (On-balance volume) takes a lot of volume information and compiles it into a one line indicator. The indicator measures cumulative buying/selling pressure by adding the volume on up days and subtracting volume on down days.

#123

  1. What is MACD and how is it used?
    Moving Average Convergence Divergence

  2. What is the difference between MACD and RSI?
    MACD strategies use the relation of the line to Zero and to relation to other MACD lines (cross-through). Relative Streanght Index (RSI) scores the asset histogram with a value of 0 to 100. The RSI can indicate when the asset is overbought or over sold.

  3. What is OBV and how is it used?
    OBV stands for On-Balance Valume. The OBV measuers the cumulative buying/selling pressure and should confirm other trends.

#124

1. What is MACD and how is it used?
The Moving Average Convergence Divergence (MACD) is used to spot trends and momentum. It is an oscillating indicator.

2. What is the difference between MACD and RSI?
The MACD is used to spot the overall trend and The Relative Strength Index (RSI) is used to spot overbought and/or oversold conditions.

3. What is OBV and how is it used?
On-Balance Volume (OBV) calculates cumulative buying and selling pressure. The volume should confirm trends. It is similar to saying follow the money. The money flow helps indicate the basic trend of an instrument (ex: stock or crypto).

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#125

  1. What is MACD and how is it used?
    The MACD is an oscillating indicator, fluctuating above and below zero. It is both a trend-following and momentum indicator. It helps you see the trend and while it is a lagging indicator, it can show buy or sell signals depending on when the fast lines crosses the slow line (above or below).

  2. What is the difference between MACD and RSI?
    RSI shows the overbaught and oversold. It is more effective to use RSI and MACD together, to understand price changes within a trend.

  3. What is OBV and how is it used?
    OBV is an indicator that compiles volume information into a single line and measures cumulative buying/selling pressure. It can be used to confirm a trend, detect a possible trend change, also it might be useful to detect when you are close to the top or bottom.

#126

  1. The MACD is an oscillating indicator, fluctuating above and below zero. It is both a trend-following and momentum indicator. Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.Signal line crossovers 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. The MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows.

  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. If OBV is rising and the price isn’t, price is likely to follow the OBV 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.

#127
  1. What is MACD and how is it used?

MACD (Moving Average Convergence Divergence) is an oscillating indicator, fluctuating above and below zero. When it is above zero for sustained period of time, it indicates the uptrend and when it is below zero, it indicate downtrend. Also you can identify potential buy and sell signals by observing crosses of zero in combination with signal line crossovers. That is why MACD is both a trend-following and momentum indicator.

  1. What is the difference between MACD and RSI?

The RSI is also an oscillator, but because its movement is contained between zero and 100, it provides some different information than the MACD. It has only one signal line and it shows us when price action is in „overbought“ or „oversold“ teritory.

  1. What is OBV and how is it used?

On-Balance Volume (OBV) takes a lot of volume information and compiles it into a single one-line valuable indicator. The indicator measures cumulative buying/selling pressure by adding the volume on up days and subtracting volume on down days. Ideally, a rising price should be accompanied by a rising OBV; and a falling price should be accompanied by a falling OBV. If this is not the case, trend reversal might follow.

#128

  1. What is MACD and how is it used?
    Moving Average Convergence Divergence. it uses two moving averages, when they cross it’s a indicator the trend may go up.

  2. What is the difference between MACD and RSI?
    RSI measures the price change between the recent high and lows, where as the MACD looks at two moving averages.

  3. What is OBV and how is it used?
    On-Balance Volume; it takes volume information and compiles it into a one-line indicator which measures cumulative buying/selling pressure by adding the volume on up days and subtracting it on down days.

#129
  1. What is MACD and how is it used?
  • Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price
  1. What is the difference between MACD and RSI?
  • The MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows.
  1. What is OBV and how is it used?
  • On-Balance Volume (OBV) is a trading indicator that uses volume flow to predict changes in stock price
#130
  1. What is MACD and how is it used?
    The MACD (Moving Average Convergence Divergence) is made up of two different moving averages that help traders identify points on a price chart where a trend might be accelerating.
  2. What is the difference between MACD and RSI?
    Trader tend to use convergence on MACD to determine the accelerate point and use RSI to identify the “overbought” or “oversold” corresponding “correction” and “bounce” entry points.
  3. What is OBV and how is it used?
    OBV is a volume indicator imply cumulative buying or selling pressure. If OBV is rising and the price isn’t, price is likely to follow the OBV 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.
#131
  1. Moving Average Convergence Divergence, a trend-following and momentum indicator. it is used to get indicators for buying and selling.
  2. MACD focusses on the acceleration of price movement and the RSI on the “overbought”/“oversold” situation.
  3. On-Balance Volume, a single line indicator with focus on the cumulative buying/selling pressure
#132

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

  2. What is the difference between MACD and RSI?
    The MACD measures the relationship between two EMAs, while the RSI ( Relative Strength Index) measures price change in relation to recent price highs and lows.

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

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#133

1 Moving Average Convergence/Divergence (MACD) is the difference between two moving averages.
It’s made of 2 moving averages (short term and long term) and when they crosses this is a signal that is usually used as a buy/sell indicator.

2 RSI’s movement is comprised between 0 and 100; MACD movement moves above and below 0.
RSI calculates the price change in relation to the fluctuation price (highs and lows).
MACD calculates the trend and acts as a momentum indicator.

3 OBV shows the volume information and compiles it into a single one-line indicator that adds the volume on up days and subtracts volume on down days.

#134
  1. What is MACD and how is it used?

MACD stands for : Moving Average Convergence Divergence; It tells the general direction of the price of an asset / stock / cryptocurrency etc, in the short - medium term. It helps to read if the price trend to go upwards, downwards or sideways.

  1. What is the difference between MACD and RSI?
    RSI movements are contained between zero and 100 and the information that provides is if an asset is overbought or oversold under that context. Together with MACD it adds a bit more information to understand the trend of the price.

  2. What is OBV and how is it used?

OBV stands for “On Balance Volume”. It compiles different information such as cumulative buying / selling pressure of the price of the asset, stock etc; number of units of the asset of the market in question. Ideally it confirms price trends during a certain period of time. All these informations can be compiled in one single line indicator.

#135

  1. MACD (Moving Average Convergence Divergence) has two lines, a fast and a slow line. These two lines represent two moving averages and have different time periods. The difference between these two lines are shown as bars below or above zero in a histogram. Potential buy signals occur when the MACD moves above zero, and when it crosses below zero this could be a potential sell signal.

  2. MACD shows the trend of the market while the RSI indicates when the market is overbought or oversold.

  3. On-Balance Volume is an indicator that measures cumulative buying and selling pressure, and puts this information into a one-line indicator. OBV should ideally confirm trends, where a rising price is accompanied by a rising OBV, and a falling price would be accompanied by a falling OBV.

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#136

  1. What is MACD and how is it used?
    The MACD is an indicator oscillating around zero which consists of 2 lines, Fast and Slow. These lines are based on different moving averages. If both lines are above 0, the trend is up and if both lines are below 0 the trend is down. If the fast line crosses above the slow it is a buy signal and vice-versa.

  2. What is the difference between MACD and RSI?
    The RSI (Relative Strength Index) is on a scale of 0-100 with anything over 70 classed as ‘overbought’ and less than 30 is ‘oversold’. These trends can stay active for long periods of time in extended bull or bear markets but can have some relevance when creating a strategy for trading.

  3. What is OBV and how is it used?
    OBV is On Balance Volume. This measures cumulative buy/sell pressure. This creates a trend line which price usually follows. If price falls but the OBV trend is intact, then there will probably be a positive correction in price.

#137

  1. Moving Average Convergence Divergence - the MACD is an oscillating indicator fluctuating above and below zero. It is a trend-following and momentum indicator. A MACD has two signal 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. RSI is a momentum indicator which goes from 0 to 100, it indicates if the price is oversold or overbought/ due for a correction or due for a bounce. MACD tends to shows the strength of a trend. The MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows.

  3. On Balance Volume can indicate the sentiment within the market over time and provide further signals. A rising price suggests a rising OBV and vice versa.

#138
    1. Moving Average Convergence/ Divergence line (MACD) is a trend following and momentum indicator that shows the average price using Exponential Moving Average (EMA) lines to give the short to medium trend. It is made up of two liunes, typically a there is 12 day EMA minus 26 day EMA, a signal line which is a 9 day EMA of the MACD line. It also uses histogram bars to show the differences between the lines.
    1. RSI measures the performance of one asset against another on a scale between 0-100. The MACD uses the price history of an asset to calculate an average price.
    1. On Balance Volume (OBV) is a calculation that indicates market consensus made using trading volume. If the OBV is high and a price remains the same it can indicate a price shift upwards. If OBV is low it can indicate a price shift downwards. Alternatively a low OBV with a price increase can indicate a large institutional investment.
#139

  1. MACD is an oscillating indicator that circles around zero (+/-) and can reach a theoretically infinite magnitude. It follows trends and indicates trade momentum. When MACD is above zero for a time it is probably uptrending, conversely when it is below zero for a time it is probably downtrending. It also has a fast line and a slow line which provide additional buy/sell signals.
    Signals include:
    Buy: a) When MACD crosses up above zero, b) when fast line crosses up and above slow line
    Sell: a) When MACD crosses down below zero, b) when fast line crosses down and below slow line

  2. While MACD follows price movement, RSI indicates how much an asset is overbought or oversold within the time period being studied; a measure of magnitidue of price changes. It ranges between 0-100.

  3. On-Balance Volume (OBV) is a momentum indicator that which uses volume flow to predict changes in price. It shows market sentiment that can predict a bullish or bearish outcome. When price action is net positive within a time period the OBV will add up previous trade volume to current OBV while subtracting previous trade volume from current OBV when price action was net negative in that time period. Thereby when correlated with price action the OBV produces more actionable trade signals than just the volume indicator alone. Generally, when the OBV deviates from price action the price movement will likely follow OBV trend.
    Signals:
    When price action is going up and OBV is going up, uptrending.
    When price action is going down and OBV is going down, downtrending.
    When price action is going up but OBV is going down it can be a sell signal.
    When price action is going down but OBV is going up it can be a buy signal.

#140

1. What is MACD and how is it used?
Moving average convergence divergence. Its an oscillating indicator used for technical analysis. it shows the stock movement above and below zero, above is trending favorably and below is not.
2. What is the difference between MACD and RSI?
RSI travels between 30-70 opposed to MACDs zero
3. What is OBV and how is it used?
On Balance Volume, it takes the volume of the transactions and compiles them into a single line that should confirm trends.