Reading Assignments: Indicators

TA & Algo Trading Course
#61

  1. MACD is an indicator in technical analysis which values oscillates above and below zero. It can be used for finding both a trend and momentum in a chart. The use of it is relatively simple. If the value of MACD above zero for a certain period of time the trend is likely up. If the value of MACD is below zero for a certain period of time the trend is likely down. Another signal which shows MACD is a potential buy (MACD goes from below zero to above zero) and sell (MACD moves from above zero to below zero) signal.

  2. The difference between MACD and RSI is the range of oscillating values (MACD from negative to positive, RSI only from 0 to 100). Because the RSI has its range from 0 to 100 it reveals some different information (values points to an overbought or oversold market). While the MACD calculates the relationship between two EMAS (exponential moving average; 26 and 12), the RSI calculate the price change in relation to the current price highs and lows.
    That being said the RSI could indicate to a change in the momentum (overbought) while the MACD still show a positive momentum (and vice versa). They both measure momentum but they calculate different factors.

  3. OBV (on balance volume) shows the cumulative buying/selling pressure by sum up the volume on up days and subtract volume on down days. It can be used for confirming trends. A rising price should have a rising OBV. A falling price should have a falling OBV

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#62

  1. MACD , short for moving average convergence/divergence, is a trading indicator used in technical analysis of stock prices it is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stockā€™s price.

  2. The MACD is primarily used to gauge the strength of stock price movement. It does this by measuring the divergence of two [exponential moving averages], commonly a 12-period EMA and a 26-period EMA while The RSI aims to indicate whether a market is considered to be [overbought] or oversold in relation to recent price levels. The RSI calculates average price [gains ]and losses over a given period of time; the default time period is 14 periods. RSI values are plotted on a scale from 0 to 100.

  3. (OBV) is a technical trading momentum indicator that uses volumeflow to predict changes in stock price.

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#63
  • What is MACD and how is it used?
    MACD is a momentum indicator while following trend. MACD has histogram chart with zero at the middle, MACD moving averages indicate potential buy or sell signals. Moving below 0 potential sell/ moving above 0 potential buy.
  • What is the difference between MACD and RSI?
    MACD- shows strenght of the market (above 0 stong buy signal).
    RSI- indicates overbought or oversold market. Higher the RSI number the overbought the market is, so potential pullback could accure.
  • What is OBV and how is it used?
    OBV - on balance volume takes volume information and compiles it to a single line indicator.
    Indicator measures cumulative buying/selling pressure. If OBV is falling then the trend down.
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#64

MACD Moving avg to smooth out the lines to see trends
RSI Relative strength ideax measuring over bought or over sold guess this can help to see if itā€™s over sold the trend might turn downwards
OBV On-Balance Volume uses volume flow to help understand trends.

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#65

  1. What is MACD and how is it used?
    MACD (Moving Average Convergence & Divergence) is the average price over a time period (20, 50, 200ā€¦ days) and it can be used as buy or sell signal when the price crosses the moving average or when the moving averages cross between each other.

  2. What is the difference between MACD and RSI ?
    They are both oscillating indicators. The MACD is a trend following and momentum indicator. The RSI (Relative Strenght Index) shows the volumes, particularly interesting during the oversold & overbought peaks (above &below 70 or even 80).

  3. What is OBV and how is it used?
    OBV (On Balance Volume) expresses the cumulative buying & selling pressure.

Now the question is: how can I see all these nice indicators on Tradingview.com?

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#66

1- MACD is an oscillating indicator, fluctuating above and below zero. When above zero for a sustained period of time, the trend is likely up; when below zero for a sustained period of time, the trend is likely down. It is used for trend-following and as a momentum indicator.

2- The RSI is another oscillator, but because its movement is contained between zero and 100, it provides some different information than the MACD. One way to interpret the RSI is by viewing the price as ā€œoverboughtā€ and due for a correction when the indicator in the histogram is above 70, and viewing the price as oversold and due for a bounce when the indicator is below 30.

3- OBV takes a lot at 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. A rising price should be accompanied by a rising OBV; a falling price should be accompanied by a falling OBV.

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#67

Bemvindo Frederico! IonT academy is amazing! I am sure you will learn a lot.

#68

1 MACD is a oscilator/indicator that is a good momentum indicator it also follows the trend (if not divergence ) .Good buy and sell indicator following the direction of the Cross point .
2 Difference between MACD and RSI is that in RSI is different calculated indications .The RSI is used for indicating when the price is overbought(when higher and expected to fall down; usually after level of 70) or oversold ( when price is expected to go up ; usually bellow 30 )
3 OBV / on balance volume is used to confirm trends / rising price should be met with rising OBV and vice-versa

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#69
  1. Moving average convergence divergence. Used to view trend of the market and momentum
  2. Since it uses a different range, it indicates different information. RSI mainly indicates direction plus overbought or oversold. RSI can indicate when itā€™s time for a trend reversal.
  3. OBV measures cumulative buying/selling pressure. It can indicate trend direction. If OBV is increasing, price should also be increasing.
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#70
  1. MACD is an oscillating indicator, fluctuating above and below zero. It is both a trend-following and momentum indicator. It is used to look at which side of the zero the MACD lines on the histogram. Above zero for a sustained period, and the trend is likely to up and vice versa.
  2. The difference between MACD and RSI is that RSIā€™s movement is between 0 and 100. Itā€™s used to tell if the price is overbought or oversold when the MACD, on the other hand, tell the trend of the price.
  3. OBV is an indicator that takes lots of volume information and compiles it into a single line indicator. The indicator measures cumulative buying/selling pressure by adding the volume on up days and subtracting the volume on down days. It is used to tell trend reversal that might not be visible in price action itself yet or confirmation to a continuation of a trend.
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#71
  • What is MACD and how is it used?
    The MACD is an oscillating indicator representing both trends and momentum.
  • What is the difference between MACD and RSI?
    The RSI represents the under or overbought strength of a market whereas the MACD represents the overall strength and trend of the market
  • What is OBV and how is it used?
    OBV is a single line representation of the buying volume which shows the buying and selling pressure of the market
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#72

1.What is MACD and how is it used?
Its an indicator, moving average convergence divergence, most used in trends an also to determine the divergence between price and swings.
2. What is the difference between MACD and RSI?
both are momentum based, macd bases its calculations on moving averages and RSI on price strength
3. What is OBV and how is it used?
On Balance Volume, used to determine the validity of a price move

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#73

  1. MACD is an oscillating indicator, fluctuating above and below zero. It is both a trend-following and momentum indicator. it is used to possibly indicate an upward or downward trend.

  2. RSI is generally used to indicate when something is overbought or oversold, while the MACD is to show if the trend is up or down.

  3. The OBV takes several different information about volume and shows the data with a single line going up or down. It is used to show volume, and to confirm other trading stratagies.

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#74
  1. MACD (Moving Average Convergence Divergence) can be used to view overall trend of the market and identify probable pull backs and reversals. MACD is comprised of 2 moving avg (fast/slow) and histogram plotted on a 0 neutral scale.
  2. MACD is generally used to gauge the trend and strength of the market. RSI is generally used to gauge overbought/oversold conditions. Although these are not exclusive uses, they 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.
#75
  1. The MACD is an indicator tool that helps to identify trend reversals and accelerations. The 2 moving averages can show the likelihood of an uptrend by being above 0 for a prolonged period of time, whereas being below 0 shows the likelihood of a down trend in the price of the asset.

The lines (fast and slow) can also flash buy and sell signals when crossing over each other. The buy signal is when the fast line crosses over the slow line, whereas when the fast line crosses below the slow line it is signaling a sell.

  1. The MACD and RSI are both oscillators, though they differ in that the RSI moves between 0 and 100, whereas the MACD moves above and below 0. 50 is the midrange on the RSI, and anything above 70 could start to indicate that the asset is overbought and due for a correction. similarly anything below 30 indicates that the asset may be oversold and could be primed for buyers to enter the market.

  2. OBV is an indicator tool that ā€œmeasures cumulative buying/selling pressureā€. The OBV can be used to show a continuation of trends that may not be as evident when simply looking at the fluctuating price of an asset. when the OBV starts to fall or flatline in an uptrend it could signal a top, where if it starts to flatline or rise during a downtrend it signals that the price may be about to rise.

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#76
  1. Itā€™s an indicator that helps identify trend in the market and also possible entry points.
  2. MACD helps to identify trend while RSI tracks overbought/oversold characteristic.
  3. OBV helps idetifying momentum by adding and subtracting volumes on a given time period.
#77

  1. MACD is Moving Average Convergence Divergence. It is an oscillating indicator which follows trends and guages momentum.

  2. The difference between MACD and RSI is the RSI indicator is measured between 0 and 100 so it provides different information such as if a financial asset is ā€œoverboughtā€ or ā€œoversoldā€

  3. OBV or On Balance Volume measures cumulative buying/selling pressure by adding the volume on up days and subtracting volume on down days.

OBV is idealistically designed to confirm trends in a select market.

#78
  1. What is MACD and how is it used? Answer: ā€œMoving Average Convergence and Divergence. It is used in trend following momentum indicator that shows the relationship between two moving price averages.
  2. What is the difference between MACD and RSI? Answer: The MACD mainly gauges the strength of price movement by measuring the divergence of two exponential moving averages (EMA) and the RSI compares bullish and bearish price momentum where signals are considered overbought above 70% and oversold when the indicator is below 30%. Itā€™s movement is contained between 0 and 100.
  3. What is OBV and how is it used? Answer: ā€œOn Balance Volumeā€. Takes volume information and compiles it into a one line indicator. It measures cumulative buying and selling pressure by adding on high volume days and subtracting on low volume days. The idea is that volume should reflect trends.
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#79

  1. The MACD is an oscillating indicator, fluctuating above and below zero. It is both a trend-following and momentum indicator.

  2. Mac D fluctuates above and below zero and RSI values are from 0 - 100.

  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. It is used to confirms trends confirm trends, rising price should be accompanied by a rising OBV; a falling price should be accompanied by a falling OBV.

#80

The MACD indicator is an oscillating indicator moving above and below the zero line. It is a trend following and momentum indicator. The difference between the MACD and RSI is the RSI movement is contained between zero and 100 and provides different information than the MACD. OBV is On-Balance-Volume, it is ideally used to confirm trends and is a measured one single indicator line of buying and selling pressure adding the volume from the up and down days.

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