Oscillators
Momentum IndicatorEach value is calculated as the difference between the values of the price after a certain time interval:
M = P 1 - P 0, whereP 1 - the closing price of the day,P 0 - the closing price of a specified number of days ago.More sensitive to price movement line with a lower order.
Commodity Channel Index (Commodity Channel Index - CCI)Normalizes schedule Momentum, dividing its value by the greatest amplitude achieved:
CCI = [X - SMA (X, n)] / [0,015 x dX], whereX = [Close + High + Low] / 3,Close - closing priceHigh and Low - max and min price for the period analyzed,dX = Sum [X i - SMA (X, n)] / n,n - the length of the period,X i - value of the price at time i,SMA (X, n) - moving average for period n.N = 8 is recommended.
The rate of change (Rate of Change - ROC)In contrast to the Momentum values are calculated as the difference is not as well as the quotient of the closing prices of the day on the closing price the previous period.
Relative Strength Index (RSI)Designed by J. Wheeler Jr.. In 1978, at the present time is one of the most popular oscillators.
RSI = 100 - [100 / (1 + RS)], whereRS = AU x / AD x,x - number of days in the period of analysis (the procedure RSI), it is recommended 8AU x - a sum of positive price changes for the periodAD x - amount of negative price changes during the period.The recommended order - 8 (in any time period). Although the author has used in his calculations, the order of 14, because the primary use of it seen on the daily charts.
Stochastic lineStochastic goal - identifying price trends and cornering by monitoring the placement of the closing prices in the last series of peaks and bottoms.The method of observation of the following fact: when prices rise, their daily closing levels tend to be closer to the value of the maximum. If prices continue to rise, and daily closing prices begin to fall, it signals the readiness of the tendency to turn.When prices fall, all the same thing only for the minima.There are three stochastic lines:% K,% D,% R. They reflect the location of the current closing price relative to the selected time period.
% K = 100 [(C1 - L5) / (H5 - L5)], whereC1 - current closing price,L5 and H5 - the lowest and the highest levels over the past 5 days.
% D = 100 CL3 / HL3, whereCL3 - a three-day sum of (C1 - L5),HL3 - a three-day sum of (H5 - L5).
% R - a modified formula for the% K.
Features analysis of Stochastics:
the intersection of% K and% D may be a good sign for the transaction
two in a row in different directions of their crossing they say that the first signal was premature, and possibly the resumption of the previous one, with a strong price movement
signals from the zones of overbought (oversold) to% K and% D - 70-80 (30-20), for% R - 90 (10)
fast line (% K) crosses the slow (% D) from the bottom up - buying
Fast crosses the slow down - for sale
the directions of both lines are the same - give direction to the dynamics of the trend
lines in different directions - an incomprehensible situation
Average on RSITo analyze them using the same methods as in the analysis of average price chart. Advantage - the limited fluctuations RSI and opportunities arise timing signals from the average of RSI, compared with the signals from the middle of the schedule of prices.
RSI and Momentum on the averageThey are used for very short periods of time (no more than an hour). The reason for constructing such oscillators - the elimination of random fluctuations in the prices that most strongly affect the calculation of the oscillator for short periods of time.
Oscillator (Oscillator - OSC)
OSC = SMA (P, m) - SMA (P, n), whereSMA (P, m), SMA (P, n) - moving average, m> n.
detects the movement of prices in a given period
On the one hand, removes all short-term price fluctuations, and, on the other hand - remove long-term trends
Example.If we are willing to trade time price fluctuations, we choose a short period of one hour, and as long, for example, the time interval in one day. Subtracting the long-period average, we lose information about the average level, which is different from one day to another. Large positive values of the indicator OSC mean high prices in relation to long-term trend, and give a buy signal. Conversely, large negative values of the indicator gives a signal to sell.
Classical signal a bullish divergence (bearish convergence). At the same time to explicitly confirmed bullish trend intersection OSC bottom-up through zero is a signal to buy (more than an early signal to the indicator turns in the direction of the dynamics of the trend is below zero). And vice versa for a bearish market.Signals against the trend - a reversal indicator of overbought and oversold zones.
Index of force (Force Index Short Term - FI)
FI = VolumeToday x (CloseToday - CloseYesterday) / CloseYesterday, whereVolumeToday - the volume of prisoners today dealsCloseToday and CloseYesterday - the closing price of yesterday and today.
For the short game is better to use the average FI with the order of 2 for long - with a 13.
The main signals - the direction and the ratio of min and max values. The direction of movement indicates the direction of the transactions and the ratio of highs and lows - because the current trend.
Characteristic signals: convergence / divergence.
signal to buy - the average of the indicator is below zero when the bull market
sigpal for sale - the average of the indicator is above zero at the bearish trend
Index Cash Flow (Money Flow Index - MFI)
MFI = 100 - [100 / (1 + MF)], whereMF - the ratio of total turnover for the periods of rising prices to the total turnover for the days of falling prices.
Regulation analysis of oscillators
Signal
Actions trader
ConfirmationValues, the following
max for the oscillatormin for the oscillator to deal warningDownUp
at least twoIntersection with a given boundary valuestoplowerIt's time to dealSalesShopping
at least oneIntersection with the center may be too late
at least two
in a bull market values of the border should be lifted, and a bear - lower
good results analysis oscillators gives fletovom market
if in a strong uptrend oscillator will show down, and the price will not go in that direction, the stronger will continue to trend upward, with a strong trend down - on the contrary
change of trend in the oscillator may greatly deceived, and the first to warn
The interaction of oscillators with the schedule of prices (here and below the top price in the figures, and an oscillator from the bottom)
Bearish convergence
Momentum IndicatorEach value is calculated as the difference between the values of the price after a certain time interval:
M = P 1 - P 0, whereP 1 - the closing price of the day,P 0 - the closing price of a specified number of days ago.More sensitive to price movement line with a lower order.
Commodity Channel Index (Commodity Channel Index - CCI)Normalizes schedule Momentum, dividing its value by the greatest amplitude achieved:
CCI = [X - SMA (X, n)] / [0,015 x dX], whereX = [Close + High + Low] / 3,Close - closing priceHigh and Low - max and min price for the period analyzed,dX = Sum [X i - SMA (X, n)] / n,n - the length of the period,X i - value of the price at time i,SMA (X, n) - moving average for period n.N = 8 is recommended.
The rate of change (Rate of Change - ROC)In contrast to the Momentum values are calculated as the difference is not as well as the quotient of the closing prices of the day on the closing price the previous period.
Relative Strength Index (RSI)Designed by J. Wheeler Jr.. In 1978, at the present time is one of the most popular oscillators.
RSI = 100 - [100 / (1 + RS)], whereRS = AU x / AD x,x - number of days in the period of analysis (the procedure RSI), it is recommended 8AU x - a sum of positive price changes for the periodAD x - amount of negative price changes during the period.The recommended order - 8 (in any time period). Although the author has used in his calculations, the order of 14, because the primary use of it seen on the daily charts.
Stochastic lineStochastic goal - identifying price trends and cornering by monitoring the placement of the closing prices in the last series of peaks and bottoms.The method of observation of the following fact: when prices rise, their daily closing levels tend to be closer to the value of the maximum. If prices continue to rise, and daily closing prices begin to fall, it signals the readiness of the tendency to turn.When prices fall, all the same thing only for the minima.There are three stochastic lines:% K,% D,% R. They reflect the location of the current closing price relative to the selected time period.
% K = 100 [(C1 - L5) / (H5 - L5)], whereC1 - current closing price,L5 and H5 - the lowest and the highest levels over the past 5 days.
% D = 100 CL3 / HL3, whereCL3 - a three-day sum of (C1 - L5),HL3 - a three-day sum of (H5 - L5).
% R - a modified formula for the% K.
Features analysis of Stochastics:
the intersection of% K and% D may be a good sign for the transaction
two in a row in different directions of their crossing they say that the first signal was premature, and possibly the resumption of the previous one, with a strong price movement
signals from the zones of overbought (oversold) to% K and% D - 70-80 (30-20), for% R - 90 (10)
fast line (% K) crosses the slow (% D) from the bottom up - buying
Fast crosses the slow down - for sale
the directions of both lines are the same - give direction to the dynamics of the trend
lines in different directions - an incomprehensible situation
Average on RSITo analyze them using the same methods as in the analysis of average price chart. Advantage - the limited fluctuations RSI and opportunities arise timing signals from the average of RSI, compared with the signals from the middle of the schedule of prices.
RSI and Momentum on the averageThey are used for very short periods of time (no more than an hour). The reason for constructing such oscillators - the elimination of random fluctuations in the prices that most strongly affect the calculation of the oscillator for short periods of time.
Oscillator (Oscillator - OSC)
OSC = SMA (P, m) - SMA (P, n), whereSMA (P, m), SMA (P, n) - moving average, m> n.
detects the movement of prices in a given period
On the one hand, removes all short-term price fluctuations, and, on the other hand - remove long-term trends
Example.If we are willing to trade time price fluctuations, we choose a short period of one hour, and as long, for example, the time interval in one day. Subtracting the long-period average, we lose information about the average level, which is different from one day to another. Large positive values of the indicator OSC mean high prices in relation to long-term trend, and give a buy signal. Conversely, large negative values of the indicator gives a signal to sell.
Classical signal a bullish divergence (bearish convergence). At the same time to explicitly confirmed bullish trend intersection OSC bottom-up through zero is a signal to buy (more than an early signal to the indicator turns in the direction of the dynamics of the trend is below zero). And vice versa for a bearish market.Signals against the trend - a reversal indicator of overbought and oversold zones.
Index of force (Force Index Short Term - FI)
FI = VolumeToday x (CloseToday - CloseYesterday) / CloseYesterday, whereVolumeToday - the volume of prisoners today dealsCloseToday and CloseYesterday - the closing price of yesterday and today.
For the short game is better to use the average FI with the order of 2 for long - with a 13.
The main signals - the direction and the ratio of min and max values. The direction of movement indicates the direction of the transactions and the ratio of highs and lows - because the current trend.
Characteristic signals: convergence / divergence.
signal to buy - the average of the indicator is below zero when the bull market
sigpal for sale - the average of the indicator is above zero at the bearish trend
Index Cash Flow (Money Flow Index - MFI)
MFI = 100 - [100 / (1 + MF)], whereMF - the ratio of total turnover for the periods of rising prices to the total turnover for the days of falling prices.
Regulation analysis of oscillators
Signal
Actions trader
ConfirmationValues, the following
max for the oscillatormin for the oscillator to deal warningDownUp
at least twoIntersection with a given boundary valuestoplowerIt's time to dealSalesShopping
at least oneIntersection with the center may be too late
at least two
in a bull market values of the border should be lifted, and a bear - lower
good results analysis oscillators gives fletovom market
if in a strong uptrend oscillator will show down, and the price will not go in that direction, the stronger will continue to trend upward, with a strong trend down - on the contrary
change of trend in the oscillator may greatly deceived, and the first to warn
The interaction of oscillators with the schedule of prices (here and below the top price in the figures, and an oscillator from the bottom)
Bearish convergence
 |  |  |
средний сигнал | слабый сигнал | средний сигнал |
| Если конец осциллятора близок к верхней границе, то возможно понижение цены; если - к середине значений, то возможна стабилизация курса. | Ожидаем стабилизации цены с последующим изменением тренда. | Если конец осциллятора близок к верхней границе, то возможно усиление тренда; если - к нижней, то скорее произойдет повышение; если - к середине, то равновероятно и падение, и стабилизация цены. |
Бычье расхождение
 |  |  |
средний сигнал | сильный сигнал | средний сигнал |
| Если конец осциллятора близок к нижней границе, то возможно повышение цены; если - к середине значений, то скорее понижение курса. | Ожидаем стабилизации цены с последующим изменением тренда | Если конец осциллятора близок к нижней границе, то возможно усиление тренда; если - к верхней, то возможна стабилизация курса; если - к середине, то равновероятны и рост, и стабилизация цены. |
Параллельность
 |  |  |
средний сигнал | средний сигнал | средний сигнал |
| Сильный тренд вверх | Ожидаем изменения тренда | Сильный тренд вниз |
concluding remarks
When working on a strong trend to treat the oscillator signals with the utmost care, while false signals of the oscillators tend to talk about strengthening trend.
If the trend is upward, then most of the time oscillators are overbought, if on the contrary, in the oversold territory.
When working on a strong trend to treat the oscillator signals with the utmost care, while false signals of the oscillators tend to talk about strengthening trend.
If the trend is upward, then most of the time oscillators are overbought, if on the contrary, in the oversold territory.
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