Archive | Technical Analysis

Bollinger Bands

Bollinger Bands

Introduction adapted from stockchart.com Developed by John Bollinger, Bollinger Bands are volatility bands placed above and below a moving average. Volatility is based on the standard deviation, which changes a volatility increase and decreases. The bands automatically widen when volatility increases and narrow when volatility decreases. This dynamic nature of Bollinger Bands also means they […]

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Moving Averages – Simple and Exponential

Moving averages smooth the price data to form a trend following indicator. They do not predict price direction, but rather define the current direction with a lag. Moving averages lag because they are based on past prices. Despite this lag, moving averages help smooth price action and filter out the noise. They also form the […]

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Moving Average Convergence-Divergence (MACD)

Developed by Gerald Appel in the late seventies, the Moving Average Convergence-Divergence (MACD) indicator is one of the simplest and most effective momentum indicators available. The MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, the MACD offers the […]

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Volume Weighted Average Price (VWAP)

Volume-Weighted Average Price (VWAP) is exactly what it sounds like: the average price weighted by volume. VWAP equals the dollar value of all trading periods divided by the total trading volume for the current day. Calculation starts when trading opens and ends when trading closes. Because it is good for the current trading day only, […]

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Stochastic Oscillator

Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. According to an interview with Lane, the Stochastic Oscillator “doesn’t follow price, it doesn’t follow volume or anything like that. It […]

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Technical Indicator

What Is a Technical Indicator? A technical indicator is a series of data points that are derived by applying a formula to the price data of a security. Price data includes any combination of the open, high, low or close over a period of time. Some indicators may use only the closing prices, while others […]

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Relative Strength Index (RSI)

Developed J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. Traditionally, and according to Wilder, RSI is considered overbought when above 70 and oversold when below 30. Signals can also be generated by looking for divergences, failure […]

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Symbol Bid Ask Spread
EURUSD 1.19920 1.19940 2
GBPUSD 1.35340 1.35370 3
USDCAD 1.22560 1.22590 3
USDJPY 111.400 111.420 2
USDCHF 0.96080 0.96110 3
AUDUSD 0.80520 0.80550 3
NZDUSD 0.73650 0.73700 5
EURGBP 0.88590 0.88620 3
EURCHF 1.15240 1.15270 3
EURJPY 133.600 133.630 3
AUDJPY 89.700 89.750 5
GBPJPY 150.770 150.830 6
XAUUSD 1311.31 1311.71 40
XAGUSD 17.267 17.281 1.4