Plain-English guides to technical indicators, settings, chart behavior, and practical trading rules for trend following and breakout strategies.
A moving average crossover is one of the simplest ways traders try to separate trend from noise. You plot two moving averages on the same chart, a faster one that…
A Moving Average Ribbon is not a single indicator line. It is a group of moving averages plotted together, usually from fast to slow periods, so you can see trend…
A Moving Average Envelope is a pair of bands plotted at a fixed distance above and below a moving average. Think of it as a simple channel that rides the…
The Average Directional Index (ADX) is a trend strength indicator. It answers one narrow question: how strong is the current trend, regardless of whether the trend is up or down.…
The Directional Movement Index, or DMI, measures one thing above all: whether price is actually moving in a direction, and if it is, which side is in control. J Welles…
McGinley Dynamic Moving Average is an adaptive moving average designed to stay closer to price when the market accelerates and smooth out when the market slows, so it behaves more…
ZLEMA is one of those indicators that looks like a small tweak but changes the feel of your chart. If you have ever watched a clean breakout and felt your…
Most moving averages force the same compromise: smooth the noise and accept lag, or react faster and accept more whipsaws. The Variable Index Dynamic Average (VIDYA) is one of the…
Most moving averages force you into one tradeoff: smooth the noise and accept lag, or react faster and accept more whipsaws. The Adaptive Moving Average AMA tries to cheat that…
Most traders like moving averages for one reason: they turn noisy price action into a clearer line you can react to. The problem is lag. The smoother the line, the…