Mean Reversion Trading: When Fading Extremes Pays Off
A stock gaps down six percent on no fresh news, tags the lower Bollinger Band, and its 14-period RSI prints 22. Two experienced traders pull up the same chart. One…
A stock gaps down six percent on no fresh news, tags the lower Bollinger Band, and its 14-period RSI prints 22. Two experienced traders pull up the same chart. One…
Vertical Horizontal Filter, usually shortened to VHF, is a trend-strength indicator built to separate directional movement from noisy back-and-forth movement. It does not try to predict the next bar. Instead,…
Choppiness Index is a volatility structure indicator used to judge whether price is moving in a directional way or spending more time chopping sideways. Its main job is not to…
Detrended Price Oscillator, usually shortened to DPO, is an oscillator designed to remove trend so you can focus on shorter term price cycles. Instead of asking whether price is trending…
Williams %R is a momentum oscillator that measures where the current close sits inside a recent high to low range. It is a fast way to answer one question: is…
The Stochastic Oscillator is a momentum indicator that measures where the current close sits relative to a recent high to low range. It does not try to say whether price…
Most indicators answer one narrow question. The Chande Trend Meter is built to answer a broader one: is this market trending, and if so, how strongly. It does that by…
Time series forecasting is the process of using past observations to estimate future values. In markets, the observations are typically price, returns, volume, volatility, spreads, or derived indicators like moving…
Parabolic SAR is a trend-following indicator that plots a series of dots above or below price. SAR stands for “stop and reverse,” which describes its original purpose: it acts like…
The Alligator Indicator is a trend timing tool popularized by Bill Williams. It overlays three smoothed moving averages on price, then shifts each average forward by a fixed number of…