Category: Technical Indicators

Technical indicators are mathematical calculations based on price, volume, or volatility of a security. They are used to analyze historical data and to predict future price movements. Already hundreds of indicators have been developed and new variants continue to be developed by traders with the aim of getting better analysis results. Being mathematical formulas, all indicators can be backtested on historic data to see how effective they would have been. There are various types of indicators used by different kind of traders or analysts. Common indicators are for example Moving Averages, Relative Strength Index, SMA, RSI or Bollinger Bands®. In our articles of this category you learn how to program indicators and how you can use them to improve your performance. We would like to show you how to use them effectively.

Implied Volatility: Data, Indicators and Usage

Implied volatility is the market’s expectation of future moves. This article will show you a simple way to access Refinitiv Eikon data in Tradesignal, visualise it and scan for exceptional volatility in stocks and ETFs.  Replacing historical volatility by implied volatility will give you new insights to risk management and options trading.

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Sharpe Ratio comparison of two assets

Sharpe Ratio Indicator: Scan for Performance

The Sharpe Ratio is a measure for risk-adjusted returns, developed by Nobel Laureate William F. Sharpe in 1966. It describes the volatility-adjusted excess returns of an asset over a risk-free return. This article highlights the thoughts behind the Sharpe Ratio formula and some practical applications of it when selecting different asset classes.

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Parabolic SAR with ADX

Parabolic SAR – Profit from the Parabola.

The Parabolic SAR is an indicator that uses a curve to highlight a trend. A Parabola is a symmetrical plane curve. Consequently, Parabolic motion is experienced by an object that when thrown, moves along a curved path.  In relation to charts, let’s assume the object to be the price and the curve the general motion of that price. If we

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Volatility projection Indicator

Volatility Projection

Today the market moves up, tomorrow it might move down, but is this of any importance or just random noise? This volatility projection indicator will tell you if there is something exceptional happening. Standard Deviation and Volatility Projection The standard deviation of market movements is a widely used measure to define exceptional events on the market. An example: Bollinger Bands 

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How to detect a bullish or bearish divergence

Anticipate Trend Changes early, using Bullish and Bearish Divergence

Divergences between an indicator and the price can be powerful signals for a trend change. This post will show you how to program an indicator to automatically detect and visualise a bullish and bearish divergence by using so called arrays. What is a Bullish or Bearish Divergence? A perfect example of a bullish divergence is shown on the chart below:

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