Tag: momentum
-
Momentum and Rate of Change (ROC)
Momentum and rate of change (ROC) are simple technical analysis indicators showing the difference between today’s closing price and the close N days ago. Momentum is simply the difference, Momentum = Close(today) – Close(N days ago) Rate of change scales by the old close, so as to represent the increase as a fraction, …
-
Oscillator- A Secondary Indicator
The oscillator is extremely useful in nontrending markets where prices fluctuate in a horizontal price band, or trading range, creating a market situation where most trend-following systems simply don’t work that well. The oscillator provides the technical trader with a tool that can enable him or her to profit from these periodic sideways and trendless…
-
Stock Technical Analysis: Accumulation/Distribution Line
A momentum indicator that relates price changes with volume on the assumption that the more significant the volume, the more significant the price move. The Accumulation/Distribution Line has been one of the most popular volume indicators over the years . volume precedes price. Volume reflects the amount of shares traded in a particular stock, and…