Trading Band Crossover

Trading band is based on an Exponential Moving Average. (Defined in MV2-C) Draws a P- period EMA of closing prices, then an exact copy of the EMA shifted S% above and below the EMA.

Bollinger Band Crossover

Trading band constructed based on Volatility of price. Standard deviation of price is used as the measure of volatility.

Bollinger Band with ADX Trend

ADX is used to detect a retracement from the trend, and Bollinger Bands are used to establish entry and exit points after the retracement is detected using ADX.

+100/-100 Crossover

This is a classic interpretation of CCI. Crossings from above +100 to the downside constitute a short, and crossings from below -100 to the upside constitute a long. The period used for CCI and crossover levels can be optimized.

Commodity Channel Index Divergence

Draws CCI indicator (see CCI-P), then the Divergence indicator pivot point is used to isolate.

Commodity Channel Index Fibonnaci Peaks

Plot 8, 13, and 21- Period oscillators on top of one another. Confirms the existence of peaks (or valleys) conforming to cycles in all three time frames.

Commodity Channel Index Peaks

Indicator that measures overbought vs. oversold levels by virtue of today’s price distance from the statistical mean price.

Chaikin Level Divergence

Draw the Chaikin Oscillator (see CHA-P). The divergence pivot point method is used to identify divergence from a prior pivot point of the oscillator.

Chaikin Level Peaks

The Chaikin Oscillator rises when prices advance on higher volume, and goes negative on price declines on high volume. A reversal in the indicator indicates that the current trend in accumulation or distribution could be reversing.

Candle Pattern: Belt Hold

Pattern formed by a range which extends in the direction of the close. A Bearish Belt Hold exists when the High equals the Open and the Low is below the close. Similarly for the Bullish Belt Hold.

Candle Pattern: Counter Attack

Occurs when the market reverses direction violently to arrive at the same valuation as a prior period.

Candle Pattern: Doji Star

Occurs when the closing price equals the open.

Candle Pattern: Engulfing Line

Occurs when today’s range encloses or ``engulfs’’ the prior day’s range, thereby indicating great market strength in the direction of today’s close.

Candle Pattern: Harami

Just the opposite of an engulfing line; yesterday’s body engulfs today’s, with opposite color for the two.

Candle Pattern: Hammer/Hanging Man

The Hammer pattern is formed by a short body at the top of a long tail. They indicate indecision in the direction of the trend. A solid hammer which occurs at the end of an uptrend is called a Hanging Man. This type of Hammer indicates the market’s propensity to sell of sharply.

Candle Pattern: Inverted Hammer

Just the opposite of Hammers; a small body occurs at the bottom of a long tail.

Candle Pattern: Morning/Evening Star

A Morning Star is formed when a small body is located between two other bodies so that it appears below (or above) the other two. An Evening Star generates a sell signal when a small body is located above two surrounding candles.

Candle Pattern: Piercing Line/Dark Cloud

Occurs when today’s candle ``pierces’’ the range of the prior day, in the opposite direction. The Bearish case is also called a Dark Cloud Cover.

+DI/-DI Crossover

Directional Movement comprises ADX, and has two components, +DI to measure movement to the upside, and -DI, for the opposite. When these two lines cross each other, the market is typically moving from one trend direction to the other. The period for DMI is optimizable.

Gap Breakout

This system issues a long signal when price gaps up by a certain percentage or multiple of ATR (average true range). Similarly, it issues a short signal when price gaps down by a specific amount, or more.

Kirshenbaum Band Crossover

Measures market volatility using standard error of linear regression lines of the close. The effect is that they measure the volatility around the current trend.

MACD Divergence

Looks for divergence between the MACD line and price. This divergence is measured using the pivot point algorithm.

MACD Crossover

The MACD is constructed by plotting the difference between a 12-period exponential moving average and a 26-period moving average. A third moving average (the ``trigger’’ line) generates trading signals when the MACD line crosses the trigger , in the direction of MACD.

Money Flow RSI Breakout

This indicator has long been a favorite among AIQ users, and basically measures the amount of money flowing in or out of a particular stock. When Money Flow moves through zero, it is a sign that a given security is being accumulated or distributed. A separate moving average is provided to smooth the swings. The period used for MFR and the moving average period are both optimizable.

Money Flow RSI Divergence

Divergence, applied to Money Flow RSI. The system trades when MFR diverges from price. The same parameters can be optimized for MFR-D as for MFR-B. This system makes an excellent reversal indicator.

Momentum Peaks

Momentum measures the amount a security’s price has changed over the past p periods. This system uses the peak signal method.

Two Moving Average Crossovers

The ``faster’’ or shorter-term moving average will rise above a longer-term one, thus giving rise to a system that is in the market on the side of the faster average.

Price Rate of Change Crossover

Measures essentially the same phenomenon as MOM-P, but expresses the relative price movement as a percentage.

Price Rate of Change Divergence

Not available.

ROC +6/-6 Crossover

A classic +6%/-6% crossover system, which trades when the oscillator moves through +6% to the downside (short) and -6% to the upside (long). The period for ROC and the percentage level can both be optimized.

RSI +70/+30 Crossover

The Relative Strength oscillator (RSI), as defined by Welles Wilder, using a classic crossover interpretation. The system trades when RSI crosses through +30 to the upside (long) and +70 to the downside (short). The levels and periods for the RSI calculation can be optimized.

Relative Strength Index Divergence

Divergence trading signals occur when an indicator is sloping away, or ``diverging’’ from the price trend.

Relative Strength Index Peaks

Based on the notion of comparing ``up’’ days with ``down’’ days, according to the theory that overbought levels follow a disproportionate number of periods in which the market advanced, whereas oversold levels generally occur after the market has declined for a significant number of periods.

Random Walk Breakout

Random Walk was defined in Technical Analysis Of Stocks and Commodities by Michael Poulos (see TASC, January 1992 and September 1992). Random Walk calculates how much price should move over a given period if its movement were purely random. When price moves past this level, it can be assumed to be trending in that direction and the system will issue a signal. The maximum look-back period for Random Walk is optimizable in this system. An excellent system.

Stop and Reverse System

Stop and Reverse is defined in "New Concepts in Technical Trading Systems", and is a good system for calling reversals after long moves. SAR detects changes in direction by tightening stops o a position until it is exited by a crossing through the stop level. There are several parameters which comprise SAR, all of which are optimizable.

STO +80/+20 Crossover

This is the classic Stochastics system which was included in our original systems for MetaStock. The system trades when Stochastics crosses +80 to the downside (short) and +20 to the upside (long). All parameters, including levels, %K and %D periods can be optimized.

Stochastic Divergence

The stochastics plot is drawn, and then divergence is measured using the indicator pivot point algorithm.

STO Classic %D

Moving Average Ts when the %D line crosses the %K line above given level (short) or below a given level long). Another "classic" interpretation of stochastics. The signals generated by STO-M are slower than those given by STO-P, but are also less likely to trade against the trend.

Stochastic Peaks

Stochastics measures the relative position of today’s close to the range of price action over the past p periods, and are based on the observation that price will typically extend to the end of a range before reversing.

Long Term Trend Line Breaks

Built-in automatic trendline algorithm generates a ``breakout’’ signal when an existing trendline is violated.

Medium Term Trend Line Breaks

Same as TLN-BL, except medium trend lines.

Short Term Trend Line Breaks

Same as TLN-BL, except short trend lines.

Long Term Trend Line Reversal

Built-in automatic trendline algorithm generates a ``reversal’’ signal at the long (medium/short) term trendline.

Trend Rule Trading

Looks for higher pivot points to go long and lower pivot points to go short, in the medium timeframe.

TRIX Divergence

Divergence on the TRIX (Triple Exponential Moving Average) plot using the pivot point algorithm.

TRIX Momentum Fibonnaci Peaks

The 8-period, 13-period, 21-period TRIX momentum oscillators are used to arrive at the composite indicator.

TRIX Momentum Peaks

Yesterday’s value of TRIX is subtracted from today’s value to obtain a ``momentum’’ curve which gives early signals.

Volume Accumulation Percent Breakout

Measures relative change in accumulation and distribution to detect places where the market is changing its perception about a security by taking a more active role in buying and selling it, relative to the immediate preceding time period.

Volume Accumulation Percent Band Crossover

A move above the threshold occurs at the same w/ time as price crosses a trading band.

Volume Accumulation Percent Divergence

The volume accumulation percent plot is drawn, and then divergence is measured using the indicator pivot point algorithm.

Volume Climax

System that attempts to identify situations in which prices reverse in the opposite direction as volume declines.

Volume Trend

Defines the average volume move over a period of time, then notes the values which occur above this level. A signal is given when price increases or declines at the same time as volume rises or falls.

Volatility Breakout

Based on the fact that as markets break out to new highs or new lows, they typically exceed current volatility and range movements by some amount.

WIL %R -20/-80

William’s %R oscillator, with classic crossover Crossover. The system trades (long) when William’s %R crosses -80 to the upside, and short when the oscillator crosses -20 to the downside. The values for period and crossover levels are both optimizable in this system.

Williams %R Divergence

Williams %R ( an ``inverted, nonsmoothed’’ Stochastic oscillator) plot is drawn and then divergence is measured using the pivot point algorithm.

Williams %R Peaks

Turning points of the Williams %R are determined.