MACD - Parabolic SAR - ROC - ++ Flashcards
MACD values
- MACD Line: (12-day EMA - 26-day EMA)
- Signal Line: 9-day EMA of MACD Line MACD
- Histogram: MACD Line - Signal Line
EMA
- SMA: 10 period sum / 10
- Multiplier: (2 / (Time periods + 1) ) = (2 / (10 + 1) ) = 0.1818 (18.18%)
- EMA: {Close - EMA(previous day)} x multiplier + EMA(previous day).
Specific percentage for an EMA
Time Period = (2 / Percentage) - 1 3% Example: Time Period = (2 / 0.03) - 1 = 65.67 time periods
- Short term MA crosses above the long term MA
- Short term MA crosses below the long term
- Golden cross
- Dead cross
Bollinger Bands
20 days MA
Bullish divergence (MACD)
A bullish divergence forms when a security records a lower low and the MACD forms a higher low
Bearish divergence (MACD)
A bearish divergence forms when a security records a higher high and the MACD Line forms a lower high
Rising SAR
- Prior SAR: The SAR value for the previous period
- Extreme Point (EP): The highest high of the current uptrend
- Acceleration Factor (AF): Starting at .02, AF increases by .02 each time the extreme point makes a new high. AF can reach a maximum of .20
- Current SAR = Prior SAR + Prior AF(Prior EP - Prior SAR)
Falling SAR
- Prior SAR: The SAR value for the previous period
- Extreme Point (EP): The lowest low of the current downtrend
- Acceleration Factor (AF): Starting at .02, AF increases by .02 each time the extreme point makes a new low. AF can reach a maximum of .20
- Current SAR = Prior SAR - Prior AF(Prior SAR - Prior EP)
ROC
[(Close - Close n periods ago) / (Close n periods ago)] * 100
Price channel
- Upper Channel Line: 20-day high
- Lower Channel Line: 20-day low
- Centerline: (20-day high + 20-day low)/2
- Double Top Reversal
- Double Bottom Reversal
- Head and Shoulders Top (Reversal)
- Head and Shoulders Bottom (Reversal)
- Falling Wedge (Reversal)
- Rising Wedge (Reversal)
- Rounding Bottom (Reversal)
- Triple Top Reversal
- Triple Bottom Reversal
- Bump and Run Reversal (Reversal)
- Flag, Pennant (Continuation)
- Symmetrical Triangle (Continuation)
- Ascending Triangle (Continuation)
- Descending Triangle (Continuation)
- Rectangle (Continuation)
- Price Channel (Continuation)
- Measured Move - Bullish (Continuation)
- Measured Move - Bearish (Continuation)
- Cup with Handle (Continuation)
TRIX
Triple exponentially smoothed moving average
TRIX definition
1-period percentage rate-of-change for a triple smoothed exponential moving average (EMA), which is an EMA of an EMA of an EMA
15 period TRIX
- Single-Smoothed EMA = 15-period EMA of the closing price
- Double-Smoothed EMA = 15-period EMA of Single-Smoothed EMA
- Triple-Smoothed EMA = 15-period EMA of Double-Smoothed EMA
- TRIX = 1-period percent change in Triple-Smoothed EMA
StochRSI calculation
StochRSI = (RSI - Lowest Low RSI) / (Highest High RSI - Lowest Low RSI)
CCI
Commodity Channel Index
CCI calculation
- CCI = (Typical Price - 20-period SMA of TP) / (.015 x Mean Deviation)
- Typical Price (TP) = (High + Low + Close)/3
- Constant = .015
CCI mean deviation
There are four steps to calculating the Mean Deviation. First, subtract the most recent 20-period average of the typical price from each period’s typical price. Second, take the absolute values of these numbers. Third, sum the absolute values. Fourth, divide by the total number of periods (20)
CCI use
(CCI) can be used as either a coincident or leading indicator
ATR calculation
- Current ATR = [(Prior ATR x 13) + Current TR] / 14
- Multiply the previous 14-day ATR by 13
- Add the most recent day’s TR value
- Divide the total by 14
ATR methods
- Method 1: Current High less the current Low
- Method 2: Current High less the previous Close (absolute value)
- Method 3: Current Low less the previous Close (absolute value)
Pivot Points for 1, 5, 10 and 15 minute charts
Use the prior day’s high, low and close
Pivot Points for 30 and 60 minute charts
Use the prior week’s high, low and close
Pivot Points for daily charts
Use the prior month’s data
Standard Pivot Points
- Pivot Point (P) = (High + Low + Close)/3
- Support 1 (S1) = (P x 2) - High
- Support 2 (S2) = P - (High - Low)
- Resistance 1 (R1) = (P x 2) - Low
- Resistance 2 (R2) = P + (High - Low)
Fibonacci Pivot Points
- Pivot Point (P) = (High + Low + Close)/3
- Support 1 (S1) = P - {.382 * (High - Low)}
- Support 2 (S2) = P - {.618 * (High - Low)}
- Support 3 (S3) = P - {1 * (High - Low)}
- Resistance 1 (R1) = P + {.382 * (High - Low)}
- Resistance 2 (R2) = P + {.618 * (High - Low)}
- Resistance 3 (R3) = P + {1 * (High - Low)}
Demark Pivot Points
- If Close
- If Close > Open, then X = (2 x High) + Low + Close
- If Close = Open, then X = High + Low + (2 x Close)
- Pivot Point (P) = X/4
- Support 1 (S1) = X/2 - High
- Resistance 1 (R1) = X/2 - Low
Arms Index - TRIN - Trading Index
(advances / declines) / (advancing volume / declining volume)
(advances / declines) / (advancing volume / declining volume)
- Advances: number of stocks in the index that closed up on the day
- Declines: number of stocks in the index that closed down on the day
- Advancing Volume: total volume of advancing stocks
- Declining Volume: total volume of declining stocks
TRIN - Low readings, below 1, show relative strength in the AD Volume Ratio. High readings, above 1, show relative weakness in the AD Volume Ratio
In general, strong market advances are accompanied by relatively low TRIN readings because up-volume overwhelms down-volume to produce a relative high AD Volume Ratio
TRIN - Overbought / Oversold
Depends on the scale
SPDR
- Spider / Spiders
- Managed by SSgA
- Trademark of S&P
McClellan Oscillator
The McClellan Oscillator is a breadth indicator derived from Net Advances, which is the number of advancing issues less the number of declining issues
McClellan Oscillator Calculation
- Ratio Adjusted Net Advances (RANA): (Advances - Declines)/(Advances + Declines)
- McClellan Oscillator: 19-day EMA of RANA - 39-day EMA of RANA
- 19-day EMA* = (Current Day RANA - Prior Day EMA) * .10 + Prior Day EMA)
- 39-day EMA* = (Current Day RANA - Prior Day EMA) * .05 + Prior Day EMA)
- * The first EMA calculation is a simple average
Inflationary Relationships
- A POSITIVE relationship between bonds and stocks Bonds usually change direction ahead of stocks
- An INVERSE relationship between bonds and commodities
- An INVERSE relationship between the US Dollar and commodities
Key intermarket relationships during a deflationary environment
- An INVERSE relationship between bonds and stocks
- An INVERSE relationship between commodities and bonds
- A POSITIVE relationship between stocks and commodities
- An INVERSE relationship between the US Dollar and commodities
Staples/Discretionary Ratio
The consumer discretionary sector tends to outperform when the economy is buoyant and growing and underperforms when the economy is struggling or contracting
