Super Trend Indicator
by PRASHANT SHAH -
Developed by Olivier Seban, Super trend is an indicator plotted on the price chart like a moving average.Let us discuss three important components of this indicator.1: Range-price.In every bar or candle, we have four prices – Open, High, Low, Close.We have the option to select any price of above to define the trend. For example, ... Read more
Ichimoku Indicator
by PRASHANT SHAH -
Ichimoku is a very popular Japanese indicator. Let’s discuss how it is calculated and used. If we collect last 52 bars and combine then to make one candle from it, the high of the combined candle will be highest high of those 52-bars and Low of the combined candle will be lowest low of the ... Read more
Adaptive Moving Average (AMA)
by PRASHANT SHAH -
An indicator devised by Perry Kaufman explained in his book Trading System and Methods by Perry Kaufman. It is also known as Kaufman’s Adaptive Moving Average (KAMA).Rate of change (ROC) is a study that measures how much price moved up or down from previous bar. The daily rate of change captures the trend. When we ... Read more
Parabolic SAR Indicator
by PRASHANT SHAH -
PSAR indicator was developed by J. Welles Wilder.The calculation of this indicator is a bit complex, but the concept is extremely useful. I will try to simplify it and explain the logic. I will briefly explain the concept, calculation and reading.Let us think about creating an indicator that shows the trend, Using the indicator, we ... Read more
Alligator indicator
by PRASHANT SHAH -
Alligator indicator is created by Bill Williams. He was a popular trader and author. Before we discuss the indicator, let us understand an important concept. Below is a chart showing 10 day moving average at bar A. Price of the stock is 100, Moving average price is 90. What if we shift this moving average ... Read more
MAST Indicator
by PRASHANT SHAH -
Moving average is a basic and popular indicator. Let us do a case study with a simple 5-period moving average. Have a look at the example below. This a simple average of 5 prices.When the next price is printed, we drop the first price and the average is calculated for last 5 prices that includes ... Read more
