TECHNICALINDICATOREXPLANATION

Indicator Explanation
AdaptivemovingaveragesadjustperiodorweightingsinordertomakeMA
be smooth and not lag too much behind the price. AMA changes its
sensitivity to price fluctuations. Averagebecomes more sensitive during
FractalAdaptive
1 periods when price is moving in a certain direction and becomes less
movingaverage
sensitivetopricemovementwhenpriceisvolatile.
AbuysignalisgeneratedwhenthepricegoeshigherthantheAMA,while
asellsignalisgeneratedwhenthepricestaysbelowtheAMA.
TheAroonindicatorsmeasurethenumberofperiodssincepricerecordedan
xdayhighorlow.Therearetwoseparateindicators:AroonUpandAroon
Down.TheAroonindicatorsfluctuateabove/belowacenterline(50)andare
2 Aroon boundbetween0and100.
AbullishsignalisgeneratedwhenAroonUpisabove50andAroonDown
isbelow50.AbearishsignalisgeneratedwhenAroonUpisbelow50and
AroonDownisabove50.
Bollinger Bands are volatility bands placed above and below a moving
average.BollingerBandsconsistofamiddlebandwithtwoouterbands.The
middlebandisaSMAthatisusuallysetat20periods.
3 BollingerBands Thebandsautomaticallywidenwhenvolatilityincreasesandnarrowwhen
volatilitydecreases.Thecloserthepricesmovetotheupperband,themore
overboughtthemarket,andthecloserthepricesmovetothelowerband,
themoreoversoldthemarket.
TheCommodityChannelIndexmeasuresthepositionofpriceinrelationto
itsmovingaverage.TheindicatorissimilarinconcepttoBollingerBandsbut
Commoditychannel ispresentedasanindicatorline.
4
index A buy signal is generated when CCI isbelow 100 and thencrosses above
the oversold line. A sell signal is generated when CCI isabove +100 and
thencrossesbelowtheoverboughtline.
Chaikin Money Flow measures the amount of Money Flow Volume over a
specific period. CMF is an oscillator that fluctuates between 1 and +1.
5 ChaikinMoneyFlow Rarely,ifever,willtheindicatorreachtheseextremes.
Amoveintopositiveterritoryindicatesbuyingpressure,whileamoveinto
negativeterritoryindicatessellingpressure.
Chande momentum oscillator is created by calculating the difference
betweenthe sum of allrecent gainsand the sum of all recent losses and
Chandemomentum
6 thendividingtheresultbythesumofallpricemovementovertheperiod.
oscillator
Thesecurityisdeemedtobeoverboughtwhenthemomentumoscillatoris
above+50andoversoldwhenitisbelow50.
To form a Consolidation Breakout, the security must be trending sideways
(consolidating). The security must break out of the consolidation pattern
Consolidation withhigherthanaveragevolumeconfirmingthebreakoutmove.
7
breakout Abreakaboveconsolidationresistanceonhigherthanaveragevolumeisa
"bullish breakout." A break below consolidation support on higher than
averagevolumeisa"bearishbreakout."
Buywhenthenumberofdowndaysexceedsthenumberofupdaysduring
8 Cycleprogression thelastfivedays.Sellwhenthenumberofupdaysexceedsthenumberof
downdaysduringthelastfivedays.
Directional movement index is calculated using the price, compares the
Directional
9 current price with the previous price range, and displays the result as an
movementindex
upward movement line (+DI), and a downward movement line (DI),
 between0and100.
Abuysignalisgeneratedwhenthe+DIlinecrossingovertheDIline,and
the+DIlinecrossingbelowtheDIlineisconsideredasellsignal.
Dynamicmomentumindexisverysimilartotherelativestrengthindex(RSI):
ThesecurityisdeemedtobeoverboughtwhentheDMIisabove+50and
oversoldwhenitisbelow50.
Dynamicmomentum
10 ThemaindifferencebetweenthetwoisthattheRSIusesafixednumberof
index
timeperiods, while the dynamic momentum index uses different time
periods as volatility changes, making this indicator more responsive to
changingprices.
ADarvas boxiscreatedwhenthepriceofa stockrisesabovetheprevious
52week high, but then falls back to a price not far from that high. If the
price falls too much, it can be a signal of a false breakout, otherwisethe
11 DarvasBox
lowerpriceisusedasthebottomoftheboxandthehighasthetop.
AbuysignalisgeneratedwhenpricebreaksabovetheDarvasBox.Asell
signalisgeneratedwhenpricebreaksbelowtheDarvasBox.
Easeofmovement isusedtoillustratetherelationshipbetweentherateof
an asset's price change and its volume. This indicator attempts to identify
theamountofvolumerequiredtomoveprices.
12 Easeofmovement Generally,amoveintopositiveterritoryindicatesbuyingpressure,whilea
moveintonegativeterritoryindicatessellingpressure.Ahighpositivevalue
appearswhenpricesmoveupwardonlowvolume.Strongnegativenumbers
indicatethatpriceismovingdownwardonlowvolume.
TheForecastOscillatorplotsthepercentagedifferencebetweentheforecast
price(generatedbyanxperiod linearregression line)andtheactualprice.
Theoscillatorisabovezerowhentheforecastpriceisgreaterthantheactual
13 Forecastoscillator price.Conversely,it'slessthanzeroifitsbelow.
Actual prices that are persistently below the forecast price suggest lower
prices ahead. Likewise, actual prices that are persistently above the
forecastpricesuggesthigherpricesahead.
This system consists of 3 moving averages with different time periods. The
averagescouldbecalledasfast,middleandlow.
Movingaverage
14 A buy signal is generated when the middle moving average crosses the
system
long moving average. A sell signal is generated when the fast moving
averagecrossesthemiddlemovingaverage.
The Money Flow Index is an oscillator that uses both price and volume to
measurebuyingandsellingpressure.TheMFIisrangeboundbetween0and
15 Moneyflowindex 100andisinterpretedinasimilarfashionastheRSI:Thesecurityisdeemed
tobeoverboughtwhentheMFIisabove+80andoversoldwhenitisbelow
20.
The MACD turns two trendfollowing indicators,moving averages, into a
momentum oscillator by subtracting the longer MA from the shorter MA.
Closing prices are used for these MA. A 9day EMA of the MACD Line is
plottedwiththeindicatortoactasasignallineandidentifyturns.
16 MACD AbullishcenterlinecrossoveroccurswhentheMACDLinemovesabovethe
zerolinetoturnpositive(theshorterEMAoftheunderlyingsecuritymoves
above the longer EMA). A bearish centerline crossover occurs when the
MACDmovesbelowthezerolinetoturnnegative(theshorterEMAmoves
belowthelongerEMA).
The Negative Volume Index focuses on days where the volume decreases
NegativeVolume
17 from the previous day. The premise being that the "smart money" takes
index
positionsondayswhenvolumedecreases.
 Positive Volume Index highlights days when volume is up on the previous
Positivevolume
18 day.PVIisbasedontheassumptionthattheuninformedcrowddominates
index
tradingonactivedays.
Projection Oscillator shows where the current price is relative to the
Projection Bands. A value of 100 indicates that prices are touching the top
band.Avalueof0indicatesthatpricesaretouchingthebottomband.
19 ProjectionOscillator
Abuysignalisgeneratedwhentheoscillatorfallsbelow20andthenrises
abovethatlevel.AsellsignalisgeneratedwhentheOscillatorrisesabove
80andthenfallsbelowthatlevel.
The Qstick indicator represents the moving average of the difference
betweentheopeningandclosingpricesofasecurity.
20 Qstick AbuysignalisgeneratedwhentheQstickvalueisincreasingandtheprice
is moving down. Conversely, a sell signal is generated when the Qstick
valueisfallingandthepriceisrising.
The Relative momentum index depicts price increases and decreases in
relationtoaclosingpriceofxdaysago.RMIlieintherangebetween0and
Relativemomentum 100.
21
index Whilstacrossingofthecenterlinemaybeinterpretedasawarningofan
impendingtrendchange,onlyvaluesover70areusuallyregardedasabuy
signalandthosebelow30asasellsignal.
Rate of change is a puremomentum oscillatorthat measures the percent
changeinpricefromoneperiodtothenext.
22 Rateofchange
Ingeneral,amoveintopositiveterritoryindicatesbuyingpressure,whilea
moveintonegativeterritoryindicatessellingpressure.
Relative strength index compares the magnitude of recent gains to recent
lossesinanattempttodetermineoverboughtandoversoldconditionsofan
Relativestrength asset.RSIoscillatesbetweenzeroand100.
23
index Traditionally, a buy signal is generated when the RSI falls below 30 and
then rises above that level. A sell signal is generated when the R rises
above70andthenfallsbelowthatlevel.
The Relative volatility index is identical to the RSI, except it measures the
standard deviation of high and low prices over a defined range of
Relativevolatility
24 periods.TheRVIcanrangefrom0to100.
index
The RVI can be interpreted as being bullish for the security if its value is
higher50or60andbearishifthevalueislowerthan50or40.
The Parabolic Stop and Reverse (SAR) indicator combines price and time
components togenerate buy and sell signals. Buy when the price closes
abovetheupperParabolicSAR.WhentheParabolicSARchangesfrombeing
above price to below price, investors should "stop" and buy to cover their
25 Stopandreverse existingshortselland"reverse"directionandbuytogolong.Asellsignalis
generatedwhenthepriceclosesbelowthelowerParabolicSAR.Atthetime
thattheParabolicSARchangesfrombeingbelowpricetobeingaboveprice,
the investors should "stop" and sell to exit their existing long trade and
"reverse"directionandselltogoshort.
TheSwingIndexseekstoisolatethe"real"priceofasecuritybycomparing
therelationshipsbetweenthecurrentprices(i.e.,open,high,low,andclose)
andthepreviousperiod'sprices.
26 Swingindex
WhentheSwingIndexcrossesoverzero,thenashorttermpricemovement
upward is expected. When the Swing Index crosses below zero, then a
shorttermpricemovementdownwardisexpected.
 The Volatility technical indicator is helpful in seeing potential market
reversals.ThisVolatilityindicatorbasedonthetruerangeofpriceisbased
onthepremise:
27 Volatilityanalysis Strongtrendsupwardaremarkedbydecreasesinvolatility.
Strongtrendsdownwardshowageneralincreaseinvolatility.
Reversalsintrendusuallyoccurwhenvolatilityincreases.

Theindicatorisbasedontheassumptionthataspricesrise,theclosingprice
tendstowardsthevaluesthatbelongtotheupperpartoftheareaofprice
movementsintheprecedingperiod.StochasticK%Dindicatorbelongstothe
28 Stochastic%K&D
oscillatorsanditsvalueislimitedbetween0and100.
Valuesof%Dlinethatareabove80indicatethatthesecurityisoverbought
andthevaluesbelow20thatitisoversold.
Meisels moves between +10 and 10 and is based on whether the market
closedhigherorlowerthantheprevioustradingdayoverthelast10days.
29 Meisels AbuysignalisgeneratedwhentheMeiselsfallsdowntoorcrossesbelow
6. A sell signal is generated when the Meisels reaches up to or crosses
above+6.
Williams %R shows the relationship of the close relative to the highlow
rangeoverasetperiodoftime.Thescalerangesfrom0to100.
30 Williams%R
Valuesthatarefrom0to20indicatethatthesecurityisoverboughtand
thevaluesfrom80to100isoversold.