The Parabolic SAR indicator was developed by J. Welles Wilder. The indicator shows dots below the current price bars if there is an up-trend, and vice versa. The formula for this indicator is complex, but is described in great detail in Wilder’s revolutionary book, New Concepts in Technical Trading Systems. How To Trade Using The [...]
The Moving Average Convergence-Divergence (MACD) is a simple and effective indicator based on (as the name implies) moving averages. What it does is to take the longer moving average (usually the 26-day Exponential Moving Average) and subtract it from the shorter moving average (usually the 12-day Exponential Moving Average). The reason for these moving averages [...]
Fibonacci retracement (pronounced fib-on-arch-ee) is a very popular technical analysis tool. In fact, it’s a key tool that technical traders use, which makes it even more powerful since it becomes a self-fulfilling prophecy (the more people who use the tool, the more effective the tool will become). Fibonacci retracement is based on the key numbers [...]
