Overview The MACD (“Moving Average Convergence/Divergence”) is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD was developed by Gerald Appel, publisher of Systems and Forecasts. The MACD is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential […]
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Overview Linear regression is a statistical tool used to predict future values from past values. In the case of security prices, it is commonly used to determine when prices are overextended. A Linear Regression trendline uses the least squares method to plot a straight line through prices so as to […]
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Overview This market sentiment indicator shows the relationship between large block trades, which are trades of more than 10,000 shares, and the total volume on the New York Stock Exchange. The comparison of large block trades to total volume shows how active the large institutional traders are. The higher the […]
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Overview Kagi charts are believed to have been created around the time that the Japanese stock market began trading in the 1870s. Kagi charts display a series of connecting vertical lines where the thickness and direction of the lines are dependent on the price action. The charts ignore the passage […]
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This tutorial written and reproduced with permission from Peter Ponzo Kiyosi Ito studied mathematics in the Faculty of Science of the Imperial University of Tokyo, graduating in 1938. In the 1940s he wrote several papers on Stochastic Processes and, in particular, developed what is now called Ito Calculus. I haven’t […]
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