The ATR indicator measures only the range of prices set by the strongest players in the markets. It does this by comparing the distance from yesterdays close to today's high, and the distance from yesterdays close to today's low. This is combined with the distance from today's high and low. These figures are averaged to give the Average True Range of price movements between the end of yesterday's trade and the close of today's trading.
Count Back Line
- Long
- Short
- Long (Stop Loss)
- Short (Stop Loss)
The CBL is a short term resistance or support line calculated, in a falling trend, by counting back two higher highs, and then projecting a horizontal line to the right. A close above this resistance line suggests the intermediate down trend has changed. Closes above or below the line are used to fine tune entry and exit points.
Darvas Boxes
- Classic
- Modern
The Darvas box applies a filter to price movements to help determine which price moves are significant, and which are not. The filter is established by upper and lower limits of a Darvas box. The top of the Darvas box always starts with a new high. This high must be followed by 3 days that are lower. The bottom of the Darvas box can only be calculated after the top of the Darvas box has been confirmed. It is constructed in the opposite way to the top of the box. It uses as its starting point the lowest low that occurs after the top of the Darvas box is established. It is again a 4 day pattern, but is starts 1 day after the top of the box pattern. This means it takes a minimum of 5 days for a Darvas box to be identified for both top and bottom.
Guppy Multiple Moving Average
These are two groups of exponential moving averages. The short term group is a proxy for the behaviour of short term traders and speculators in the market. The long term group is a proxy for the long term investors in the market.
The relationship within each of these groups tells us when there is agreement on value
(when they are close together) and when there is disagreement on value (when they are
well spaced apart).
Invert Price Charts
This function inverts the price chart to eliminate the traders bullish or bearish bias.
Trend Volume Tools
Trend volume analysis identifies the repeated trading volume in trends. It is an extension of the Free Float methodology. Instead of using the theoretical free float of publicly available shares, this analysis calculates the volume of trading between trend points.
HULL TOOLS
Hull Moving Average
This indicator is highly responsive to changes in price activity whilst having superior smoothing over a simple moving average of the same period. Lag is reduced via a geometric solution and smoothing is achieved using nested averaging.
Hull Multiple Moving Average
This is a series of lines that track and filter price movements mush like the Guppy Multiple Moving Averages (GMMA). But whilst the GMMAs are optimized for use on daily price charts, the HMMAs are predominantly designed for use on weekly price charts.
Range Indicator
This indicator creates a series of price ranges that indicate when to buy, sell, hold or profit take. It determines when the price activity is pulling back, rallying up or the trend is reversing.
Rate of Annual Return
This indicator is used to calculate the annual rate of return of a share given its current rate of climb or fall.
INDICATORS & OSCILLATORS
Bollinger Bands
Bollinger Bands are plots of an x number of Standard Deviations above and below a simple moving average of n periods. Standard Deviation is a mathematical method used in Statistics which essentially gives a measure of the volatility in the data being analyzed.
Expontential Moving Average
Exponential Moving Average places greater weight on recent prices
and a lesser weight on past prices. This weighting, gives a smoother look to the line, and will follow the market action more closely as volatility rises and falls.
Simple Moving Average
Simple Moving Averages are a basic statistical device used to smooth out market action over a defined time period. The are calculated by totalling the closing
price over periods and then dividing this total amount by the number of periods n.
Range Envelope
Range Envelopes are used to indicate the trading range of a given market above and below an average price.
Absolute Price Oscillator
This oscillator is related to the Percentage Price Oscillator and loosely related to the MACD. It is simply a calculation of the difference between two Exponential Moving Averages.
Accumulation / Distribution
This oscillator is essentially a momentum indicator that takes Volume in as a factor. It is closely related to the On Balance Volume Oscillator, however with the momentum style calculations it could be considered to be more closely related with the underlying market.
Average Directional Index
The ADX is essentially an oscillator that determines if a market is trending. It is made up of two lines: the UP (green) line and the DOWN (red) line.
Average True Range
The ATR oscillator is a volatility indicator that works especially well with falling market. The caveat with this tool is however, that it is best when the market is trending strongly. Rising volatility in a choppy market may be an indicator to a breakout due to occur.
Chaikin Money Flow
This oscillator is based upon the assumption that when the market is strong, it will close in the upper half of the daily range with increasing volume and thus the CMF oscillator will be positive. When markets are weak, they will close in the lower half of their daily range with increasing volume and the CMF oscillator will be negative.
Chaikin Oscillator
Similar to the Chaikin Money Flow, this oscillator is based upon two exponential moving averages of the Accumulation/Distribution oscillator.
Detrended Price Oscillator
This oscillator shows the price action with the trend removed. It is best used for identifying cycles in the market and readily identifying overbought and oversold levels.
JIDC
This indicator is a basic trend/rally following indicator originially designed to help improve and locate entry points into new intermediate term trends.
Mass Index
Designed to identify possible market extremes by analysing the
variation in distance between daily high and low prices.
Momentum
The momentum is simply the rate of change over a specific time frame, in this case, the rate of change of the price over the period.
Money Flow Index
This index measures the value traded on up days and the value traded on down days. The resulting index can be used as an indicator to trend weakness as
well as an indicator to overbought and over sold levels.
MACD
The Moving Average Convergence Divergence is a trend following indicator with a built in 'trigger' line to indicate buy and sell opportunities.
Negative Volume Index
A cumulative indicator which only moves when volume is decreasing.
On Balance Volume
A cumulative momentum style indicator which ties together volume with price action.
Percentage Price Oscillator
This is a calculation of the difference between two Exponential Moving Averages.
Percentage Volume Oscillator
This is a calculation of the difference between two Exponential Moving Averages of the Volume.
Positive Volume Index
A cumulative indicator which only moves when volume is increasing.
Price Volume Trend
This index is a similar to On Balance Volume in that it is a cumulative momentum style indicator which ties together Volume with price action. However the key difference is that the amount of volume added to the total is dependent upon the relationship of today's close to yesterdays close.
Rate of Change %
This oscillator is similar to the Momentum indicator except it displays the change as a percentage, instead of points over n periods.
Relative Strength Index
Relative Strength Index is a price following line that attempts to display the strength of a movement without the associated trend to confuse the issue.
Stochastic
Displays the comparison between the markets closing price to the price range of %K periods.
Stochastic RSI
The Stochastic RSI indicator monitors the RSI (Relative Strength Index) values and their relationship over a period.
Volume Rate of Change
Measures the momentum of the Volume in the market.
Volume Rate of Change %
Same as above but reports as a percentage of change.
Williams %R
A momentum indicator that highlights overbought and oversold levels.
CHART STYLES
Bar Chart
The top of the verticle line indicates the highest price a security traded during the day and the bottom represents the lowest price. The closing price is displayed on the right side of the bar and the opening price is shown on the left.
Candlestick Chart
The highest and lowest price is represented in the same manner as a bar chart. The open and closing price is indicated by the colour of the bar. If the bar is red, then the security has closed lower than it opened. Green means the security closed higher than it opened.
Line Chart
Plots only the close price each day.
DRAWING TOOLS
Parabola
These trends are found most frequently in bull markets, or markets showing volatile rebounds. The trend is best described using an arc, or parabolic curve. It starts off slowly then accelerates very rapidly until the activity on the price chart is almost vertical.
Parallel Line
The parallel trend line tool can be used for trading channels. We prefer to use it for bullish flag patterns. These are high probability chart patterns.
Price Range
This technique measures previous price action and projects future targets. It is most effective when used in conjunction with chart patterns which have a high probability of developing in a consistent way. Generally the base of the chosen pattern is measured. This measurement is used to set a target based on the level of the subsequent
price breakout.
Saucer
The saucer or rounding bottom is a long term chart pattern. It is a very strong reversal signal. The shape of the bottom is best described with an arc rather than with a single trend line. The pattern develops over weeks or months. It is not a short term pattern.
Trend Lines
A line on the price chart of a security depicting the general direction the security is headed.
You can trial GTE Charting for 21-days by clicking here.
