Moving Average Envelope (ENV) is a simple yet powerful technical indicator that can help us gain insights into market trends. It consists of a baseline and two envelope lines, which are determined by setting fixed percentages. When the price breaks through the envelope lines, it is a significant signal that may indicate important price fluctuations. ENV can assist us in identifying overbought and oversold opportunities, but it should be used in conjunction with other technical tools. This indicator can provide us with a strong perspective to help us navigate the stock market with stability.
EFI (Elder's Force Index) is a "power detector" in the stock market created by Master Alexander Elder. It combines price, volume, and market force to help determine the direction and strength of the market. The calculation formula for EFI is (current period closing price - previous period closing price) × volume, followed by applying the exponential moving average. Divergence in EFI can be used as a buying or selling signal, but it is recommended to use it in conjunction with other technical analysis tools.
The Ease of Movement (EOM) is a volume-based technical indicator used to observe the ease of market movement. EOM measures the market's operating state by calculating the moving distance and box ratio. A wide range with low volume indicates that the market is relatively easy to move, while a narrow range with high volume indicates that the market is relatively difficult to move. EOM can be used in conjunction with other indicators to help us better understand the dynamics of the market.
The document discusses the concept of the Double Exponential Moving Average (Double EMA) as a market indicator. It explains the calculation formula and highlights its advantages and considerations. The document also provides a Pine Script code example for implementing the Double EMA indicator on the TradingView platform.
The Donchian Channels is a technical indicator created by Richard Donchian to measure market volatility and identify trading signals. It consists of an upper band, lower band, and baseline, calculated based on the highest and lowest prices over a specified period. The indicator helps determine overbought or oversold conditions and confirm the strength of a trend. It is best used in conjunction with other technical analysis tools and can be implemented using TradingView Pine Script.
This document discusses the concept of divergence as a technical indicator in the financial market. Divergence is described as a key that guides traders to potential price reversals. The document explains the two types of divergence (positive and negative) and emphasizes the importance of combining divergence with other indicators and analysis tools. It also provides a code script for drawing divergence indicators using TradingView's Pine Script language.
This article introduces the technical analysis method of the Directional Movement Index (DMI). DMI consists of the Average Directional Index (ADX), Positive Directional Indicator (+DI), and Negative Directional Indicator (-DI), which are used to identify and measure the strength and direction of market trends. The article explains the calculation methods of these indicators and mentions their application in generating trading signals and setting stop losses. It also points out the limitations of DMI in the stock market and shares a Pine script code for calculating DMI.