Technical Indicators and Overlays

Technical Indicators are the often squiggly lines found above, below and on-top-of the price information on a technical chart. Indicators that use the same scale as prices are typically plotted on top of the price bars and are therefore referred to as "Overlays."

This section describes the various kinds of technical indicators and overlays that are available here at StockCharts.com.

Overlays

  • Bollinger Bands - A chart overlay that shows the upper and lower limits of 'normal' price movements based on the Standard Deviation of prices.
  • Ichimoku Clouds - A comprehensive indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals.
  • Keltner Channels - A chart overlay that shows upper and lower limits for price movements based on the Average True Range of prices.
  • Moving Averages - Simple and Exponential - Chart overlays that show the 'average' value over time. Both Simple Moving Averages (SMAs) and Exponential Moving Averages (EMAs) are explained.
  • Moving Average Envelopes - A chart overlay consisting of a channel formed from simple moving averages.
  • Parabolic SAR- A chart overlay that shows reversal points below prices in an uptrend and above prices in a downtrend.
  • Pivot Points- A chart overlay that shows reversal points below prices in an uptrend and above prices in a downtrend.
  • Price Channels - A chart overlay that shows a channel made from the highest high and lowest low for a given period of time.
  • Volume by Price - A chart overlay with a horizontal histogram showing the amount of activity at various price levels.
  • Volume-weighted Average Price (VWAP) - An intraday indicator based on total dollar value of all trades for the current day divided by the total trading volume for the current day.
  • ZigZag - A chart overlay that shows filtered price movements that are greater than a given percentage.

Indicators

Market Indicators

  • Arms Index (TRIN) - A breadth indicator derived from the AD Ratio and AD Volume Ratio.
  • Advance-Decline Line - A cumulative breadth indicator derived from Net Advances.
  • Advance-Decline Volume Line - A cumulative breadth indicator derived from Net Advancing Volume.
  • Bullish Percent Index - A breadth indicator derived from the percentage of stocks on PnF buy signals.
  • High-Low Index - A breadth indicator that shows new highs as a percentage of new highs plus new lows.
  • McClellan Oscillator - A MACD type oscillator of Net Advances.
  • McClellan Summation Index - A cumulative indicator based on the McClellan Oscillator.
  • Net New Highs - A breadth indicator showing the difference between new highs and new lows. Percentage, cumulative and smoothed versions can be used.
  • Percent Above Moving Average - A breadth oscillator that measure the percentage of stocks above a specific moving average.
  • Put/Call Ratio - A sentiment indicator found by dividing put volume by call volume.
  • Record High Percent - A 10-day moving average of the High-Low Index, which is a breadth indicator.
  • Volatility Indices - Indicators of implied volatility designed to measure fear and complacency for a range of indices and ETFs.
 


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