Indicators PPT PDF

INDICATORS Ing. Radovan Dráb, PhD. Ing. Viliam Vajda, PhD. MFI – MONEY FLOW INDEX  MFI – Money Flow Index Created by Gene Quong and Avrum Soudack Momentum indicator (but also volume indicator) – oscillator Alternative of RSI (together with „Volume“ of closed trades)...

INDICATORS Ing. Radovan Dráb, PhD. Ing. Viliam Vajda, PhD. MFI – MONEY FLOW INDEX  MFI – Money Flow Index Created by Gene Quong and Avrum Soudack Momentum indicator (but also volume indicator) – oscillator Alternative of RSI (together with „Volume“ of closed trades) MFI represents demand of stock with relation of its price and volume Common/default setup - 14 period Calculation Typical price: (H+L+C)/3 Money Flow: Typical price* volume  MFI – Money Flow Index Positive money – the price is higher than previous The sum of all positive money creates positive money flow Negative money – the price is lower than previous The sum of all negative money creates negative money flow Money Ratio= positive money flow / negative money flow 100 MFI 100  1  MR  MFI – Money Flow Index USAGE: Levels Value of indicator Money Flow Index above level 80 signals potential top – overbought market Value of indicator Money Flow Index below level 20 signals potential bottom – oversold Divergences Price vs. Indicator Positive Negative W%R - WILLIAMS PERCENTAGE RANGE  W%R - Williams Percentage Range Creator of this indicator - trader – Larry Williams Momentum Indicator Usage for more accurate of entering signals Default setup 14 and 28 period Calculation  Highest HIGH in N periods – Current CLOSE  W % R      100   Highest HIGH in N periods – Lowest LOW in N periods  Values W%R – range from zero (0) to minus one hundred (-100)  W%R - Williams Percentage Range Value below (– 80) means that stock is oversold (and the price of the stock will probably increase) Value above (– 20) means that stock is ovebought (and the price of the stock will probably decrease) Alternative usage of (-50) level line. gauge the six-month trend for a security. 125-day %R covers around 6 months TNX 4 ATT