How to Calculate and Read a Simple Moving Average
Learn how to calculate a simple moving average and interpret its slope using hypothetical prices. See how outgoing prices, bar intervals, and adjusted-price settings affect the result.
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Technical Indicators
Original, source-based guides to technical indicators for investors.
20 articles · Original research guides with primary sources and worked examples
Topics · Technical Indicators
How Much More Does an Exponential Moving Average Respond to Recent Prices?
Understand exponential moving average weights and recursive calculations, and compare EMA with SMA. Check differences caused by initialization, historical data length, and intraday changes.
Read article →Golden Cross: What to Check Beyond the Moving Average Crossover
Learn how to interpret a short-term moving average crossing upward as trend confirmation. Examine average slopes, distance from price, and intraday versus confirmed signals.
Read article →Death Cross: The Start of a Decline or a Result of One Already Underway?
Use a bearish moving average crossover to review risk. Distinguish the lag after a sharp price drop, repeated crossovers in sideways markets, and differences in execution prices.
Read article →Why RSI 70 and 30 Are Not Automatic Sell and Buy Signals
Understand how RSI compares gains and losses and defines overbought and oversold zones. Examples explain why extreme readings can persist in strong trends and how averaging methods differ.
Read article →MACD Line, Signal Line, and Histogram: What Each Shows
Distinguish the three MACD components, zero-line crossovers, and signal-line crossovers. Learn why price can rise while the histogram shrinks and why raw MACD values are hard to compare across stocks.
Read article →What Does a Bollinger Band Squeeze Actually Tell You?
Learn how Bollinger BandWidth is calculated and how to interpret a squeeze. Understand why low volatility does not identify direction and how to compare historical ranges and display units.
Read article →How ATR Measures Price Ranges and Gaps
Calculate ATR true range using the high, low, and previous close. Understand direction versus volatility, comparisons relative to price, and the limits of using ATR for loss management.
Read article →How VWAP Differs from a Simple Average Price
Calculate volume-weighted average price using hypothetical trades. Learn about session resets, bar-price approximations, and why VWAP differs from investors’ actual average purchase prices.
Read article →How to Choose an Anchor for Anchored VWAP
Learn to read anchored VWAP from an earnings release or another predefined event. Calculation examples explore hindsight bias in anchor selection and automatic versus manual anchors.
Read article →Does Rising OBV Really Mean Net Buying Inflows?
Calculate how OBV accumulates volume according to closing-price direction. Explore how it differs from actual net buying, the impact of one high-volume day, and why changes matter more than absolute levels.
Read article →What Price Position Does the Stochastic Oscillator Measure?
Calculate stochastic %K and %D from the recent high-low range. Understand how the oscillator differs from RSI, how fast and slow versions are smoothed, and the limits of overbought readings.
Read article →Does a High ADX Mean a Strong Uptrend?
Read ADX trend strength separately from the directional information in +DI and −DI. Examples explain thresholds, high ADX during sharp declines, and falling ADX versus a price reversal.
Read article →Can Relative Strength Rise While Your Investment Loses Money?
Calculate relative strength by comparing a stock with a benchmark. Distinguish absolute returns, relative performance, and RSI, and align currency and dividend conventions.
Read article →Disparity Index of 110: What Does It Say About Price?
Calculate the disparity index as the ratio of price to its moving average. Distinguish 100-based and zero-based displays, and see how sideways prices alone can narrow the gap.
Read article →Twice the Usual Trading Volume: Which Average Is the Baseline?
Learn to calculate a volume moving average and compare it with current volume. Explore inclusion of the current day, intraday timing differences, and how one high-volume day raises the baseline.
Read article →When Can You Confirm Divergence Between Price and an Indicator?
Learn to read divergence by matching price highs and lows with indicator highs and lows. Understand pivot-confirmation delays, retrospective markers, and why divergence does not confirm a reversal.
Read article →Do Five Agreeing Technical Indicators Provide Five Pieces of Evidence?
Identify overlapping inputs in moving averages, MACD, and RSI. Distinguish composite buy ratings from independent evidence and assess information value by removing indicators one at a time.
Read article →Is Reducing Technical Indicator Lag Always Better?
Distinguish smoothing delays from waiting for a bar to close. Explore frequent changes in fast signals, misleading historical charts, and how to identify the actual decision time.
Read article →How to Validate Technical Indicator Periods and Thresholds
Understand overfitting when indicator periods and trading thresholds are tuned to past performance. Review chronological validation, stability across nearby settings, and cost and execution assumptions.
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