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PARABOLIC SAR

What Is the Parabolic SAR Indicator?
The parabolic SAR indicator, developed by J. Wells Wilder, is used by traders to determine trend direction and potential reversals in price. The indicator uses a trailing stop and reverse method called "SAR," or stop and reverse, to identify suitable exit and entry points. Traders also refer to the indicator as to the parabolic stop and reverse, parabolic SAR, or PSAR.
The parabolic SAR indicator appears on a chart as a series of dots, either above or below an asset's price, depending on the direction the price is moving. A dot is placed below the price when it is trending upward, and above the price when it is trending downward

What Does the Parabolic SAR Indicator Tell You?
The parabolic indicator generates buy or sell signals when the position of the dots moves from one side of the asset's price to the other. For example, a buy signal occurs when the dots move from above the price to below the price, while a sell signal occurs when the dots move from below the price to above the price.
Traders also use the PSAR dots to set trailing stop loss orders. For example, if the price is rising, and the PSAR is also rising, the PSAR can be used as a possible exit if long. If the price drops below the PSAR, exit the long trade.

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MOVINFG AVERAGE (MA)

Moving Average Timeframes
The time frame used to calculate a moving average varies depending on the type of security being analyzed. For example, longer time frames, such as 50-day or 200-day moving averages, are commonly used for stocks, while shorter time frames, such as 10-day and 20-day moving averages, are used for commodities.
When identifying support and resistance levels, traders often use short-term and long-term moving averages to better identify potential entry and exit points. For example, a trader may look at a 10-day moving average on an intraday chart and then compare it to a 50-day moving average on a daily chart. This analysis helps determine whether a security is trending or in a range.
Additionally, traders may use multiple moving averages to identify crossovers and confirm trends. For example, when the 10-day crosses above the 20-day moving average, it can indicate that a new uptrend is emerging. Conversely, when the 10-day crosses below the 20-day moving average, it can signal a new downtrend.
Finally, traders may also look at moving averages for clues about volatility. A security with a wide range of trading prices (high volatility) often shows greater fluctuations in its moving averages than a security with a narrow range (low volatility). By tracking the different levels of volatility, traders can get an idea of when to enter or exit positions.

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Directional Movement Index (DMI)

What is Directional Movement Index (DMI)?
The Directional Movement Index is a technical indicator that is usually shown below the price chart and compares the recent price with the previous price range.
The Directional Movement Index shows the result as an upward or positive directional indicator (+DI or +DMI) and a downward or negative directional indicator (-DI or -DMI).
The Directional Movement Index is used for calculating the upward or downward movement strength and shows the trend strength line known as the Average Directional Index or ADX.

How to use Directional Movement Index in trading?1. Using +DI and -DI:
When the +DI line is higher than the -DI line, then the market is said to be trending upwards, and traders can take a long trade.

 If +DI is far above -DI, it indicates a strong upward trend. If -DI is far above +DI, the price trend is strongly moving downwards.
2. Using ADX:
When the ADX line is over 25 then the market is said to be trending and ranging if the ADX line is under 25.
Sometimes many traders also consider the market is trending when ADX is above 20 ADX and non-trending for below 20.
An ADX reading above 25 signifies a strong trend whereas below ADX 25 signifies that there is no strong trend, and the price is moving sideways.
To trade trends the ADX reading should be over 25 or 20 and the ADX reading should be lower than 20 for trading a ranging strategy.
3. Using +DI, -DI, and ADX:
Traders can also collectively use +DI, -DI, and ADX as well as individually for trading purposes.
Some traders may only analyse ADX for analysing the strength of the trend, whereas some traders may analyse only the direction movement lines of the DMI for analysing the direction of price movement.

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MONEY FLOW INDEX!!!!!! (MFI)

What is the Money Flow Index?
The Money Flow Index (MFI) is a technical analysis indicator that measures the flow of funds into and out of an asset over a given period. MFI is based on the relationship between the asset’s price movement and volume. The MFI scales between 0 and 100, with higher values signifying more buying pressure and lower values indicating more selling pressure.

How does the Money Flow Index work?
The MFI measures the amount of money flowing into and out of an asset over time. It uses price and volume data to determine whether an asset is bought or sold in large quantities, allowing traders to speculate on possible market trends. Combining these two data points gives the MFI a more comprehensive picture of market sentiment than any single data point.
When interpreting the MFI, traders look for divergences between price and volume action that can signal an imminent trend reversal. For instance, if the price is increasing while the MFI is decreasing, it could indicate that buying pressure is waning and that a bearish trend may be on the horizon. Alternatively, if the price declines while the MFI increases, it could indicate that selling pressure is weakening and that a bullish trend may be imminent.

How to Trade Money Flow Index
When using the Money Flow Index, traders should look for buy signals when the indicator crosses up through 20 and sell signals when crossing down through 80. A common approach is to buy on an MFI reading below 20 and sell on an MFI reading above 80. This range of values has been empirically found to represent extreme market conditions where prices may be ready for a reversal.
Traders should also consider the divergence between price action and the MFI to anticipate potential reversals. For example, if prices are rising and the MFI is falling, it could indicate that a bearish trend may be on the horizon. Alternatively, if the price declines while the MFI increases, it could indicate that selling pressure is weakening and that a bullish trend may be imminent.

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What Is MACD?
Moving average convergence/divergence (MACD) is a technical indicator to help investors identify price trends, measure trend momentum, and identify market entry points for buying or selling. Moving average convergence/divergence (MACD)

What MACD Signals
The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA. The calculation creates the MACD line. A nine-day EMA of the MACD line is called the signal line, plotted on top of the MACD line, which can function as a trigger for buy or sell signals.
Traders may buy the security when the MACD line crosses above the signal line and sell—or short—the security when the MACD line crosses below the signal line. MACD indicators can be interpreted in several ways, but the more common methods are crossovers, divergences, and rapid rises/falls.

Using MACD
MACD has a positive value (shown as the blue line in the lower chart) whenever the 12-period EMA (indicated by the red line on the price chart) is above the 26-period EMA (the blue line in the price chart) and a negative value when the 12-period EMA is below the 26-period EMA. The level of distance that MACD is above or below its baseline indicates that the distance between the two EMAs is growing.

MACD Divergence
When MACD forms highs or lows that exceed the corresponding highs and lows on the price, it is called a divergence. A bullish divergence appears when MACD forms two rising lows that correspond with two falling lows on the price. This is a valid bullish signal when the long-term trend is still positive.
Some traders will look for bullish divergences even when the long-term trend is negative because they can signal a change in the trend, although this technique is less reliable.

Limitations of MACD
A moving average divergence can signal a possible reversal, but no actual reversal produces a false positive. False positive divergences often occur when the price of an asset moves sideways in a consolidation, such as in a range or triangle pattern following a trend.

What is Bollinger Bands?

Bollinger Bands, a popular tool among investors and traders, helps gauge the volatility of stocks and other securities to determine if they are over- or undervalued. Developed in the 1980s by financial analyst John Bollinger, the bands appear on stock charts as three lines that move with the price. The center line is the stock price's 20-day simple moving average (SMA). The upper and lower bands are set at a certain number of standard deviations, usually two, above and below the middle line.

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What Is the Ichimoku Cloud?

The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future.