Category: Technical Indicator

  • ZigZag

    ZigZag per se is not an indicator, but it is a filter to show you where the trend has changed. In various spreadbetting strategies this is very useful in showing you where to find support and resistance areas or various classic patterns like a double bottom, triple bottom head and shoulders. As a spread bet…

  • MACD Convergence Divergence

    Convergence and Divergence are very strong signals in the various spread trading strategies. Now we will see this applied to the MACD. Lets recall: Bearish Divergence is when prices of the Stock, index, Forex pair  are making new highs but the technical indicator is telling you the opposite, it is showing weakness. Bullish Divergence is…

  • Spread Trading with the MACD Histogram

    The MACD Histogram is very good strength indicator / momentum indicator. The Histogram is constructed by the difference between the Fast MACD line (green Line) and the slower MACD Signal Line (blue Line). The moment the faster MACD Line moves faster that the the MACD Signal Line, this creates a bigger gap between the two…

  • Exponential Moving Averages

    Exponential Moving Averages The exponential moving average also known as the exponential smoothing. This indicator is the one preferred by technical analysts of the various different moving averages, as it is a balance between the simple moving average, that lags and the weighted moving average that is over sensitive. The simple moving average gives more…

  • Moving Averages, Simple and Exponential

    Moving Averages, Simple and Exponential This Indicator is often used in various spreadbet strategies. The moving average is a simple average price of the last n prices.  This is a lagging indicator, that is used to smooth data and filter out noise.  The moving average is also a base indicator for many other indicators you…

  • Spread Trading the MACD – Moving Average crossover

    The way spread betters trade or interpret the moving average crossover is they wait for the signal line to cross over the MACD line, simply explained, the 9 EMA (which is the Fast line) cross the 26 EMA(the slower of the two lines).  Below is an example of the FTSE 100 Index using the MACD Moving…

  • MACD-Moving Average Convergence-Divergence

    The MACD developed by George Appel, is a very popular indicator. Personally one of my favourites. Below I will discuss three main spreadbetting strategies with the MACD. How it is calculated in three steps: MACD: Calculate the spread between a 26-Day EMA (Exponential Moving Average) – 12 EMA. This differential represents price velocity MACD Signal…

  • SpreadTrading the Momentum Indicator

    Trading with the momentum Indicator:    Trend Following Some like trading with the strength in the Spreadbetting markets and take a long or short position once the Momentum indicator crosses the 50 line. The momentum indicator can be used in both scalping and swing trading. In scalping it would indicate in which direction to spread…

  • Momentum Indicator

    Momentum Indicator The Momentum indicator is a very simple and straight forward indicator. It tells you essentially what has been the recent change between the price of your current spread bet and the previous price of n days ago. What this relationship tells you is if your current price is stronger or weaker than the…

  • Trading the Commodity Channel Index (CCI)

    Trading the Commodity Channel Index (CCI) Reversal Strategy  Many use the CCI as an oscillator, as it comprises of 75% of the prices within -100 and +100:  Spread bet Sell signal: when the channel crosses above the +100 and then falls back below the +100 line. Spread bet Buy signal: when the channel crosses above…