Tag: Technical Indicators
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Parabolic SAR
The Parabolic Time/Price System or better known as the Parabolic SAR is an entry and exit system created by J.Wells Wilder. SAR = “Stop and Reverse” . It combines price and time components to generate your spread betting long or short signals. The Parabolic SAR adapts to the change. It is also an effective tool…
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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…
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Commodity Channel Index (CCI)
Technical Indicator: Commodity Channel Index (CCI) The Commodity Cannel Index (CCI) is a very popular indicator used mainly to show overbought and oversold areas. Developed by Donald Lambert mainly for commodities, it is not used on a wide variety of products. The CCI measures the current price relative to an average price, usually 20…
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Average Directional Index (ADX)2
Trading Signals: +DI Cross –DI The +DI compares the two consecutive highs and the –DI compares the two consecutive lows. Wells Wilder states: -when the ADX >20 and the + DI is above the –DI. Trade/spread bet Long: -when the ADX >20 and the -DI is above the +DI. Trade/spread bet short: example: Combining…