Coppock Curve is a momentum indicator develop by Edwin “Sedge” Coppock, October 1965. Coppock used long term monthly data to identify buying or selling opportunities. Coppock Curve use 10 day period of WMA , 14 day period of Rate of change and 11 day period of Rate of change.
Coppock Curve = 10-period WMA of 14-period RoC + 11-period RoC
WMA = Weighted moving average
RoC = Rate-of-Change
It is very easy to interpret Coppock Curve because its use monthly data and there is not much signal. You can use this Coppock Curve to signal bear or bull market in the long term. Most signal happen when coppock curve cross above zero line. When Coppock curve cross above zero its signal bull market and when its cross below zero its signal bear market.
Commodity Channel Index (CCI) is an indicator develop by Donald Lambert. CCI is use to identify new trend and warn an extreme price. CCI is high when the price is far above the average price. CCI is low when the price is far below the average price. Just like RSI indicator, it can also be use to measure overbought and oversell.
How to use CCI to identify new trend? Most of the activity in CCI happen between -100 and +100. When the CCI go beyond +100, its indicate strength and signal emerging new uptrend in the future. When the CCI go below -100, its indicate weakness and foreshadow an extended downtrend in the near future. It is also can be use as bullish bearish divergences that signal a potential reversal pointHow to calculate CCI
CCI = (Typical Price - 20-period SMA of TP) / (.015 x Mean Deviation)
Typical Price (TP) = (High + Low + Close)/3
Constant = .015
Average True Range (ATR) is an indicator developed by J. Welles Wilder. It is design to measures volatility. ATR is calculated based on 14 days. Its formula is
Current ATR = [(Prior ATR x 13) + Current TR] / 14
- Multiply the previous 14-day ATR by 13.
- Add the most recent day's TR value.
- Divide the total by 14
Unlike MACD or RSI that give you buy or sell signal. ATR indicator is a unique way to measure the volatility of the stock. You can use ATR to measure the enthusiasm behind a move , reversal or breakout. You can use ATR show strong buying pressure or strong selling pressure and confirmr the interest or disinterest in a move of stock price.
Aroon is a technical indicator to detect if a stock is trending or not. Its also can be use to measure the strength of the trend. Aroon is designed to detect te beginning of a new trend. There is two type of Aroon, Aroon Up and Aroon Down.
Arron is calculate based on the following formula:
Aroon-Up = ((25 - Days Since 25-day High)/25) x 100
Aroon-Down = ((25 - Days Since 25-day Low)/25) x 100
It is easy to interprate Arron, it is a buying signal when Aroon up and above 50 and Aroon down is below 50. It is also selling signal when Aroon Up is below 50 and Aroon Below is above 50. A surge to 100 is sign that the new trend may emerging.
You can look for overbought (above 80) or oversold(below 20) levels to warn of unsustainable price extremes.
You can also check if a price move above 90 as and indicator as a truly overbought and a move below 10 is truly oversold. Moves above 90 and below 10 are very rare and you should take action to buy or sell.
How to Interprate AD line Indicator?
When the AD line show uptrend, its indicates that buying pressure is prevailing. When the AD line show downtrend, its show that selling pressure is prevailing.
AD line is not a standalone indicator, you should use other indicator to confirm the price action such as Relative Strength Indicator.
Just like stochastic oscillator indicator, Williams %R is a momentum indicator. It is develop by Larry Williams. Just like RSI indicator. You can use Williams %R momentum indicator to detect oversold or overbought. It is range from 0 to -100.
It is useful to scale oversold (-100) and Overbought (0). When the oscillator reach -100 or zero it is time to watch the price action.
Its can generate false signal and should be use with other indicator such as RSI.
Most people will go short when the graph is go beyond upper line (RSI above 70) and go long when the graph is go below border line (RSI below 30).RSI momentum generally favor the buying (uptrend) when the indicator is above 50 and the selling (downtrend) when below 50.
source: Investing .com
1. You should always focus on failure swing point as confirmation.
2. You should see how price has retreated versus the retreat of the rsi.
3. RSI's best friend is William % R indicator.
Example of MACD of GOOGL
Credit to investing.com
The best way to use MACD is to use it as a buy and sell signal. When the Blue Line Intercept with the Red line and moving uptrend it is a buy signal. When the Blue line intercept with the red line and moving down trend it is a sell signal.