|
|
|
 |
- TD Moving Average
Tom Demark describes his TD Moving Average study as "a means of identifying logical locations to either exit a trade or to place stop loss orders."
If the Moving Average of lows goes into effect, use the price level represented by the Moving Average to determine a place to exit the long position or to place a stop loss on a trade. If the Moving Average of highs goes into effect, use the price level represented by the Moving Average to spot a place to exit the short position or to place a stop loss on a trade.
The plot of the Moving Average remains in force for a period of 4 bars or until the required conditions are no longer valid. Note that once the lowest low in X bars condition is no longer true, the plot continues for a period of 4 bars. Conversely, if the most recent high has achieved a value higher than the high of all previous 12 bars, then a 3 period Moving Average of the highs is calculated and plotted until either the condition is no longer true or for a period of 4 bars, whichever is less.
See Simple Moving Average for additional information regarding interpretation..
|
|
- TD Range Expansion Index
Developed by Tom Demark, the TD Range Expansion Index is an a market-timing oscillator which identifies risk areas for buying and selling. The oscillator is arithmetically calculated and is designed to overcome problems with exponentially calculated oscillators, like MACD.
The oscillator typically produces values from -100 to +100 with 45 or higher indicating overbought conditions and -45 or lower indicating oversold conditions. Tom Demark notes that when REI rises above +45 and falls below +45, price weakness normally occurs. Conversely, when REI falls below -45 and rises above -45, price strength should become apparent.
|
|
- TD Range Projections
Developed by Tom Demark, the TD Range Projections allows you to project or anticipate the next bar's range, its expected high and low. The projections are dependent on the relationship of the open to close of the most recent period. If the close of the most recent bar is less than the open then the calculations are:
(Current High + 2 * Current Low + Current Close) = X
Projected High = X - Current Low
Projected Low = X - Current High
If the close of the most recent bar is greater than the open:
(2 * Current High + Current Low + Current Close) = X
Projected High = X - Current Low
Projected Low = X - Current High
If the close of the most recent bar is equal to the open then:
(Current High + Current Low +2 * Current Close) = X
Projected High = X - Current Low
Projected Low = X - Current High
These projections serve as benchmark expectations for the next day's range. If the open is within the projected range, it should remain within that range. If prices open outside the channel (above or below the projected high or low) then expect to see prices continue in the direction of the breakout.
|
|
- TD Rate of Change
Developed by Tom Demark, the TD Rate of Change indicator can be useful in the identification of potential market turns. It functions by comparing the current close to the close 12 bars ago as a means to determine the degree that the market is overbought or oversold.
See Rate of Change for additional information regarding interpretation.
|
|
- The Typical Price
The Typical Price function calculates the average of the high, low, and closing prices for the day via a simple, single-line plot. As with other price adjustment functions, the typical price provides a simplified view of the trading prices for the day. It can be used to smooth out some of the volatility of the closing price since it includes information for the entire trading day rather than specifically the end of the day.
The Typical Price can be used anywhere a closing price or other single price field would be used. For example, it could be compared to a moving average of its value to determine when a security is trending upward or downward. The Typical Price is a building block of the Money Flow Index.
The Typical Price indicator is calculated by adding the high, low, and closing prices together, and then dividing by three. The formula is:
| Typical Price = |
( |
High + Low + Close
3 |
) |
|
|
- Time Series Forecast
The Time Series Forecast function displays the statistical trend of a security's price over a specified time period based on linear regression analysis. Instead of a straight linear regression trendline, the Time Series Forecast plots the last point of multiple linear regression trendlines. This is why this indicator may sometimes referred to as the "moving linear regression" indicator or the "regression oscillator."
Because a linear regression line is a straight line as close as possible to all of the given values, a Time Series Forecast does not exhibit as much delay as a Moving Average when adjusting to price changes. This is because the indicator is continuously "fitting" itself to the data rather than simply averaging them. Note that this type of prediction is purely mathematical as it is ultimately the equivalent of drawing a line through the recent points and projecting that line forward.
The Time Series Forecast at the beginning of a data series will not be defined until there are enough values to fill the given period.
|
|
- Trade Volume Index
Similar to the On Balance Volume indicator, the Trade Volume Index (TVI) uses price and volume to show whether a security is being purchased or sold. The On Balance Volume (OBV) method works well with daily prices, but it doesn't work as well with intraday tick prices. The difference between the OBV and the TVI is that the TVI makes use of intraday tick data while the OBV uses of end of day data.
Tick prices, especially stock prices, often display trades at the bid or ask price for extended periods without changing. This creates a flat support or resistance level in the chart. During these periods of unchanging prices, the TVI continues to accumulate this volume on either the buy or sell side, depending on the last price change.
The TVI can identify whether a security is being accumulated or distributed. When the TVI is trending up, trades are taking place at the asking price as buyers accumulate the security. When the TVI is trending down, it shows that trades are taking place at the bid price as sellers distribute the security.
When prices are flat and the TVI is rising, look for prices to start to move to the upside. When prices are flatand the TVI is falling, look for prices to drop.
The Trade Volume Index is calculated by adding each trade's volume to a cumulative total when the price moves up by a specified amount, and subtracting the trade's volume when the price moves down by a specified amount. That specified amount is known as the "Minimum Tick Value."
To calculate the TVI you must first determine if prices are being accumulated or distributed:
Change = Price - Last Price
MTV = Minimum Tick Value
Accumulation when Change > MTV or Distribution when. Change < MTV
With direction determined, calculate the TVI:
Accumulation: TVI = TVI + Today's Volume
Distribution: TVI = TVI - Today's Volume
|
|
- Trend Quality Indicator (Q Indicator)
- The Trend Quality indicator is a trend detection and estimation tool based on two-step filtering.
Cumulative Price Changes are measured over term oriented semi-cycles and relates them to noise.
It shows congestion and trending periods which allows you to evaluate strength of trends.
Trend Quality accesses trend strength using a summing process to determine the Cumulative Price Change. Cumulative Price Change is reset at every trend reversal. Trend reversals are based on the crossing of two moving averages. Cumulative Price Change is averaged to produce the trend which is compared to the noise calculation. The result of this calculation is the quality indicator.
|
|
- TRIX
- TRIX is both moving averages and rate-of-change together to show a developing trend.
It is a percent rate-of-change of a triple-smoothed exponential moving average of a closing price.
It is a momentum indicator which moves up over and under a zero line. A movement above indicates a long opportunity, while a movement below indicates a short opportunity.
Formula:
1. Calculate an n-period exponential moving average of the close
2. Calculate an n-period exponential moving average of the first moving average, MA2
3. Calculate an n-period exponential moving average of the second moving average, MA3
4. Calculate the one-day (or one-minute, one-hour, etc) percent change of the third moving average (MA3), this result is the TRIX
|
|
- TRIX 2 Line
- TRIX 2 Line has two lines, one of which is the normal TRIX and the second is the signal line, generally 3 is used as the number of periods on a chart.
The points where these two lines cross are:
- Golden Cross (GC):
- TRIX breaks through signal line in an upward movement.
- Dead Cross (DC):
- TRIX breaks through signal line in a downward movement.
- Bounce (B):
- The line changes direction from down to up.
- Fall (F):
- The line changes direction from up to down.
General trading guidelines suggest that one should enter trading on a Golden Cross, exit on a Fall and rest from a fall to the next Golden Cross.
- Formula:
-
TRIX = (EMA 3 [TODAY] - EMA 3 [YESTERDAY]) / EMA 3
[YESTERDAY]
The solid line is the TRIX while the dotted line is the signal line.
|
|
- True Strength Index
The True Strength Index (TSI) is a momentum-based indicator, developed by William Blau. Designed to determine both trend and overbought/oversold conditions, the TSI is applicable to intraday time frames as well as long term trading.
The True Strength Index is a variation of the Relative Strength indicator. It uses a double smoothed exponential moving average of price momentum to minimize choppy price changes and highlight spot trend changes with little or no time lag. An increasing True Strength value indicates increasing momentum in the direction of the price movement.
Long Term - First Period used in the double exponential smoothing of the momentum.
Short Term - Second Period used in the double exponential smoothing of momentum.
|
|
|
real-time data |
delayed data |
end-of-day data
