Sunday, April 10, 2011

Chart Drawings

New advanced charts drawing were added to our charts. With this new feature our subscribers are able to draw such technical indicators as trend lines, support and resistance lines, price lines and time lines. Wide selection of Fibonacci drawings became available as well. Starting from Fibonacci timelines, and Fibonacci replacements, arks and fans and by finishing complex combination of several Fibonacci technical studies. Such standard tools as Andrew's pitchfork, quadrant lines, Gann, Fan, speed lines, tirone lines could be found on our chart. Regression line and regression channel with flexible adjustment of upper and lower bands became easy to drawn on the charts.

Complete list of technical drawings could be found here: Technical Analysis

Sunday, February 14, 2010

Pivot Point Charts

Pivot point indicator has been added to our charts. Pivot point lines are one of the most used lines in technical analysis to define possible support and resistance levels. As a rule these lines are based on the previous day high, low and close prices and are used for the next trading day.

The basic principle of technical analysis behind Pivot Point Lines is that the index, stock or any other analyzed security has tendency of changing price trend at the Pivot Point support and resistance level.

Chart 1: S&P 500 chart with Pivot Points

SP 500 chart - Technical Analysis - ABI, Absolute Breadth Index

Thursday, February 11, 2010

TRIN

Over the last month new quotes pages were added on our website. This time our team has focused on the advanced technical indicators based on the advance/decline quotes. In particular, TRIN quotes, McClellan Oscillator quotes and 3 month of historical McClellan Oscillator quotes became available to our subscribers.

The TRIN and McClellan Oscillator have been available on our charts for a long time, yet, from now on the quotes for these indicators are available on our web site as well.

 > TRIN Quotes - The TRIN is calculated as a ration between advance/decline issues and advance/decline volume ratios. On our quote page you may see Actual value of TRIN for major indexes and exchanges (NYSE, NASDAQ, AMEX, S&P 500, etc), 10-bar moving average applied to TRIN and sentiment associated with the current TRIN readings.

 > McClellan Oscillator Quotes - McClellan Oscillator is calculated as a difference between fast and slow moving averages applied to the Advance/Decline Percentage Oscillator.

SBV Histogram

Once again, MarketVolume® is one step ahead of its competition. Right now, our development team has put the finishing touches on our new Indexes charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline charts for major US indexes and exchanges. Now, we are raising the bar even further. From now on, you can monitor SBV Histogram.

SBV Histogram is an advanced version of the SBV Oscillator.

  • Blue Line - SBV Oscillator
  • Red Line - EMA (also called the Signal Line) applied to the SBV Oscillator
  • Histogram - Difference between the SBV Oscillator and its Signal Line

SBV Histogram applies MACD formula to SBV Oscillator and like the MACD, the SBV Histogram signals may be generated when the histogram crosses the center line (zero line).

SP500 - Technical Analysis - Chaikin Money Flow

15-second updates on our charts

Our 1-day and 2-hour charts were updated twice a minute. We do not provide streaming data simply because all our indicators including volume have to be calculated. Nobody (except us) provides volume for indexes and exchanges and this small delay is a price for complex calculation in real time.

Our developers have implemented the system that allows having 1-day and 2-hour chart periods to be updated every 15 seconds (4 times a minute) on the 1-day and 2-hour charts 1 bar = 1 minute. We believe that it is essential to have these charts updates as often as possible. 5-day, 10-day, 15-day and higher timeframe charts will be updated once a minute (the same as before).

Friday, January 15, 2010

Two indexes on a chart

New version of chart has been installed on our servers. New charts allow to switch the second index in the bottom of the index pane or in the line with the first (main) index. To align second index with the main index or to move it in the bottom of the pane, use F12. The same could be done from the right mouse click menu on the chart: select "View" then "Index 2 aligned: ON/OFF".

Wednesday, December 23, 2009

Second Index on our Chart

Another improvement was made on our charts. From now on you may plot second index on the main index pane and compare its trend to the main index trend.

This innovation on our charts lead to transferring volatility indexes (VIX, VXO and VXN) from the "Studies" pane (lower indicator pane) into the main index pane. Because of that, you will be able to apply various technical studies to the volatility indexes and analyze them as it is done with regular indexs.

Monday, December 14, 2009

New Technical Indicators

Chaikin Money Flow, Double Stochastics, Bollinger Bandwidth, Bollinger Percent, Bollinger Fibonacci Ratio

Once again, MarketVolume® is one step ahead of the competition. Right now, our development team put the finishing touches on our new Indexes charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline charts for major US indexes and exchanges. Now, we are raising the bar even further. From now on you may monitor Chaikin Money Flow  for U.S. indexes and Exchanges - at the current moment we are the only source of this indicator for indexes.

Chaikin Money Flow

Like Accumulation Distribution Line and Chaikin Oscillator, the Chaikin Money Flow Oscillator (CMF) is a good representation of the buying and selling pressure. In technical analysis, CMF is considered bullish when it is positive and bearish when it is negative.

SP500 - Technical Analysis - Chaikin Money Flow

Like the majority of other oscillators in technical analysis, Chaikin Money Flow signals can be generated on the divergence and crossovers.

  1. Since negative CMF indicates selling pressure (distribution) and positive CMF indicates buying pressure (accumulation), a buy/sell signal could be generated on the crossover of the CMF and center line (zero line).
  2. A divergence between price and CMF can also be used to generate signals. A situation in which the price reaches new lows and the Chaikin Money Flow Oscillator does not achieve a new low or begin to move up, could be considered to be Bullish divergence when the selling pressure begins to stop and buying pressure begins to grow. This indicates change in the market sentiment and a possible reversal upward. Controversy, periods when the price makes a new high and the Chaikin Money Flow Oscillator does not make a new high or has started to move down could indicate changes in bullish sentiment toward a bearish mood. Such a divergence can be used to consider selling.

Double Stochastics

From the chart below you can see that Stochastics and Double Stochastics lines move in the same pattern most of the time. However, the Double Stochastics moves more dynamically by spending less time in the middle area (between 20% and 80%).

S&P 500 - Technical Analysis - Stochastics Double

The Double Stochastic Oscillator can be analyzed in the same way as other Stochastic Oscillators. It oscillates between 0 and 100% and was developed to locate the recent close in relation to the high/low range. As in the case of the original Stochastic Oscillators, technical analysis states that, in rising markets (bullish markets), Double Stochastics moves close to 100% (above 80%) and in declining markets (bearish markets), the Double Stochastics tends to move closer to 0% (below 20%).

Bollinger Bandwidth

The Bollinger Bandwidth can be used to identify "the Squeeze" - when the Bandwidth is at its lowest low value within n-periods. Bollinger states that Squeeze could occur before a trend reversal, like "the calm before the storm". In this case, trading Buy/Sell signals can be generated on the price breakouts following the Squeeze.

DJI - Technical Analysis - Williams %R

Bollinger Percent

The Bollinger Percent calculates the current price location relative to the upper and lower Bands. As an example

  • A Bollinger Percent reading of 50% means that the current price is exactly at the middle band;
  • When the Bollinger Percent hits 100%, it means that the price is at the upper band level;
  •  When the Bollinger Percent drops to 0%, it tells us that the current price has dropped to the lower band level;
  •  Readings above 100% reveal that the price is moving above the upper band;
  •  Readings below 0% show that the current price has dropped below the lower band.

technical analysis, bollinger percent, SP 500 

Bollinger Fibonacci Ratio

The Fibonacci Bollinger Bands indicator is similar to the standard Bollinger Bands indicator, which was developed by John Bollinger. The Fibonacci Bands are based on the same principles as Bollinger Bands by building upper and lower bands on the stock's volatility, but using Wilders Smoothed ATR (Average True Range) instead of using the Standard Deviation.

Bollinge Fibonacci SP 500 Technical Analysis

More Studies Coming

Stay with us - And always get the latest in technical market analysis!

Monday, November 16, 2009

New Quotes

New Quotes have become available.

We tried to gather various technical indicators on a single page with elements of technical analysis which would help in defining current market sentiment. On the "Technical Analysis Quotes" pages we display quotes for several time-frames (as a rule 7-day, 14-day and 20-day periods are used) to cover short- and mid-term market sentiments.

>Price Analysis - Covers RSI (relative Strength Index), Stochastics, MACD and various Moving Average quotes with defined sentiment for each technical indicator.

>Volume Analysis - Here you may find quotes with sentiment for Volume Oscillator, PVO (Percentage Volume Oscillator), MVO (MarketVolume Oscillator), Positive and Negative Money Flow and MFI (Money Flow Index).

>Advance/Decline Analysis - On this quote page you will find elements of technical analysis that covers Advance decline volume and issues oscillators as well as TRIN analysis.

> Volatility Analysis - This quotes page reveals the volatility level based on the ATR (Average True Range) and on the Standard Deviation (also called "Historical Volatility")

> Advance/Decline Sentiment - This is not a new quotes page, yet we have extended the number of days in history which are shown on the sentiment graph. The Advance/Decline Sentiment is based on the A/D volume and issues data.

> MACD and MACD History - the quotes of most popular MACD settings.

> EMA andEMA History - the quotes of the most popular Exponential Moving Averages settings.

Monday, October 26, 2009

MarketVolume Quotes

Over the last week quotes pages were updated. In particularMACD summary quotes,MACD historical quotes were added andAdvance/Decline Sentiment quotes were extended.

MACD (Moving Average Convergence / Divergence) is one of the most popular studies in the technical analysis. Created by Gerald Appel in the 1960s this indicator is based on the difference between fast and slow exponential moving averages:

MACD = EMA1 – EMA2

Advance/decline Sentiment indicator is an indicator developed by MarketVolume Team and is based on the advance/decline issues and volume ratios.

Friday, July 31, 2009

Chaikin Oscillator, Bollinger Bands, Momentum and Williams %R

Once again, MarketVolume® is one step ahead of the competition. We are enhancing our services and adding new studies (indicators) to our charts. Right now, our development team put the finishing touches on our new Indexes charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline charts for major US indexes and exchanges. Now, we are raising the bar even further.From now on you may monitorChaikin Oscillator  for U.S. indexes and Exchanges.


Chaikin Oscillator

Chaikin Oscillator (named after its creator) is the next step in accumulation/distribution concept and allows to analyze buying and selling pressure in smaller not growing numbers.

Chaikin Oscillator calculations are based on the applying fast (smaller bar period setting) and slow (bigger bar period setting) exponential moving averages to the Accumulation/Distribution line and calculating the difference between them:

Chaikin Oscillator  = (fast exponential MA of Accumulation/Distribution) - (Slow exponential MA of Accumulation/Distribution)

Principles of Chaikin Oscillator calculation are similar to MACD. In the same way as the MACD-Histogram is used in technical analysis to show moving average crossovers, the Chaikin Oscillator is used to see changes in the Accumulation/Distribution Line. Furthermore, majority of the principles used in MACD to generate trading signals could be used in trading system based on Chaikin Oscillator.

Bollinger Bands

Bollinger Bands was developed by John Bollinger, Bollinger Bands to compare volatility and relative price levels over a selected period of time.

The Bollinger Bands were designed to identify periods of high and low volatility and to define periods when prices are at extreme, and possibly unsustainable, levels. Ability to identify volatility helps to adjust a trading system to generate signals in time and not when its too late or too early. At the same time changes in the volatility may alert to monitor stock (security) for a possible changes in the trend. In this case other technical indicators could become handy and help in determination of a potential reversal.

As a rule, stocks (securities) go through periods of high volatility and low volatility. Historically noticed that the sharp changes in price trend can occur when volatility is low. Bollinger Bands allow visually identify these periods: tight bands indicate low volatility and wide bands indicate high volatility. Volatility can be important for options players as well, simply, because options price depends on the volatility of underlying security and the lower volatility of stock is the cheaper options are on that stock.

In addition to volatility analysis Bollinger Bands may be used in junction with other indicators to predict significant moves. "Double Bottom Buy" and "Double Top Sell" are commonly used techniques in technical analysis to predict Buy and Sell points.

Momentum

Momentum indicator is a simplified version of ROC (Rate of Change) and measures the security's price change over a given time span. The same as ROC Momentum Indicator provides an indication of a market's velocity and to some degree, a measure of the extent to which a trend still holds true.

Momentum Indicator could be used to spot possible reversal points. Both Momentum Indicator and ROC could be used as trend following (lagging) indicators in similar to MACD way: buy when indicator start to move up after hitting a bottom and sell when indicator start to decline after hitting a top.

The Momentum indicator could be used as leading indicator as well. In many cases, Momentum indicator rally up sharply before a reversal down and declines sharply before a reversal up.

Williams %R

Williams %R was developed by Larry Williams and is a momentum technical indicator that is used in technical analysis much like the Stochastic Oscillator. The same as Stochastics, Williams %R serve to define overbought and oversold levels and reading in the range between 0 and minus 20 are considered as overbought while readings in the minus 80 and minus 100 range are considered oversold. The difference between Stochastics and Williams %R indicators is that the first one is always positive and moves between 0 and 100 and second one is always negative and moves in the range between minus 100 and 0.

The same as with Stochastics and other aspects of technical analysis that serve defining overbought/oversold levels, the overbought market (stock, security) does not necessarily imply time to sell and oversold market does not necessarily imply time to buy. A stock (security) could be heavily overbought and still move up while strongly oversold stock may continue to drop pushed by panic selling. It is recommended to wait when Williams %R moves above minus 80 after being below this level (after being oversold) to buy and wait when Williams %R drops below minus 20 after being above it (after being overbought) to sell. One of the conservative approaches could be to wait when Williams %R crosses minus 50 for confirmation of a trend reversal.

Once a security becomes overbought or oversold, traders should wait for a signal that a price reversal has occurred. One method might be to wait for Williams %R to cross above or below -50 for confirmation. Price reversal confirmation can also be accomplished by using other indicators or aspects of technical analysis in conjunction with Williams %R.

More Studies Coming

Stay with us - And always get the latest in technical market analysis!

Tuesday, June 30, 2009

Historical Quotes and Charts

We are enhancing our services and extending daily history of the indexes.

Some of the indexes could be scrolled back to 1929 on our charts.


A unique feature of our charts is that they encompass both real-time and historical data. This means that you can monitor what is happening in terms of index value and volume at this very moment (i.e., in real-time), and you can also go back in time to see how a specific event played out in the past - all on one chart. This feature can become a tool for personal research.

The "scrolling arrows"(found at the charts very bottom) can be used to access a particular date of interest.

Historical charts

We believe our historical data sets will help you in your technical analysis to analyze current trends and anticipate future trend movements.  See below some of the chart snapshots in history from one of our PLATINUM subscribers:

Chart 1: Dow Jones Industrial chart, crash in 1929 - 1934, 1 bar = 1 day

Stock Market Crash - DJI, 1930, daily chart


Chart 2:
Dow Jones Industrial chart, market crash in 1973 - 1974, 1 bar = 3 days

DJI 1974 stock market crash


Chart 3:
Dow Jones Industrial chart, market crash in 1987, 1 bar = 1 day

DJI 1987 stock market crash

Stay with us - And always get the latest in technical market analysis!

Friday, June 5, 2009

ADX, ADXR, DMI, ABI, Breadth Trust

Once again, MarketVolume® is one step ahead of the competition. Right now, our development team put the finishing touches on our new Indexes charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline charts for major US indexes and exchanges. Now, we are raising the bar even further. From now on you may monitorAbsolute Breadth Index and Breadth Trust  for U.S. indexes and Exchanges.


ADX (Absolute Directional Index)

The Average Directional Index (ADX) was developed by J. Welles Wilder to evaluate the strength of a trend and to define period of sideway trading.

The ADX is an oscillator that fluctuates between 0 and 100, however reading above 60 are relatively rare. In technical analysis ADX is compared to two levels:

  • ADX readings below 20 indicate weak trend;
  • ADX readings above 40 indicate strong trend;

The ADX in the Directional Movement system. The higher the ADX value - the stronger the trend. The technical analysis rules state that trend follow systems could be used when ADX is above 25 and when ADX drops below 20 then trend following systems are not recommended for use.

For more info read "ADX" description.

ADXR (Absolute Directional Rating)

ADXR stands for Average Directional Movement Index Rating ADXR is a component of the Directional Movement System developed by Welles Wilder. This system attempts to measure the strength of price movement in positive and negative directions, as well as the overall strength of the trend.

There are several ways of using ADXR:

  • The ADXR can be used in the same was as the ADX is used in the Directional Movement system. The technical analysis interpretation is the same as the ADX: the higher the value, the stronger the trend. It results in more conservative trading signals. The ADXR can be used to determine if price movement is sufficiently directional to be worth trading. Welles Wilder's rule is to use trend following trading systems when ADXR is above 25 and when ADXR drops below 20 then do not use a trend following system.
  • ADXR  is a lagging indicator that behaves like an Averaged ADX. Furthermore, the ADXR would generate signals after the ADX. In some cases ADXR is used as a signal line applied to ADX. A buy signal occurs when ADX crosses above ADXR, and a sell occurs when ADX crosses below ADXR.

For more info read "ADXR" description.

DMI (Directional Movement Index)

The Directional Movement Index (DX) was developed by J. Welles Wilder of to evaluate the strength of a trend and to define periods of sideway trading.The Directional Movement Index calculations are based on positive Directional Index (+DI) and negative Directional Index (-DI) - you may see the detailed calculation example inADX description.

In most cases Directional Movement Index is used on charts as ADX (Average Directional Movement Index) combined with positive and negative directional indexes. In this case in addition to the ability to use DX or ADX to define strength of a trend, positive and negative directional indexes could be used to generate signals. In its most basic form, buy and sell signals can be generated by +DI and -DI crossovers. In technical analysis it is considered that a buy signal occurs when +DI moves above -DI and a sell signal when -DI moves above the +DI. However, a traders should be aware that when an analyzed security is in a trading range (ADX or DX is below 20), this trading system may produce many false signals and whipsaws.

As with most technical indicators, +DI and -DI crosses should be used in conjunction with other aspects of technical analysis. Since Directional Index is based on the price, the volume based technical analysis could be recommended as a partner to this indicator in atrading system.

For more info read "DMI" description.

ABI (Absolute Breadth Index)

The Absolute Breadth Index (ABI) was developed by Norman G. Fosback and described in his book "Stock Market Logic". The ABI is market indicator that is used in technical analysis to determine volatility levels in the market without factoring in price direction. Referred to as a market momentum indicator, the absolute breadth index (ABI) is equal to the absolute value of the difference between the advancing issues and the declining issues. It shows how much activity and volatility and change is taking place on the NYSE or any other index and corresponding market sector.

Typically, large ABI numbers suggest volatility is increasing, which is likely to cause significant changes in stock prices in the coming weeks. If the ABI index readings have low value it point that no changes are taking place. Fosback found that a highly reliable variation of the ABI is to divide the weekly ABI by the total issues traded. If after 10 weeks moving average is calculated and readings are less than 15% they are called "bearish". Readings higher than 40% are called "bullish".

For more info read "Absolute Breadth Index" description.

Breadth Trust

The Breadth Thrust indicator was developed by Dr. Martin Zweig and is considered as a market momentum indicator. Traditionally the Breadth Thrust is calculated by dividing a 10-day exponential moving average of the number of advancing issues, by the number of advancing plus declining issues. Breadth thrust is an internal indicator that is somewhat more complicated. It is a ratio of moving averages that creates an excellent judge of market momentum.

In technical analysis Breadth Thrust can be read just like a stochastic or RSI, where overbought and oversold levels are at the extremes. Divergence with the underlying price chart points to weakening momentum. The number of days to set for the moving averages should be determined by the time-period being evaluated.

According to Dr. Zweig a "Breadth Thrust" occurs when, during a 10-day period, the Breadth Thrust indicator rises from below 40% to above 61.5%. A "Thrust" indicates that the stock market has rapidly changed from an oversold condition to one of strength, but has not yet become overbought. Dr. Zweig also points out that most bull markets begin with a Breadth Thrust.

For more info read "Breadth Trust" description.

Tuesday, May 12, 2009

S&P Financials

Use S&P Financials to trade XLF
S&P Financials and PHLX Indexes

From now on, our subscribers may apply volume and advance decline based technical indicators to S&P Financials, PHLX Housing PHLX Utilities indexes. At the current moment we are the only source of volume and advance decline studies for these indexes.


S&P Financials

S&P Financials index covers financial companies from the S&P 500 index basket. A wide array of diversified financial service firms are featured in this sector with business lines ranging from investment management to commercial and investment banking. Among the companies included in the Index are JPMorgan Chase, Wells Fargo, and BankAmerica Corp. XLF is the ETF that tracks this index and is one of the most traded ETFs at the current moment.

PHLX Housing

The PHLX Housing Sector Index is a modified market capitalization-weighted index. The PHLX Housing Sector Index (Symbol: HGX) is designed to track the performance of a set of companies whose primary lines of business are directly associated with the U.S. housing construction market. The Index began on January 2, 2002 at a base value of 250.00. 

PHLX Utilities

The PHLX Utility Sector Index (Symbol: UTY) composed of 20 geographically diverse public U.S. utility stocks. The PHLX Utility Sector Index is a market capitalization-weighted index. The Index began on May 1, 1987 at a base value of 200.00.

Monday, April 27, 2009

Nasdaq Indexes

Starting May 1, 2009, NASDAQ 100 charts and data will be limited to our GOLD and PLATINUM subscribers only.

On February 2, 2009 the NASDAQ Exchange increased the license fees for providing the NASDAQ indexes quotes and charts by 66%. In addition license fee became dependable on the number of subscribers who have access to NASDAQ real-time index data. Their rational for doing so is for adding the Philadelphia Stock Exchange, Nordic Stock Exchange, and Baltic Stock Exchange as well as other data services. Despite the fact that we do not provide information on such exchanges or indexes, we are nevertheless required to pay the increased rates.

Despite the additional expenses, we will not increase our subscription rates.

Unfortunately, in order for us to keep our current subscription rates unchanged in light of the new exchange fees, we will have to limit access NASDAQ 100 charts and data. Starting May 1, 2009, NASDAQ 100 charts and data will be limited to our GOLD and PLATINUM subscribers.

Wednesday, April 15, 2009

PHLX Indexes

From now on, our subscribers may apply volume and advance decline based technical indicators to PHLX Gold/Silver, PHLX Oil and PHLX Semiconductor indexes. At the current moment we are the only source of volume and advance decline studies for these indexes.

PHLX Semiconductor

The PHLX Semiconductor Sector Index (SOX) was introduced on the Philadelphia Stock Exchange on December 1, 1993. The Index had an initial value of 200. The SOX is a price-weighted index, which means that companies with higher stock prices have a greater influence on the Index. The SOX is composed of 19 companies involved in the design, distribution, manufacture, and sale of semiconductors. The Index was split two-for-one on July 24, 1995. Options on the Index were first traded on September 7, 1994.

PHLX Gold/Silver

The PHLX Gold/Silver Sector Index (Symbol: XAU) is designed to track the performance of a set of companies engaged in gold or silver mining sector. The PHLX Gold/Silver Sector Index is a market capitalization-weighted index. The Index began on January 19, 1979 at a base value of 100.00.

PHLX Oil

The PHLX Oil Service Sector Index (Symbol: OSX) is designed to track the performance of a set of companies engaged in the oil services sector. Index Calculation The PHLX Oil Service Sector Index is a price-weighted index. The Index began on December 31, 1996 at a base value of 75.00.

See complete list of indexes available with our charts

Monday, March 30, 2009

AD Line and TRIX

Once again, MarketVolume® is one step ahead of the competition. Right now, our development team put the finishing touches on our new Indexes charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline charts for major US indexes and exchanges. Now, we are raising the bar even further. From now on you may monitor Advance Decline Line  for U.S. indexes and Exchanges.


Advance Decline Line

Advance Decline Line is one of the well known breadth indicator in technical analysis.  Initially Advance Decline Line (AD Line) has been applied to NYSE (New York Stock Exchange), yet, we are the first who started to provide this technical indicators for other indexes and exchanges which allows to use AD Line to analyze smaller stock market sectors.

As with all other breadth indicators AD line could be applied to the basked of stocks only and is based on the Advance/Decline Issues, however we are the first who started to apply the Advance Decline Line formula to volume of advances and declines as well as we are first who started to monitor AD Line on intraday charts.

Below you may see the S&P 500 advance decline line and advance decline volume line.

Chart 1: S&P 500 index - Advance Decline Line.

S&P 500 index - Advance Decline Line.

TRIX and TRX 2 Line

TRIX displays the percent rate-of-change of a triple exponentially smoothed moving average of a security's closing price in order to eliminate price movements that are insignificant to the larger trends by reducing price volatility.

Below you may see S&P 500 60-day (1 bar = 1 hour) chart example of using TRIX indicator in hypothetical trading system that generates "Buy/Sell Signals" on crossovers of TRIX and zero line around which TRIX oscillates.

Chart 2: S&P 500 index - TRIX.

S&P 500 index - TRIX.

Another way of using TRIX is to use it with "Signal Line". On the chart below (see chart #2) you may see example of TRIX trading system that generates signals on TRIX and "Signal Line" crossovers.

Chart 3: S&P 500 index - TRIX 2 line (Signal Line).

S&P index - TRIX 2 line.

If you compare chart #1 to the chart #2, you may notice that with the same setting the second trading system is more sensitive and may earlier spot trend reversals. However at the same time the second trading system would generate more signals and as a result probability of fake signals is higher. Furthermore depending on the trading style one trader may prefer using TRIX while other may select TRIX with "Signal Line".

Standard Deviation

The Standard Deviation is used in technical analysis and trading systems to measures stock's volatility statistically by showing the difference of the prices from the average one. Normally, this indicator is used as a constituent of other indicators.

One of use of the Standard deviation is to confirm the down-trend and up-trend. As a rule, during the up-trend the market is less volatile while during the downtrend and market crashes we may witness high volatility which is caused by panic selling.

In trading systems Standard Deviation (as other volatility indicators) is used to define periods of the volatility and adjust used technical indicators setting to it. It is well know that in high volatile market the price trend changes faster and trading system should react on the signals faster, otherwise it could be too late to open/close a trade. At the same time in low volatile market a trader may set the trading system to generate signals with delay to avoid situation of premature opened/closed trades.

Chart 4: S&P 500 index - Standard Deviation.

S&P 500 index - Standard Deviation.

More Studies Coming

Tuesday, March 3, 2009

More Indexes

From now on, our subscribers may apply volume and advance decline based technical indicators to NASDAQ Bank, NASDAQ Other Financial, NASDAQ Industrial, NASDAQ Health Care, Nasdaq Insurance and NASDAQ Canada. At the current moment we are the only source of volume and advance decline studies for these indexes.

NASDAQ Bank Index

The NASDAQ Bank Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as Banks. They include banks providing a broad range of financial services, including retail banking, loans and money transmissions.

NASDAQ Other Financial Index

The NASDAQ Other Finance Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as Financial Services. They include real estate holding and development, real estate investment trusts, asset managers, consumer finance, specialty finance, investment services, and mortgage finance.

NASDAQ Industrial Index

The NASDAQ Industrial Index contains securities of NASDAQ-listed companies not classified in one of the NASDAQ sector indexes. These include firms that are involved in oil and gas productions, oil equipment, services & distribution, chemicals, forestry and paper, industrial metals, mining, construction and materials, aerospace and defense, general industrials, electronic and electrical equipment, industrial engineering, support services, automobiles and parts, beverages, food producers, household goods, leisure goods, personal goods, tobacco, food and drug retailers, general retailers, media, gambling, hotels, recreational services, restaurants and bars, travel & tourism, electricity, gas distribution, water, and multi-utilities.

NASDAQ Health Care Index

The NASDAQ Health Care Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as Health Care. They include health care providers, medical equipment, medical supplies, biotechnology, and pharmaceuticals.

NASDAQ Insurance Index

The NASDAQ Insurance Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as Insurance. They include full line insurance, insurance brokers, property and casualty insurance, reinsurance, and life insurance.

NASDAQ Canada Index

Nasdaq Canada is a wholly owned subsidiary of The Nasdaq Stock Market Inc. and was created to extend Nasdaq's North American trading platform within Canada. Nasdaq Canada exists to enhance and ensure Canadian investors' immediate trading access (including real time availability of all relevant data) of all Nasdaq securities and issuers with the ability to raise capital more efficiently. Nasdaq Canada is regulated jointly by the NASDR and the Qu├ębec Securities Commission (CVMQ).

Thursday, January 8, 2009

New Indexes

We are enhancing our services and adding new indices to our charts...

NASDAQ Indexes

Once again, MarketVolume® is one step ahead of the competition. Right now, we have added new indexes to our charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline, SBV, MVO charts for major US indexes and exchanges. Now, we are raising the bar even further.From now on, our subscribers may apply volume and advance decline based technical indicators to NASDAQ 100 Financial, NASDAQ Internet, NASDAQ Insurance and other NASDAQ Indexes and track sentiment changes in these market sectors. At the current moment we are the only source of volume and advance decline studies for these indexes.


NASDAQ 100 Financial Index

The NASDAQ Financial-100 Index includes 100 of the largest domestic and international financial securities listed on The NASDAQ Stock Market based on market capitalization. They include companies classified according to the Industry Classification Benchmark as Financials, which are included within the NASDAQ Bank, NASDAQ Insurance, and NASDAQ Other Finance Indexes.

NASDAQ Internet Index

The NASDAQ Internet Index is a modified market capitalization-weighted index designed to track the performance of the largest and most liquid U.S.-listed companies engaged in internet-related businesses and that are listed on one of the three major U.S. stock exchanges. The Index includes companies engaged in a broad range of internet-related services including, but not limited to internet software, internet access providers, internet search engines, web hosting, website design, and internet retail commerce.

NASDAQ Computer Index

The NASDAQ Computer Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as Technology excluding Telecommunications Equipment. Theyinclude computer services, internet, software, computer hardware, electronic office equipment, and semiconductors.

NASDAQ Q-50 Index

NASDAQ Q-50 Index is a market-capitalization weighted index designed to track the performance of securities that are next-eligible for inclusion into the NASDAQ-100 IndexSM. The Index is comprised of 50 securities ranked by market capitalization and reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. It does not contain securities of financial companies including banking and investment companies, as these are ineligible for NASDAQ-100 Index inclusion.

Complete list of NASDAQ Indexes available with our charts

Nasdaq 100 Index (^NDX)NASDAQ Composite (^IXIC)NASDAQ Biotechnology (^NBI)NASDAQ Computer (^IXK)NASDAQ Transportation (^IXTR)NASDAQ Capital Market Composite (^RCMP)NASDAQ Financial 100 (^OFIN)NASDAQ Internet (^QNET)NASDAQ Q-50 (^NXTQ)NASDAQ Technology (^NDXT)NASDAQ Telecommunication (^IXTC)NASDAQ Insurance (^INSR)NASDAQ Health Care (^IXHC)

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Thursday, November 27, 2008

New Indexes and New Indicators are coming soon.

Over the past month our developers were working on the new system of receiving data which would allow us to implement additional indexes as well as work on new technical indicators which we plan to implement within the next couple of weeks...

New Indexes.


At the current moment we working on adding following NASDAQ indexes to the list of indexes we track:
NASDAQ 100 Financial Index
NASDAQ Bank Index
NASDAQ Internet Index,
NASDAQ Computer Index,
NASDAQ Q-50 Index
NASDAQ Industrial Index,
NASDAQ Telecommunication Index,
NASDAQ Technology Index,
NASDAQ Capital Market Composite Index.

The new indexes would allow tracking other market sectors, apply volume and advance decline based technical indicators to them and could be used by traders who trade stocks from this market sectors.

New Indicators.


At the same time new system allows us to calculate advance decline ticks volume (ADT). Under advance tick index volume we assume summary volume of the positive ticks and the summary volume of the negative ticks of stocks from the index basket over the analyzed period. The same as Advance/Decline, the ADT reveals the traders sentiment and could be analyzed and used in the same way as other advance/decline based technical indicators. In opposite to the Advance/Decline indicators ADT is more sensitive on intraday reversals. The Advance/Decline data are calculated in relation to the previous day close. The ADT calculations are based on advanced and decline ticks of each stock and that explains better sensitivity of the ADT to the intraday trends.

To explain the nature of the ADT calculation we may compare it to the Advance/Decline and Advance Decline Momentum calculation:

Advanced Stock: A Stock is considered advanced if it traded above the previous day close. Even if the stock is moving during the trading session down, no matter how strong and how long this move down is, if this stock is still above previous day close it is still considered as advanced stock.

Advance Momentum Stock:
A Stock is considered advanced if it stock price moved up over a minute. No matter where the stock is in relation to the previous day close, if this stock moves up it is considered as advanced stock. As a result AD Momentum technical indicators are considered better for use on intraday charts while AD technical indicators could be used on higher time-frames.

Advance Ticks: A stock could be traded 100 times within a minute. Each trade is one tick and each trade could move price down and move price up. Even if the price of the stock moved up over a minute, this stock could have for instance 90 advanced ticks (90 trades with price up) and 10 declined ticks (10 trades when price was moving down) within this minute. In the next minute the same stock could still move up, yet have only 60 advanced and 40 declined ticks. As you may see advance/decline ticks are even more sensitive on smaller timeframes than AD momentum indicators. Since the number of ticks could vary from a minute to minute we calculate summary volume of the advance and decline ticks which provide better sentiment evaluation.

Thursday, October 2, 2008

Buying and Selling Volume Terminology

We are in the process of changing "Buying Volume" and "Selling Volume" terms in our market outlook and our tutorial. The previously accepted terminology confuses many of our subscribers and we are constantly receiving questions about it. To make it easier to learn, from now on we will use the simplified, commonly used terminology. We will continue using the SBV oscillator as "Selling Buying Volume Oscillator" because this name is correct and this name reveals the nature of the SBV Oscillator correctly, yet, we offer to implement some changes in a few terms:

Instead of We will use
"Buying Volume"Volume during the price down-move,
Volume during the index decline
Volume during MA decline (if referred to changes in price MA)
Red SBV
We may use commonly used terminology as well :
Negative money flow
Negative volume flow
Bearish volume
"Selling Volume"Volume during the price up-move,
Volume during the index advance
Volume during MA advance (if referred to price MA)
Green SBV
You may use commonly used terminology as well :
Positive money flow
Positive volume flow
Bullish Volume
"Buying Volume
Accumulation"
Volume accumulation during the price decline
Negative volume accumulation
Bearish volume accumulation
Negative SBV accumulation
Bearish SBV accumulation
Red SBV Area
"Selling Volume
Accumulation"
Volume accumulation during the price advance
Positive volume accumulation
Bullish volume accumulation
Positive SBV accumulation
Bullish SBV accumulation
Green SBV Area

The principles of the SBV analysis remain unchanged, only a few terms are changed for easier learning of analysis based on volume technical indicators. Below you may see a few points which are used in the core of SBV and volume technical analysis:

  • Negative volume accumulation (negative money flow accumulation) during the index decline leads the index into an oversold stage.
  • Positive volume accumulation (positive money flow accumulation) during the index advance leads the index into an overbought stage.
  • Declining SBV indicates Bearish sentiment.
  • Advancing SBV indicates Bullish sentiment.
  • When SBV changes its direction we have changes in the volume flow which indicates changes in the market sentiment which may lead toward the trend reversal.
    • If as a result of a price decline the SBV Oscillator dropped into negative territory and then started to advance we may state that we see the changes in the market sentiment (from Bearish into Bullish) and we may expect a possible reaction on oversold index as a trend reversal, recovery and up-trend.
    • If as a result of price advance the SBV Oscillator climbed into positive territory and then started to decline we may state that we see the changes in the market sentiment (from Bullish into Bearish) and we may expect a possible reaction on overbought index as a trend reversal, correction down and down-trend.
  • How strongly the index is overbought/oversold could be evaluated from how big the Bullish/Bearish SBV accumulation (how big green or red SBV areas are ) is.

Important: The overbought/oversold index could be evaluated in different time-frames and assigned to different time-frames. If you see Bullish/Bearish SBV or volume accumulation on an intraday chart, most likely the index reaction on this overbought/oversold stage will be on intraday level. If you see a big Bullish/Bearish SBV accumulation on a 1-year chart you may assume that the index is overbought/oversold on mid-term levels and the expected reversal could result in mid-term down- or up-trend.

Friday, September 19, 2008

Advance Decline

We are enhancing our services and adding new studies (indicators) to our charts...

Advance Decline PO

Once again, MarketVolume® is one step ahead of the competition. Right now, our development team put the finishing touches on our new Indexes charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline charts for major US indexes and exchanges. Now, we are raising the bar even further. From now on you may monitor A/D PO (Advance Decline Percentage Oscillator), and we are the only source of AD PO for U.S. indexes and Exchanges.
About Advance Decline Percentage Oscillator (OBV)

To avoid a situation when the A/D Ratio would run towards infinity our team has developed and implemented a new technical indicator Advance/Decline Percentage Oscillator (A/D PO) in September 2008. We are the first who introduced this indicator to the world and at the current moment we are the only company that provides this indicator and we consider ourselves this indicator developers.

The A/D PO has the same meaning and analyzes the ratio between the advances and declines. The difference between A/D PO chart and A/D Ratio chart (with similar chart setting) is barely noticeable. Yet, it allows to analyze the A/D Ratio results in the percentage scale from -100% to +100%.

Below you may see formulas used in A/D Percentage Oscillators.

Advance/Decline Issues Percentage Oscillator:
A/D Issues PO =
Advance Issues - Decline Issues


Advance Issues + Decline Issues
x 100
Advance/Decline Volume Percentage Oscillator:
A/D Volume PO =
Advance Volume - Decline Volume


Advance Volume + Decline Volume
x 100
Advance/Decline Momentum Volume Percentage Oscillator:
A/D Mom Volume PO =
Advance Mom Volume - Declined Mom Volume


Advance Mom Volume + Declined Mom Volume
x 100
New Highs/Lows Percentage Oscillator:
H/L PO =
New Highs - New Lows


New Highs + New Lows
x 100

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Wednesday, September 10, 2008

New charts coming soon

Our new chart version is coming soon. The following updates will be implemented:
  • SBV colors will be swapped
  • Added percentage oscillators for Advance/Decline Momentum Volume, Advance/Decline Volume, Advance Decline Issues and New highs/Lows

Tuesday, September 9, 2008

SBV Colors

We have received a few requests from our subscribers to swap the colors on the SBV oscillator to match colors of other technical studies: green for positive values and red for negative values. At the current moment, positive SBV is red in color and negative SBV is green in color, which is the opposite of all other oscillators (If you plot several oscillator on the chart you may see that SBV oscillators are colored opposite to all other oscillator).

On September 8-9, 2008 we had survey among our subscribers.

Results of SBV color swap survey:
  • 89% - in favor of color swap
  • 7% - in favor of leaving colors unchanged
  • 4% - does not matter
As the survey result suggest we will swap the SBV colors.

Sunday, August 31, 2008

New Indexes

We are enhancing our services and adding new indices to our charts...

NASDAQ Transportation (^IXTR)
NASDAQ Biotechnology (^NBI)
NASDAQ Industrial (^IXID)
NASDAQ Computer (^IXK)


Once again, MarketVolume® is one step ahead of the competition. Right now, we have added new indexes to our charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline, SBV, MVO charts for major US indexes and exchanges.

Now, we are raising the bar even further. From now on, our subscribers may apply volume and advance decline based technical indicators to Dow Jones Composite Averages, NASDAQ Transportation, NASDAQ Biotechnology, NASDAQ Industrial and NASDAQ Computer indexes and track sentiment changes in these market sectors. At the current moment we are the only source of these studies for these indexes.

In order to properly load new chart version, some web browsers may require you to refresh cache memory on your computer (use the Ctr-F5 button before and after login).

NASDAQ Transportation

The NASDAQ Transportation Index has been introduced on February 5, 1971 contains covers Transportation and Airlines (delivery services, marine transportation, railroads, transportation services, trucking, and airlines) NASDAQ-listed public companies.

NASDAQ Biotechnology

The NASDAQ Biotechnology Index covers Biotechnology or Pharmaceuticals public companies listed and traded on the NASDAQ Stock Exchange. This index was introduced on November 1, 1993 with a base of 200.00 and reflect the sentiment in the biotechnology market sector.

NASDAQ Industrial

The NASDAQ Industrial Index was lunched on February 5, 1971 with a base of 100.00. This index cover the NASDAQ-listed companies which are not included in other NASDAQ sector indexes: oil and gas productions, oil equipment, forestry and paper, services & distribution, construction and materials, aerospace and defence, general industrials, chemicals, industrial metals, industrial engineering, automobiles and parts, mining, electronic and electrical equipment, beverages, food producers, household goods, leisure goods, personal goods, general retailers, media, support services, hotels, recreational services, gambling, restaurants and bars, tobacco, food and drug retailers, travel & tourism, electricity, gas distribution, water, and multi-utilities.

NASDAQ Computer

The NASDAQ Computer Index covers public companies listed and traded on the NASDAQ Stock Exchange from the Technology industry with exception of the Telecommunications Equipment companies. This index includes computer service, internet, software, computer hardware, electronic office equipment, and semiconductors companies. The NASDAQ Computer Index was introduced on November 1, 1993 with a base of 200.00.

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Tuesday, August 26, 2008

New Indexes

At the current moment our team is working on adding new indexes to our index charts. By the end of this month we plan to make available on our charts following U.S. indexes:

NASDAQ Biotechnology (^NBI)
NASDAQ Computer (^IXK)
NASDAQ Transportation (^IXTR)

Thursday, August 21, 2008

OBV, PPO and ATR

We are enhancing our services and adding new studies (indicators) to our charts…

OBV, PPO and ATR

New charts have been installed on our server.

OBV, PPO and ATR has been added to the list of technical studies available with our charts.

The new chart version is 7.2.7
.


About On Balance Volume (OBV)

The OBV calculations are simple. The On Balance Volume is cumulative total of the negative and positive volume, where the negative volume is volume during the price decline and positive volume is volume during the price advance.

The On Balance Volume could be used as confirmation indicator as well as a tool to predict coming trend reversal.

If the OBV line moves along with the price MA (Moving Average) technical analysis tells that the OBV confirms the up-trend. At the same time the OBV decline during the price drop would confirm a down-trend. The divergence of the SBV movement and price trend could be used to anticipate possible changes in the market trend. The declining OBV during the price advance may indicate possible beginning of a new down-trend, while advancing OBV during the price decline could indicate a possibility of begging a new up-trend.

Chart 1: Nasdaq 100 index - On Balance Volume (OBV).

Nasdaq 100 New Highs Lows Ratio


About Average True Range (ATR)

The ATR indicator could be very useful in trading systems to define stock market periods of high volatility. From the chart above you may see that since August 2007 the Nasdaq 100 index has been 2-3 times more volatile. It means that from that month the Nasdaq 100 price changes its direction 2-3 time faster then before. As a result, technical indicators setting used in the period prior August 2007 may fail to generate signals after that month. The old indicators setting may simply open and close a trade when it is already too late.

As you may see the ATR helps identify high volatile period. In August 2007 by having ATR data, proficient in technical analysis trader would adjust the indicators to be more sensitive and faster react on the price changes.

Chart 2: Nasdaq 100 index - Average True Range (ATR).

Nasdaq 100 index - Average True Range (ATR).


About Percentage Price Oscillator (PPO)

The PPO is a percentage representation of MACD and all principles of technical analysis used with MACD could be applied to PPO and PPO would generate signals similar to the signals generated by MACD. As a result PPO is widely used with PPO-histogram which are analyzed in the same way as MACD histogram.

The same as with MACD the PVO could be used to generate signals from:

  • Divergence

  • Moving Average Crossover

  • Centerline Crossover

The advantage of the PPO over MACD is that because PPO is percentage based it allows comparing the PPO of various securities.

Chart 3: S&P 500 index - Percentage Price Oscillator (PPO) and MACD.

S&P 500 Percentage Price Oscillator (PPO)

More Studies Coming

Stay with us - And always get the latest in technical market analysis!

Tuesday, August 19, 2008

OBV, PPO, ATR

By the end of this week we are planning to introduce PPO (Percentage Price Oscillator), OBV (On Balance Volume) and ATR (Average True Range) indicators on our charts. These indicators are well known and we believe that expanding the number of technical studies available with our charts will help our subscribers to use our charts and proprietary indicators (SBV, MVO and Advance/Decline) in junction with other popular studies.

Tuesday, August 12, 2008

New Highs/Lows

We just added the new page on using New Highs and New Lows indicators in technical analysis. You may find this page at
http://www.marketvolume.com/technicalanalysis/new_highs_lows.asp

main points are "a scenario when during an up-trend the number of New Highs started to decline (New Highs/Lows oscillator and ratio starts to move down) may signal a possibility of coming down-turn. At the same time, a situation when during the decline the number of New lows starts to decline (New Highs/Lows oscillator and ratio starts to move up) may signal a possibility of coming recovery."

Friday, August 1, 2008

Technical Studies

At the current moment we are working on adding following technical studies to the list of studies on our charts:

Average True Range (ATR) - ATR was developed by J. Welles Wilder to measure a security's volatility. As such, the indicator does not provide an indication of price direction or duration, simply the degree of price movement or volatility. This indicator could be used to define the market stages when the security price is highly volatile from the periods when the price does not make sudden and fast movement. By having this knowledge a trader may adjust the personal trading indicators to react faster on market trend changes or to generate signals with some delay respectively.

On Balance Volume (OBV) - OBV indicator was created by Joe Granville to measure positive and negative volume flow. OBV is calculated by adding a period's volume when the close is up and by subtracting the period's volume when the close is down. A cumulative total of the volume additions and subtractions forms the OBV line.

Percentage Price Oscillator (PPO) - The Percentage Price Oscillator calculation are similar to the PVO (Percentage Volume Oscillator) with the difference that the formula is applied to the price moving averages instead of volume moving averages. The PPO formula subtracts the longer moving average from the shorter moving average and then divides the result by the longer moving average.