Stochastic 

A stochastic oscillator is a momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time. It is used to generate overbought and oversold trading signals, using a 0–100 bounded range of values. 

RSI 

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.  

MACD 

Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. 

The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line. 

Momentum Indicators 

Momentum indicators are technical analysis tools used to determine the strength or weakness of a stock's price. Momentum measures the rate of the rise or fall of stock prices. 

Momentum 

Momentum is the rate of acceleration of a security's price—that is, the speed at which the price is changing. 

Momentum Trading 

Momentum trading is a strategy that seeks to take advantage of momentum to enter a trend as it is picking up steam. 

Security 

The term "security" refers to an interchangeable asset, a negotiable financial instrument that holds some type of monetary value.


Next: Option Terminology
Prev: Other Symbols
Contents: PowerX Analyzer User Guide