Technical Indicators

What Does It Mean?

Derived from Projection Bands, the Projection Oscillator (developed by M. Widner) measures the distance of the closing value within the current Projection Bands.

When the close is near or approaching 0, that translates to a close which is near the lower projection band. A value near or approaching 100 indicates the close is approaching the upper projection band.

Projection Oscillator Combined with Bar Chart

What Does It Mean?

The MACD (Moving Average Convergence/Divergence) is a trend following momentum indicator that shows the relationship between two moving averages of prices.

The MACD is the difference between two exponential moving average.

A short exponential moving average, called the "trigger" line is plotted on top of the MACD to show buy/sell opportunities.

Putting It To Use

There are three popular ways to use the MACD:

Crossovers: The basic MACD trading rule is to sell when the MACD falls below its signal line. Similarly, a buy signal occurs when the MACD rises above its signal line.

What Does It Mean?

Average True Range (ATR) Technical Indicator is an indicator that shows volatility of the market. It was introduced by Welles Wilder in his book "New concepts in technical trading systems".

This indicator has been used as a component of numerous other indicators and trading systems ever since.

Putting It To Use

Wilder has found that high ATR values often occur at market bottoms following a "panic" sell-off.