Indicators/Oscillators – Help Center of bitcastleFX

%R	Williams’ Percent Range Technical Indicator (%R) is a dynamic technical indicator, which determines whether the market is overbought/oversold. Williams’ %R is very similar to the Stochastic Oscillator. The only difference is that %R has an upside down scale and the Stochastic Oscillator has internal smoothing.
AC	Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of the current driving force. This indicator will change direction before any changes in the driving force, which, it its turn, will change its direction before the price. If you realize that Acceleration/Deceleration is a signal of an earlier warning, it gives you evident advantages.
Accumulation/Distribution	Accumulation/Distribution Technical Indicator is determined by the changes in price and volume. The volume acts as a weighting coefficient at the change of price — the higher the coefficient (the volume) is the greater the contribution of the price change (for this period of time) will be in the value of the indicator.
ADX	Average Directional Movement Index Technical Indicator (ADX) helps to determine if there is a price trend.
Alligator	Alligator Technical Indicator is a combination of Balance Lines (Moving Averages) that use fractal geometry and nonlinear dynamics.
AMA	Adaptive Moving Average (AMA) Technical Indicator is used for constructing a moving average with low sensitivity to price series noises and is characterized by the minimal lag for trend detection.
ATR	Average True Range Technical Indicator (ATR) 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.
Awesome Oscillator	Bill Williams's Awesome Oscillator Technical Indicator (AO) is a 34-period simple moving average, plotted through the bars midpoints (H+L)/2, which is subtracted from the 5-period simple moving average, built across the bars midpoints (H+L)/2. It shows us quite clearly what’s happening to the market driving force at the present moment.
BB	Bollinger Bands (BB) - similar to Envelopes
BW MFI	Market Facilitation Index Technical Indicator (BW MFI) is the indicator which shows the change of price for one tick. Absolute values of the indicator do not mean anything as they are, only indicator changes have sense.
CCI	Commodity Channel Index Technical Indicator (CCI) measures the deviation of the commodity price from its average statistical price. High values of the index point out that the price is unusually high being compared with the average one, and low values show that the price is too low. In spite of its name, the Commodity Channel Index can be applied for any financial instrument, and not only for the wares.
CHO	The Chaikin Oscillator is a technical indicator used in Forex and other financial markets to assess the momentum of an asset's price. It is named after its creator, Marc Chaikin, and is primarily used to identify potential buy or sell signals. The Chaikin Oscillator is derived from the Accumulation/Distribution Line (AD Line) and the Exponential Moving Average (EMA).
DeM	Demarker Technical Indicator (DeM) is based on the comparison of the period maximum with the previous period maximum. If the current period (bar) maximum is higher, the respective difference between the two will be registered. If the current maximum is lower or equaling the maximum of the previous period, the naught value will be registered. The differences received for N periods are then summed. The received value is used as the numerator of the DeMarker and will be divided by the same value plus the sum of differences between the price minima of the previous and the current periods (bars). If the current price minimum is greater than that of the previous bar, the naught value will be registered.
DEMA	Double Exponential Moving Average Technical Indicator (DEMA) was developed by Patrick Mulloy and published in February 1994 in the "Technical Analysis of Stocks & Commodities" magazine. It is used for smoothing price series and is applied directly on a price chart of a financial security. Besides, it can be used for smoothing values of other indicators.
Detrended Price Oscillator	The Detrended Price Oscillator (DPO) is a technical indicator used to identify cyclic price patterns and potential overbought or oversold conditions in a Futures contract's price. The Detrended Price Oscillator calculates the difference between a selected period's simple moving average (SMA) and the corresponding price data shifted back by half of the selected period. The resulting values are plotted as a line on a separate oscillator chart. Here's how the Detrended Price Oscillator is calculated: 1. Select a period: Determine the number of periods to use for the Detrended Price Oscillator calculation. This can be customized based on the trader's preference and the specific Futures contract being analyzed. 2. Calculate the Detrended Price: Calculate the difference between the selected period's SMA and the price data shifted back by half of the selected period. This detrends the price data, removing the moving average component. 3. Plot the Detrended Price Oscillator: The calculated detrended price values are plotted as a line on a separate oscillator chart, typically centered around the zero line. The Detrended Price Oscillator helps traders identify short-term price cycles and potential turning points. By removing the trend component, it aims to highlight the underlying cyclic patterns that may not be as apparent on the price chart alone. Traders typically use the Detrended Price Oscillator to generate trading signals based on overbought and oversold conditions.
EMA	Exponential Moving Average - Exponentially smoothed moving average is calculated by adding of a certain share of the current closing price to the previous value of the moving average.
Envelopes	Envelopes Technical Indicator is formed with two Moving Averages, one of which is shifted upward and another one is shifted downward. The selection of optimum relative number of band margins shifting is determined with the market volatility: the higher the latter is, the stronger the shift is.
Force Index	Force Index Technical Indicator was developed by Alexander Elder. This index measures the Bulls Power at each increase, and the Bears Power at each decrease. It connects the basic elements of market information: price trend, its drops, and volumes of transactions. This index can be used as it is, but it is better to approximate it with the help of Moving Average. Approximation with the help a short moving average (the author proposes to use 2 intervals) contributes to finding the best opportunity to open and close positions. If the approximations is made with long moving average (period 13), the index shows the trends and their changes.
FRAMA	Fractal Adaptive Moving Average Technical Indicator (FRAMA) was developed by John Ehlers. This indicator is constructed based on the algorithm of the Exponential Moving Average, in which the smoothing factor is calculated based on the current fractal dimension of the price series. The advantage of FRAMA is the possibility to follow strong trend movements and to sufficiently slow down at the moments of price consolidation.
Gator Oscillator	Gator Oscillator is based on the Alligator and shows the degree of convergence/divergence of the Balance Lines (Smoothed Moving Average). The upper histogram is the absolute difference between the values of the blue and the red lines. The lower histogram is the absolute difference between the values of the red line and the green line, but with the minus sign, as the histogram chart is drawn top-down.
Ichimoku Kinko Hyo	Ichimoku Kinko Hyo Technical Indicator is predefined to characterize the market Trend, Support and Resistance Levels, and to generate signals of buying and selling. This indicator works best at weekly and daily charts.
MACD	Moving Average Convergence/Divergence (MACD) is a trend-following dynamic indicator. It indicates the correlation between two Moving Averages of a price.
Macroeconomic indicators	Macroeconomic indicators are parameters describing the state of the country they are calculated for. They characterize the level of economic development and may indicate either economic growth or a decline. By analyzing the macroeconomic indicators, it is possible to forecast future price movements.
MAE	Maximum Adverse Excursion - It is a risk metric used by traders and investors to assess the maximum loss experienced by a trade from its entry price to the lowest point before it is closed or reaches its stop-loss level. MAE helps traders evaluate the potential downside risk of a trade and is often used in combination with other risk management tools and metrics to make informed trading decisions.
MFI	Money Flow Index (MFI) is the technical indicator, which indicates the rate at which money is invested into a security and then withdrawn from it. Construction and interpretation of the indicator is similar to Relative Strength Index with the only difference that volume is important to MFI.
Momentum	The Momentum Technical Indicator measures the change of price of a financial instrument over a given time span.
MA	The Moving Average Technical Indicator shows the mean instrument price value for a certain period of time. When one calculates the moving average, one averages out the instrument price for this time period. As the price changes, its moving average either increases, or decreases.
OBV	On Balance Volume Technical Indicator (OBV) is a momentum technical indicator that relates volume to price change. The indicator, which Joseph Granville came up with, is pretty simple. If the close price of the current bar is higher than that of the previous bar, the volume of the current bar is added to the previous OBV. If the current bar close price is lower than of the previous one, the current volume is subtracted from the previous OBV.
OsMA	Moving Average of Oscillator (OsMA) is the difference between the oscillator and oscillator smoothing
Parabolic SAR	Parabolic SAR Technical Indicator was developed for analyzing the trending markets. The indicator is constructed on the price chart. This indicator is similar to Moving Average with the only difference that Parabolic SAR moves with higher acceleration and may change its position in terms of the price. The indicator is below the prices on the bull market (Up Trend), when the market is bearish (Down Trend), it is above the prices.
RSI	The Relative Strength Index Technical Indicator (RSI) is a price-following oscillator that ranges between 0 and 100. When Wilder introduced the Relative Strength Index, he recommended using a 14-period RSI. Since then, the 9-period and 25-period Relative Strength Index indicators have also gained popularity. A popular method of analyzing the RSI is to look for a divergence in which the security is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the Relative Strength Index then turns down and falls below its most recent trough, it is said to have completed a "failure swing". The failure swing is considered a confirmation of the impending reversal.
RVI	The main point of Relative Vigor Index Technical Indicator (RVI) is that on the bull market the closing price is, as a rule, higher, than the opening price. It is the other way round on the bear market. So the idea behind Relative Vigor Index is that the vigor, or energy, of the move is thus established by where the prices end up at the close.
SMA	Simple Moving Average" (SMA) refers to a widely used technical indicator. It is a calculation that helps traders and analysts smooth out price data over a specific period to identify trends and potential areas of support and resistance
Standard Deviation	Value of the market volatility measurement. This indicator describes the range of price fluctuations relative to Moving Average. So, if the value of this indicator is high, the market is volatile, and prices of bars are rather spread relative to the moving average. If the indicator value is low, the market can described as having a low volatility, and prices of bars are rather close to the moving average.
Stochastic Oscillator	The Stochastic Oscillator Technical Indicator compares where a security’s price closed relative to its price range over a given time period. The Stochastic Oscillator is displayed as two lines. The main line is called %K. The second line, called %D, is a Moving Average of %K. The %K line is usually displayed as a solid line and the %D line is usually displayed as a dotted line. There are several ways to interpret a Stochastic Oscillator.
TEMA	Triple Exponential Moving Average Technical Indicator (TEMA) was developed by Patrick Mulloy and published in the "Technical Analysis of Stocks & Commodities" magazine. The principle of its calculation is similar to DEMA (Double Exponential Moving Average). The name "Triple Exponential Moving Average" does not very correctly reflect its algorithm. This is a unique blend of the single, double and triple exponential moving average providing the smaller lag than each of them separately.
TRIX	Triple Exponential Average (TRIX) was developed by Jack Hutson as an oscillator of the overbought/oversold market conditions. It can also be used as the Momentum indicator. Triple smoothing is used for removing the cyclic components in price movements with the period less than that of TRIX.
VIDYA	Variable Index Dynamic Average Technical Indicator (VIDYA) was developed by Tushar Chande. It is an original method of calculating the Exponential Moving Average (EMA) with the dynamically changing period of averaging. Period of averaging depends on the market volatility; as the measure of volatility Chande Momentum Oscillator (CMO) was chosen. This oscillator measures the ratio between the sum of positive increments and sum of negative increments for a certain period (CMO period). CMO value is used as the ratio to the smoothing factor EMA. Thus VIDYA has to setup parameters: period of CMO and period of EMA.