Simple Moving Average (5, 10, 30, 90, 120, 180 day moving average): This shows the average share price re-calculated at each day for the number of days indicated.
Bollinger Bands: Plots a line usually set to one standard deviation either side of the average (you can set this figure yourself if you prefer). Plotting share price movements against the bands will help you visually identify the degree of volatility for the share you are analysing. When you see a share trading outside the Bollinger Bands you know that volatility is high.
Stochastic Oscillators Fast: Measurements of how close a shares closing price over a given time period is to its high or low prices for the same period. Chartists view these as leading indicators of possible future changes in share price. Very broadly speaking, closing prices that are consistently near the top of the share’s price range indicate buying pressure, while closing prices that are consistently near the bottom of the share’s price range indicate selling pressure.
Relative Strength Indicator (RSI): Compares an average of the closing prices where the share was up on the previous day with the average of the closing prices where a share was down on the previous day to develop a relative strength index.
The volatility of the index will increase the shorter the period used for calculation. The default number of periods for the RSI used by the National Bank Share and Bond Trading system for the measurement is: 10.
Moving Average Convergence Divergence (MACD): A trend-following momentum indicator that shows the relationship between two moving averages of prices.
The default periods for the MACD used by the National Bank Share and Bond Trading system are: 26, 12 and 9.
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