Technical Glossary

Technical Indicators – Trend Indicators

Averages and trailing tools that try to show the direction and stay out of the noise. 18 topics.

Simple Moving Average (SMA)

The average of the last N closes, each close weighted equally.

Exponential Moving Average (EMA)

A moving average that weights recent closes more than old ones.

Weighted Moving Average (WMA)

A moving average that gives linearly more weight to more recent closes, and zero weight beyond the window.

Double Exponential Moving Average (DEMA)

An average designed to cut lag by combining an EMA with an EMA of that EMA.

Triple Exponential Moving Average (TEMA)

A further lag-reduced average that uses the EMA three times.

Hull Moving Average (HMA)

A fast, smooth average that uses weighted averages and the square root of the period.

Volume Weighted Moving Average (VWMA)

A moving average in which closes are weighted by the volume of their bar.

Moving Average Ribbon

Several moving averages of different lengths plotted together.

Moving Average Crossover

A signal when a shorter moving average crosses a longer one.

MACD

The difference between two EMAs, plus a signal line that is an EMA of that difference.

Parabolic SAR

A trailing stop that accelerates toward price as a trend extends.

Supertrend

A trailing line built from ATR around the midpoint of each bar, which flips when price closes through it.

Ichimoku Cloud

A Japanese trend system of five lines: two midpoints, a cloud shifted forward, and the close shifted back.

Average Directional Index (ADX)

A measure of trend strength, without a bullish or bearish sign, built from directional movement.

Aroon Indicator

A pair of lines that measure how recently the window made a new high or a new low.

Donchian Channels

A band of the highest high and the lowest low over the last N bars.

Keltner Channels

An EMA band widened by a multiple of ATR.

Linear Regression Indicator

The endpoint of a least-squares line fit through the last N closes.