Bollinger Bands (BOLL)
Technical Studies - 30 March 2006
Bollinger Bands are a kind of trading envelope. They are lines plotted at an interval around a moving average. Bollinger Bands consist of a moving average and two standard deviations charted as one line above and one line below the moving average. The line above is two standard deviations added ... read more

Commodity Channel Index (CCI)
Technical Studies - 30 March 2006
The Commodity Channel Index, CCI, is designed to detect beginning and ending market trends. The computational procedure standardizes market prices much like a standard score in statistics. The final index attempts to measure the deviation from normal or ... read more

Directional Movement Index (DMI)
Technical Studies - 30 March 2006
The DMI, Directional Movement Index, is a trend following system. The average directional movement index, or ADX, determines the market trend. When used with the up and down directional indicator values, +DI and -DI, the DMI is an exact trading system. ... read more

Displaced Moving Average (DMA)
Technical Studies - 30 March 2006
The displaced moving average, DMA, study allows you to shift or center the moving average on the price chart. You specify the length for one or two moving averages. You must then select the number of intervals to displace the moving average(s). That value may be positive or negative. A negative value ... read more

Envelope (ENV)
Technical Studies - 30 March 2006
The moving average envelope study is a derivative of the moving average study. It uses only one moving average, which you specify. You also determine the price band. The price band has two lines which are an equal percentage distance from the exponential, smoothed, or normal moving average. The ... read more

Exp. Moving Average (EMA)
Technical Studies - 30 March 2006
An exponential moving average is another type of moving average. In a simple moving average, the price data has an equal weight in the computation of the average. Also, the oldest price data is removed from the moving average as a new price is added to the computation. The exponential moving ... read more

High/Low Moving Average (HLMA)
Technical Studies - 30 March 2006
This study allows you to quickly and easily compute a simple moving average of the high and low for the interval. The length of the moving average may vary for the high and low. For example, some traders use this study as a measure of the market's ... read more

Highest High/Lowest Low (HILOW)
Technical Studies - 30 March 2006
The study plots the highest high and the lowest low for the number of periods you specify. Parameters: HighestHigh Period - the number of bars, or interval, used to determine the highest high. LowestLow Period - the number of bars, or interval, used to determine the lowest low. ... read more

Historic Volatility (HV)
Technical Studies - 30 March 2006
Although traders cannot predict the future, they must make intelligent guesses as to what the future holds. A standard approach used in option evaluation is to look at the past. What has historically been the volatility of a certain commodity? If for instance, the volatility of ... read more

Least Sq. Linear Regression (LIN)
Technical Studies - 30 March 2006
FutureSource uses the least squares technique to fit a straight line to the data. In simple terms, the software system computes the linear trend with 1 to time. Is the market trending lower or higher with respect to time? Once the calculations are completed, ... read more

Line Oscillator (LOSC)
Technical Studies - 30 March 2006
This study is a combination of two different studies. The first set of calculations compute an oscillator. The second part computes a moving average of the oscillator. You can specify a value for a moving average of the oscillator. FutureSource computes the values and displays two lines. ... read more

MACD (MACD)
Technical Studies - 30 March 2006
The MACD is similar in concept to the line oscillator. In fact, the buy/sell indicators are identical. The difference is the MACD uses exponential moving averages versus the simple moving averages used in the line oscillator study. Gerald Appel is credited with ... read more

Momentum (MOM)
Technical Studies - 30 March 2006
Momentum monitors the change in prices. It tells you whether prices are increasing at an increasing rate or decreasing at a decreasing rate. Is the market trend about to change? Is the market overbought or oversold? Momentum may help you find those market conditions. ... read more

Moving Average (MA)
Technical Studies - 30 March 2006
Moving averages are one of the most commonly used technical tools. They follow the trend, smooth the normal fluctuations of the data, and clearly signal long and short positions to the investor. This study displays moving averages as the normal crossover trading system. ... read more

Moving Standard Deviation (MSTD)
Technical Studies - 30 March 2006
The moving standard deviation is a measure of market volatility. It makes no predictions of market direction, but it may serve as a confirming indicator. You specify the number of periods to use, and the study computes the standard deviation of prices from the ... read more

Oscillator (OSC)
Technical Studies - 30 March 2006
Technical analysts use a variety of oscillators. An oscillator is the simple difference between two moving averages. FutureSource calculates and plots the difference between two moving averages. Those values oscillate about the zero line and are plotted as a histogram. ... read more

Parabolic (PARAB)
Technical Studies - 30 March 2006
J. Welles Wilder's parabolic time/price is a simple study to use. The study continuously computes "top and reverse" price points. Whenever the market penetrates this "stop and reverse" point, you liquidate your current position and take the opposite ... read more

Percent R (PR)
Technical Studies - 30 March 2006
Noted author and commodity trader, Larry Williams, developed a trading formula called the %R. In his original work, the method examined ten trading days to determine the trading range. Once the ten day trading range was determined, he calculated where today's closing price fell within that range. ... read more

Rate of Change (ROC)
Technical Studies - 30 March 2006
This study monitors market momentum. It calculates the market's rate of change relative to previous trading intervals. You specify the value. At the peaks, the indicator suggests a market that is overbought. Valleys or troughs indicate an oversold market condition. Some market technicians use a very ... read more

Relative Strength Index (RSI)
Technical Studies - 30 March 2006
The RSI is another J. Welles Wilder, Jr. trading tool. The main purpose of the study is to measure the market's strength and weakness. A high RSI, above 70, suggests an overbought or weakening bull market. Conversely, a low RSI, below 30, implies an oversold market or dying bear market. ... read more

Slow Stochastic (SSTO)
Technical Studies - 30 March 2006
Dr. George C. Lane is the author of the stochastic indicator. His basic premise is as follows:During periods of price decreases, daily closes tend to accumulate near the extreme lows of the day. Periods of price increases tend to show closes accumulating near the extreme highs of the day. The ... read more

Stochastic (STO)
Technical Studies - 30 March 2006
If you have read the discussion on the slow stochastic, you might find the following rather repetitious. The discussion on trading rules is identical to the slow stochastic, however you may want to review the computations, since they are the basis for the slow stochastic values. ... read more

Var. Moving Average (VMA)
Technical Studies - 30 March 2006
VMA allows you to get very creative with the moving averages. You may specify the length, type, (exponential, normal, or smoothed) and price for each moving average. You may specify 1, 2, or 3 distinct moving averages. These moving averages may overlay the bar chart or display individually. ... read more

Volume and Open Interest (VOI)
Technical Studies - 30 March 2006
Volume and Open Interest can be a barometer of future activity and direction. Volume measures the number of contracts that exchanged hands during the trading session. It measures market activity. Open Interest is the total number of outstanding contracts. It gauges market participation. ... read more

Weighted Close (WTCL)
Technical Studies - 30 March 2006
The weighted close study is another way of viewing the price data. It places a greater emphasis on the closing price rather than the high or low. This process creates a single line chart. Unfortunately, the study does not have clear cut trading signals. You must use ... read more

Williams Accum. Dist. Index (AD)
Technical Studies - 30 March 2006
The Williams' Accumulation/Distribution Index (AD) study attempts to measure market pressures. It specifically looks for market formula. The study serves to measure market strength and sentiment. You can use the normal technical tools on the study, i.e., trendlines, breakouts, support, and resistance. ... read more