Know Sure Thing also known as KST is a momentum indicator developed by renowned technical analyst Martin Pring. It calculates the weighted sum of 4 different smoothened rate of changes (ROC) on different periods. Highest weight is given to the… Continue Reading
Triangular Moving Average also known as TRIMA adds extra smoothening to the simple moving average and is ideal to identify trends during choppy market conditions. As you would know that simple moving average gives equal weightage to all price points… Continue Reading
Elder’s Force Index (EFI) is an oscillator that determines the ‘force’ at which the price moves in a particular direction. It was developed by famous phycologist and trader Dr. Alexander Elder and was introduced in his bestselling book Trading for… Continue Reading
Percentage Price Oscillator, also known as PPO is another momentum indicator that indicates the percentage price difference between two moving averages. Mathematically it is the difference of shorter moving average and longer moving average divided by longer moving average. PPO… Continue Reading
Acceleration Bands is a momentum indicator that factors in the stock’s volatility over a predefined period (usually 20 days or weeks). It’s typically plotted as an envelope over a chart with an upper band, lower band and middle band. The… Continue Reading
Amibroker vs Python – Which one should I use? This is one of the questions that has intrigued most of the traders venturing into algorithmic system development. While both of them are praiseworthy in terms of their flexibility, ease of… Continue Reading
Backtesting is a process of validating your trading strategy against historical data to see if it really works. It is one of the most important aspects of profitable trading system development. Through backtesting, a trader can simulate his strategy on… Continue Reading
Intraday trading is a mess if not done with a proper strategy. Most of the successful trading systems do not work in intraday timeframe due to numerous whipsaws and false signals. It’s imperative to minimize these whipsaws to build an… Continue Reading