DYOR

Indicator glossary

Nineteen tools, one scoreboard. Here is what each indicator does and how DYOR puts it to work.

Trend

Moving Average (MA)

A simple moving average smooths price by averaging the last N closes. It shows the direction of the trend and acts as dynamic support or resistance.

EMA

Exponential Moving Average (EMA)

An EMA gives more weight to recent prices, so it reacts faster than a simple average.

Supertrend

Supertrend draws a trailing line based on the average true range. When price sits above the line the trend is up; a close through it flips the direction.

ADX

ADX & DMI

The Average Directional Index measures trend strength (not direction). +DI and −DI show whether buyers or sellers are in control.

SAR

Parabolic SAR

Parabolic Stop-and-Reverse plots dots that trail the price and accelerate as the trend extends.

Donchian Breakout

A Donchian channel tracks the highest high and lowest low of the last 20 days. A close beyond it is a breakout or breakdown.

Golden Cross & Death Cross

A golden cross happens when a faster moving average crosses above a slower one; a death cross is the reverse.

Momentum

MACD

Moving Average Convergence Divergence is the gap between the 12- and 26-period EMAs, compared with its own 9-period EMA (the signal line). The histogram shows the distance between the two.

RSI

Relative Strength Index (RSI)

RSI measures the speed of recent gains against recent losses on a 0–100 scale. Readings above 70 are overbought; below 30 are oversold.

STO

Stochastic Oscillator

The stochastic oscillator compares the close with the high–low range of the last 14 days. %K is the fast line and %D its 3-day average.

Williams %R

Williams %R shows where the close sits within the 14-day range on a scale from 0 to −100.

CCI

Commodity Channel Index (CCI)

CCI measures how far the typical price has moved from its 20-day average, adjusted for normal deviation.

Volatility

Bollinger Bands

Bollinger Bands place lines two standard deviations above and below the 20-day average. Narrow bands mean quiet markets; a close outside the bands marks an unusual move.

ATR

Average True Range (ATR)

ATR measures how much a stock typically moves in a day, including gaps.

Volume

OBV

On-Balance Volume (OBV)

OBV adds volume on up days and subtracts it on down days, revealing accumulation or distribution.

MFI

Money Flow Index (MFI)

MFI is a volume-weighted RSI that tracks money flowing in and out of a stock.

Price levels

Pivot Points

Classic pivot points use the previous day's high, low and close to project support (S1, S2) and resistance (R1, R2) levels.

S/D

Supply & Demand Zones

A demand zone is the base a rally launched from; a supply zone is the base a sell-off started from. Price often reacts when it returns to them, especially the first time.

S/R

Support & Resistance

Support is a price where buying has repeatedly stopped declines; resistance is where selling has repeatedly capped rallies. The more touches, the more people are watching the level.