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The Average True Range Indicator

9. March 2011

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Average True Range Introduction The Average True Range (ATR) is an indicator that was developed by J. Welles Wilder, Jr. who introduced it along with a few other indicators (Parabolic SAR, RSI and the Directional Movement Concept) in his book, “New Concepts in Technical Trading Systems” in 1978. The ATR was originally designed by Wilder [...]

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Parabolic Trading System

3. January 2011

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This particular technique has been around a long time and is still widely used by many analysts because of its adaptability to most markets. History The parabolic time/price system was first introduced by J. Welles Wilder Jr. in his book ‘New Concepts In Technical Trading Systems’. It is very often referred to as the SAR [...]

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PYRAMIDING WITH THE TREND

16. December 2010

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We’re short 1 contract from a few days after the top This is a good place to add a contract as this market is in a strong downtrend mode HOW TO TELL A STRONG TREND Bean Oil is in a strong downtrend mode. The Directional Movement indicator shows this clearly. The green line ( minus [...]

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Relative Strength Index

12. November 2010

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Relative Strength Index

Relative Strength Index History Relative Strength Index was developed by J.Welles Wilder Jr. and introduced in his book ‘New Concepts In Technical Trading Systems’. It is one of the most popular technical tools around. Relative strength Index (RSI) is measured on a scale from 0-100 with a reading above 70 being overbought and a reading [...]

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ADX (Average Directional Index)

7. November 2010

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History Average Directional Index (ADX) was developed by J. Welles Wilder Jr. and as its name implies attempts to measure the strength of the direction the security is moving in. ADX is measured in a scale from 0-100 with readings above 25 indicating that you are in a trend whilst readings below 25 indicate that [...]

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