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Posts Tagged ‘technical indicators’

Technical Analysis: Parabolic SAR

By Alex • Apr 11th, 2008 • Category: Stock Market Tutorials

Parabolic SAR is a time/price system first introduced by J.Welles Wilder in his acclaimed book “New Concepts in Technical Trading Systems” (1978). SAR stands for ’stop and reverse’ and the term ‘parabolic’ comes from the shape of the curve (resembling a parabola) created on the technical chart.
Here is what a chart looks like with Parabolic [...]



Technical Indicator: RSI (Relative Strength Index)

By Alex • Apr 10th, 2008 • Category: Stock Market Tutorials

RSI stands for Relative Strength Index. It is a lower (under the graph), technical indicator that is designed to tell you when a stock is “oversold” or “overbought.”
It is calculated using this formula:
RS = Average of x days’ up closes / Average of x days’ down closes
Here is what it looks like on a graph:

The [...]