An indicator study in 40 minutes - Strength

This series will be studying the main indicators for each of the four separate components influencing Price Action: Momentum, Volatility, Strength and Trend*. (*Wilson, L., The Business of Share Trading - 1st ed., 2003, Wrightbooks, P117).

Each presentation is designed to analyse the formulas and the mechanics of the indicator and may not study its strategy application.

Indicators covered to-date :- 1) Momentum: ROC, MACD, RSI, Stochastic Oscillator; 2) Volatility: ATR, Bollinger Bands

These presentations will run online every Wednesday through May, June & July 2020 and will be available to ATAA financial members and registered visitors.

Topic: Strength Tim Young, ()

Leon Wilson's third component of price action is STRENGTH and is made up of the external and internal forms. The External component is the Relative Strength Comparative (RSC) to measure the external stock comparison, and b) Internal, or underlying, component can be explained by the On-balance Volume (OBV) and the Negative Volume Index (NVI) indicators.

In his book ‘The Business of Share Trading’ Leon made the following comments about these indicators: the RSC is often an under-utilised tool by traders; the OBV is the ‘focus knob’ for volume because it indicates buying & selling pressure; and the NVI attempts to follow the smart money.

We will look at how these indicators are calculated, with excel examples, plus some applications.

Next week’s topic will be the Price Action component of TREND.

Next Meeting Date: Wednesday 8 July 2020 at 7.30 pm

Further Information: Tim Young: +614 1487 3003

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Event Details

Event Date Wed 01 July 2020 7:30 pm
Event End Date Wed 01 July 2020 8:10 pm
Individual Price Free for Members and Registered Visitors
Location Online
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