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Larry Williams developed the AD oscillator. It measures accumulation and distribution.
Buying Power is BP = High - Open
Selling Power is SP = Close - Low
Daily Raw Figure or DRF = BP + SP divided 2 *(H-L)
DRF = H-L+C-O/2*(H-L)
The A/D solves the problem of volatility and trading ranges.
The raw DRF and the smoothed DRF are plotted on the same graph, on a scale of 0 to 1 and two horizontal lines can be drawn to isolate the overbought and oversold situation. Two corresponding lines are drawn for the smoothed oscillator.
This oscillator can be used as a trading system: Sell when the DRF generates the overbought zone. Close all long position and go short on the open of the next day. Buy when DRF penetrates the oversold zone. Go long on the open next day.
Adjusted Charts are applied to futures instruments and contain data for more than one contract. They follow the current lead contract through to expiration, and then follow the new lead contract. The scale of the chart is "adjusted" to the scale of the lead contract. This removes any gaps in the history of the chart that occur when one contract expires and another rolls on.
Bar Charts are constructed from the high, low, open and closing price that occurred during the time Interval of the bar.
For Example, on a 30-Minute Bar Chart:
The opening price appears as a dash on the left side of a bar.
The highest price reached during the 30-minute interval appears as the top of the bar.
The lowest price reached during the 30-minute interval appears as the bottom of the bar.
The last price or closing price at the end of the 30-minute interval appears as a dash on the right side of the bar.
The Instrument Baskets option allows the user to create their own synthetic instruments by using various ratios or coefficient formulas. There is a maximum of 16 components allowed and uses the historical database supplied by TraderMade. This option is only available in TraderMade Workstation.
These consist of 2 lines either side of a selected moving average. They can be used as envelopes or filters. The upper and lower ‘bands’ are set to a number of standard deviations away from the moving average, normally 2. Back to top Candlestick charts are the Japanese version of bar charting and have become very popular in recent years among western chartists. The Japanese candlestick records the same four pieces of information as the bar chart – high, low, open & close. A thin line (called the shadow) shows the day’s price range from the high to the low. The wider portion of the candle is called the real body and measures the distance between the open and the close. The real body has a different colour depending on whether the trading interval closed higher or lower than the open. If the close is above the open the colour is pale or green, if the close is lower the colour is dark or red.
Chart highs and lows are shown in the title bar of each chart.
This is part of a study called Ichimoku that comes from Japan. This is the most important line. If both the chiku line and the price are in an uptrend then this signals a buy. A signal is also generated if the chiku line crosses the price action i.e. used in a similar way to a moving average.
The Close is the last price recorded at the end of the selected time interval.
Developed by Donald Lambert, the CCI is a trend-following system for commodities, which produce cyclical price patterns. It does not calculate length but is used as a timing tool. The assumption is that prices move in channels for prolonged periods. The market is oversold or overbought when the price moves too far away from the moving average value, which represents the centre of the market.
The CCI Index can be used as a breakout system: Go long over the +100 line or go short below the -100 line. All positions are liquidated between the two lines.
Continuation Charts are applied to futures instruments and contain data for more than one contract. They follow the current lead contract through expiration, and then follow the new lead contract. They provide a longer history for the chartist to anaylse.
Contract Specific Charts contain data for only one contract. They follow the specified contract through expiration.
Copies a chart ready for pasting to another Windows application.
Time Cycles - Allows the plotting of the distance between bars or candles, by either using arithmetic or Fibonacci values.
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