This method is usually combined with the volume of sales and purchase transactions of shares to determine the market conditions. There are four combinations of values of MFI and volume of transactions, namely the Green market conditions, Fake, Squat, and Fade.

When BW MFI and volume increases at the same time, this means the market is moving in one direction and many traders to participate in these markets. This is a good time to be in the market. When BW MFI and volume down at the same time, this means the interest of the market traders began to fade. It often happens to the front to the end of a trend.

When BW MFI higher and lower volume, this means the market is generally moving in one direction but no participant to build volume. Price movements caused by traders who speculate.

When BW MFI down and volume up, it means there is the battle between bulls and bears (with a large volume) and its strength is almost the same (price does not change significantly). This makes a significant main movement in the opposite direction.

Linear regression in the history of mathematics was first developed by Gauss that a mathematician in 1809. Then Gilbert Raff use this principle to trade shares for the first time. The concept of price inflation used to calculate the price of basic needs, it can be applied to measure the price trend based graphics.

Gilbert Raff said that he uses Regression Channel to calculate accurately the movement of stock prices, bonds, mutual funds and commodities.

The method used in linear regression is :
1. The movement of the indicator shows the trend of rising (bullish) or down (bearish).
2. If through the price it will form a new trend.

This indicator is very easy to use to measure the price trends. With the help of a MA line 1 then we can conclude that if the LR line through the price it will form a new trend.

The nature of this indicator is lagging or too late means that if this indicator is used alone then we do not know when prices will stop rising or falling. It’s recommended that you add the oscillator indicators such as RSI or stochastic to anticipate this.

Klinger Oscillator (KO) set out to develop a volume-based indicator to help in both short- and long-term analysis. This oscillator is a construct of volume and is used to determine whether it (volume) is confirming price changes.

The Klinger Oscillator (KO) is intended to show when price changes are confirmed by volume. The price is expected to follow the Klinger Oscillator if there is a divergence between the price and the indicator.

The most dramatic indicator according to Klinger turns up when the difference from the implied price action and KO occurs on new highs or new lows in the area of overbought or oversold.

Trader should buy when the Klinger Oscillator takes unusually low values below zero then goes up over the trigger line during the period of price being in an uptrend, that means price is higher than 89-day exponential moving average. Trader should sell when the Klinger Oscillator takes extremely high values and then goes lower through the trigger line during a downtrend that means the price which is lower than an 89-day exponential moving average.

The indicator is named after Chester W. Keltner (1909-1998) who described it in his 1960 book How To Make Money in Commodities. But this name was applied only by those who heard about it from him. The Keltner Channel is used to signal price breakouts, show trend, and give overbought and oversold readings.

Overbought is seen when the price comes closer to the upper band, whether oversold is shown by the price approaching to the lower band.

Because the Keltner Channel was created to take advantage of volatility swings and follow market trends, it is not effective in sideways markets.

The Keltner channel indicator is primarily used by savvy investors to predict market trends. There are two bands on a Keltner channel, which are drawn above and below an exponential moving average. The Keltner channel is based on the Average True Range.

Overbought: When the underlying symbol is moving upwards, but the Kairi is approaching its upper bound, the underlying symbol is likely to reverse direction and move downwards.
Oversold: When the underlying symbol is moving downwards, but the Kairi is approaching its lower bound, the underlying symbol is likely to reverse direction and move upwards.

The Kairi Indicator can be used in order to take advantage of an over extended trending market. For example, in an upwardly trending market when the price gets say more than 10% above the simple moving average, the asset could be sold and repurchased when the next hits the simple moving average again.

The Kairi Indicator could also be used in order to detect market tops and bottom. The idea being that market tops and bottoms often occur when the price is at an extreme value in relation to its moving average. That is, the Kairi Indicator should take an extreme value at market tops and bottoms.

Kagi Chart was developed by the Japanese in the late 1800s. Kagi charts are similar to point and figure charts in that it is not time based, but is dependent upon the price movement of the security to print a new line on the chart.

From the first closing price, if today’s price is greater than or equal to the closing price, draw a thick line from the closing price to today’s closing price, otherwise draw a thin line from the closing price to the new closing price.

Subsequently, compare the closing price to the top or bottom of the previous kagi line. A new kagi line is started if price reverses by a set ‘reversal amount’ to the new closing price, otherwise no lines are drawn.

The ‘IMI’ indicator is used in indicator formula construction to narrow the stock pre-screener results to include only those stocks that have an imi restricted to the parameters set for the imi indicator.

The calculation of the IMI is very similar to the RSI, except it uses the relationship between the intraday opening and closing prices to determine whether the day is “up” or “down.” If the close is above the open, it is an up day. If the close is below the open it is a down day. Therein lies its tie to candlestick charting. For those familiar with candlestick charting, the IMI separates the black and white candlesticks and performs a RSI calculation on the candlestick bodies.

Overbought/oversold: Index values above 70 indicate a potential overbought situation with lower prices ahead. Values below 30 indicate a potential oversold situation with higher prices ahead. As with all overbought/oversold indicators, you should first quantify the trendiness of the market before acting on the signals. Indicators like the VHF, CMO, and r-squared can be used to gauge the trendiness of the market.

The Intraday Momentum Index (IMI) is the same formula as the Relative Strength Index (RSI), except intraday differences are used as input. In otherwords, while the RSI uses the day-to-day change as input, the IMI uses the difference between the high and low values for the day.

A scale that Inertia is measured on is from 0 to 100. If the indicator is below 50 the Inertia is seen to be negative. Positive Inertia is supposed to have the indicator above 50. Positive inertia signs show a long-term upward trend whether long-term downtrends are indicated by negative Inertia.

The inertia indicator was developed by Donald Dorsey and is an outgrowth of Dorsey’s relative volatility index. The name inertia was chosen because of his definition of a trend. He states that a trend is simply the “outward result of inertia.” It takes significantly more energy for a market to reverse direction than to continue along the same path.

Therefore, a trend is a measurement of market inertia. Dorsey asserts that volatility may be the simplest and most accurate measurement of inertia. The inertia indicator is simply a smoothed RVI [Relative Volatility Index]. The smoothing mechanism is a linear-regression indicator.

Ichimoku Kinko Hyo is used to indicate in which direction the market is moving, its entry and exit points. It is used for determining of a market trend, support and resistance levels, and to generate signals of buying and selling. This indicator works best at weekly and daily charts.

Rather than looking at indicators and moving averages separately, Ichimoku encourage one to have a ‘macro’ view of what’s going on. From there, we can decide if we want to short, long, or even sidestep security.

It does look very complicated when a trader sees the indicator for the first time, but don’t hesitate to give this indicator a try because the complexity quickly disappears once you gain an understanding of what the various lines mean and why they are used.

Historical volatility is defined by Sheldon Natenberg, as the standard deviation of the logarithmic price changes measured at regular intervals of time. In Mr. Natenberg’s book, Option Volatility & Pricing, he covers volatility in detail and gives the formula for computing historical volatility.

Historical volatility uses historical (daily, weekly, monthly, quarterly, and yearly) price data to empirically measure the volatility of a market or instrument in the past. The value rendered by a historical volatility study is the standard deviation of bar-to-bar price differences.

On all historical charts, price differences are measured on a settlement-price to settlement-price basis. To calculate the historical volatility study, you must first identify the mean and then calculate the standard deviation.