Other Technical Indicators

Parabolic SAR: How to Read It, Parameter Settings, and Trailing Stops

Parabolic SAR is a trend-following indicator created by J. Welles Wilder that plots dots above or below the candles to show trend direction, with a cross between price and the dots acting as a stop-and-reverse signal. This guide covers its definition and calculation logic, three basic uses, the Step and Maximum parameters, its weakness in ranges and how to combine it with ADX and moving averages, plus MT4/MT5 setup.

Momentum Indicator: Formula, How to Read It, and Divergence

Momentum is an oscillator that measures the speed of price change and tends to lead price at turning points. This guide covers the difference between the textbook difference form (around 0) and the MT4/MT5 ratio form (around 100), three ways to read it, regular and hidden divergence, and its shared basis with RSI, KD, CCI and MACD.

Trendlines: How to Draw Them, Judge Validity, and Confirm Breakouts

A trendline connects consecutive highs or lows to mark the direction and pace of a trend, and doubles as dynamic support and resistance. This guide covers the three decisions to make before drawing, what makes a trendline valid, three ways to filter breaks, trend channels and fan lines, and how to draw and use them in MT4/MT5.

Standard Deviation Explained: Formula, the Limits of the Normal Distribution, and Trading Applications

Standard deviation is the statistical measure of how far price is spread around its mean, and the shared basis for volatility, Bollinger Bands and the Sharpe ratio. This guide covers the formula and the two ways to calculate it, how to read sigma, where the normal-distribution assumption breaks down, the MT4/MT5 StdDev indicator, and how to turn sigma into a stop distance and position size.

Gann Theory