Aroon-based indicators do this by measuring price changes relative to time. The PSAR, Developed by Welles Wilder, is created to determine the point in time when there emerges a better than average probability of a trend switching directions. (PLU.V) to some of its moving averages. Conversely, if the current closing price is above the price of 26 periods ago, that would then indicate the possibility for more bullish price action to follow. The basic use of the Parabolic SAR is to buy when the dots move below the price bars (signaling an uptrend) and sell/short-sell when the dots move above the price bars (signaling a downtrend). Moving averages can help identify trends and price reversals. In some cases, MA's may be used as strong reference points for finding support and resistance levels. RSI can be used to help spot overbought or oversold conditions. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R.
Transcontinental Inc. (TCL-B.TO)'s Williams Percent Range or 14 day Williams %R presently is at -14.56. Alternately, if the indicator goes below -80, this may point to the stock being oversold. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
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USA Multifactor Small-Cap Ishares Edge MSCI ETF (SMLF) now has a 14-day Commodity Channel Index (CCI) of 162.78. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move. On the other side, a reading of -100 would imply that the stock is oversold and possibly set for a rally. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. The 14-day ADX presently sits at 45.54. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the large capitalization value sector of the USA equity market, as represented by the Russell 1000 Value Index (the Index). The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book "New Concepts in Technical Trading Systems". The RSI may be useful for spotting abnormal price activity and volatility. As a momentum oscillator, the RSI operates in a set range.