Technical Analysis

Technical indicators are popular tools among traders. Are they truly profitable? How do they work? These are some of the questions that I shall attempt to answer in this section. This section has 2 parts. Part 1 consist of general articles on technical analysis and quantitative stuff, while Part 2 is a glossary of 'how to calculate's to aid you in computing and understanding how technical indicators are affected by its inputs, e.g. current prices etc. Articles in Part 2 comes with VBA code.

CONTENTS

Part 1

1. Filters in Finance: Understanding Technical Indicators [comes with some Math]Explains technical indicators as filters that extract features from a time series. Shows how you can test the responsiveness and volatility of technical indicators over time using unit impulse signals.
2. Frequency Signals in Trading [Comes with some Math]A continuation of Filters in Finance, this article shows you how to tell if your technical indicator is able to capture market cycles of a particular frequency.
3. Why technical indicators alone are not enough?Shows you how the usage of simple moving average rules have evovled over time, becoming more and more complex to chase fading profitability.

Part 2

Note that most of these posts are explanations and computation steps. Unlike most other sources, I put very little focus on how to interpret or use the indicators. However, all indicators below come with VBA code.

1. Accumulation/Distribution Line, ADL, Code, Back-test Results
2. Adaptive Price Zone, APZ, Code, Back-test Results
3. Aroon Indicator, AI, Code, Back-test Results
4. Aroon Oscillator, AO,  Code, Back-test Results [Same as Aroon Indicator]
5. Average Directional Index, ADX
6. Average Directional Movement Rating, ADR
7. Average True Range, ATR
8. Balance of Power, BOP
9. Bollinger Band, BB
10. Buy/Sell Pressure, BSP
11. Chaikin Money Flow, CMF
12. Chaikin Oscillator, COSC
13. Chande Momenum Oscillator, CMO
14. Commodity Channel Index, CCI
15. Darvas Box [Step by step guide]
16. Directional Movement, DM [Step by step guide], Code, Back-test Results
17. Directional Movement Indicator, DMI
18. Directional Movement Index, DX
19. Exponential Moving Average, EMA
20. Fisher Transform [Step by step guide], [VBA Code]
21. Forecast Oscillator
22. Heikin Ashi
23. Hull Moving Average, HMA
24. Kaufman Adaptive Moving Average, KAMA
25. Keltner Channel
26. Moving Average Convergence/Divergence, MACD
27. Time Series Forecast/Linear Regression, TSF
28. Weighted Moving Average, WMA
29. Welles Wilder's Moving Average, WWMA

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The objective of Finance4Traders is to help traders get started by bringing them unbiased research and ideas. Since late 2005, I have been developing trading strategies on a personal basis. Not all of these models are suitable for me, but other investors or traders might find them useful. After all, people have different investment/trading goals and habits. Thus, Finance4Traders becomes a convenient platform to disseminate my work...(Read more about Finance4Traders)