Top 10 Basic Math Indicators

Discussion in 'Technical Analysis' started by dmi3on, Jul 14, 2010.

  1. dmi3on


    What is a basic list of 10 math technical indicators ?
    In general all Indicators in list should provide for each intraday bar new value and provide as much as possible different type of information like Stochastic vs Moving Average.

    From list excluded charts types, basic data (high, low ...), any Trend lines, Fibonacci etc ...

    My list is:
    1. Moving Averages
    2. Stochastic
    3. Bollinger Bands
    4. Average True Range
    5. Rate Of Change
    6. Relative Strength Index
    7. Moving Average Convergence Divergence
    8. Pivot Points -- Daily calculation, but it is included in many books and web sites that why is here.
    9. Commodity Channel Index
    10. William %R

    Not sure about 6,9,10.

    I am doing research on intraday price/volume action. When is done will post stats for each indicator and indicators groups here, ETA 2-4 month.

  2. You can save some time. 6 of the 10 you listed are momentum indicators. They more or less indicate the same thing:

    Stochastics, ROC, RSI, MACD, CCI, %R

    The formula are a little different. Some are normalized (-1 to 1, or 0 to 100), some are not. %R and Stochastics are very similar. I couldn't tell the difference between them.

    They should the same kind of information: momentum.

    Trendlines and Fib levels are not mathematical indicators. They are artifacts of the operator.
  3. ET99


    9 out of 10 indicators are based on some kind of price averaging.
  4. dmi3on


    I understand this, its best list I could come up with.
    By Top 10 I mean like most used indicators.
    What other indicators can make a better list ?
  5. MGJ


    There's a pretty good analysis in Chande & Kroll (amazon link) chapter 1: An Abundance Of Indicators. Here's one representative figure.

  6. maxpi


    I don't use anything on that list but fyi, Williams %R is a stochastic inverted..
  7. Really?

    I failed to see how Williams %R can be a stochastics inverted. Inverted would mean they go in opposite directions.

    Both %R and Stochastics move up when price moves up.

    Here is a side-by-side on the 2 indicators from Investopedia:

  8. I just created a simple 1-minute chart in TradeStation and inserted Stochastics (middle) and William %R (bottom) with all their default settings from TradeStation.

    They looked pretty much identical to me. Not sure if/what I might have done wrong.

  9. Hmmmm.... I see that from the chart the scale goes from -100 (bottom) to 0 (top).

    Something wrong with the TradeStation's formula on %R.
    #10     Jul 17, 2010