Technical indicators on Legend allow you to visualize price data and market trends using mathematical calculations, and can help you make informed decisions before placing your next trade.

To add indicators to your chart widget, select the indicator icon in the upper right hand corner of the widget and select the indicator(s) you’d like to add.

You can also create and save your own indicator template to apply the same set of indicators to multiple chart widgets.

To create an indicator template from the chart widget:

1. Click on the Indicators icon to open the indicator menu
2. Add the indicators you want to include in your template
3. Click on the folder icon at the top-right of the indicator menu to save your chart's current indicators as a template
4. Name your template

To apply an indicator template to a chart widget:

1. Click on the indicator icon to open the indicator menu
2. Click on the folder icon at the top-right of the indicator menu and select the template you want to apply to your chart

Here’s a complete list of indicators you can add with descriptions below:

• Acceleration / Deceleration (AC)
• Accumulation/distribution (A/D)
• Aroon indicator
• Aroon Oscillator
• Average directional movement index (ADX)
• Average directional movement index rating (ADXR)
• Average true range (ATR)
• Awesome Oscillator (AO)
• Bollinger Bands (BOLL)
• Commodity Channel Index (CCI)
• Directional movement index (DX)
• Double exponential moving average (DEMA)
• Exponential moving average (EMA)
• Exponential moving average envelope (EMA envelope)
• Fast stochastic oscillator
• Ichimoku Cloud (ICH)
• Keltner Channels
• Linear regression channel
• Linear regression curve
• Linear regression slope
• Momentum
• Money Flow Index (MFI)
• Moving average convergence/divergence (MACD)
• On-balance volume (OBV)
• Parabolic SAR
• Pivot points (PP)
• Price channel
• Price volume trend (PVT)
• Relative strength index (RSI)
• Schaff Trend Cycle
• Simple moving average (SMA)
• Simple moving average envelope (SMA envelope)
• Slow stochastic oscillator
• Smoothed moving average (SMMA)
• Smoothed moving average envelope (SMMA envelope)
• Stochastic oscillator
• Time series forecast (TSF)
• Triangular moving average (TMA)
• Triple exponential average (TRIX)
• Triple exponential moving average (TEMA)
• True strength index (TSI)
• Ultimate Oscillator
• Volume-weighted average price (VWAP)
• Weighted moving average (WMA)
• Weighted moving average envelope (WMA envelope)
• Williams Alligator
• Zig zag

Acceleration / Deceleration (AC) gauges momentum changes in the market and may provide early signals of potential trend reversals or trend continuations. It measures the acceleration or deceleration of the current trend based on how fast the price is changing.

Generally, if the AC is positive and increasing, it suggests that the upward trend may continue. If it’s negative and decreasing, it may suggest the continuation of a downtrend. Conversely, a change in the histogram's direction may indicate a potential trend reversal. A positive to negative change may indicate that a bullish trend is weakening, suggesting a possible bearish reversal. A negative to positive change may suggest that a bearish trend is losing momentum, and a bullish reversal may be coming soon.

AC values are calculated as the difference between Awesome Oscillator (AO) and its 5-period Simple Moving Average (SMA).

Here’s how AC is calculated:

• AC = AO - SMA (AO)

While the AC indicator can be useful for detecting changes in momentum, its sensitivity to price fluctuations might generate false signals during periods of low volatility or uncertainty. It’s best used in combination with other indicators.

Accumulation/distribution (A/D) is a volume oscillator that helps identify whether an asset is being accumulated (i.e. being bought more) or distributed (being sold more).

A/D can help identify divergences between asset price and volume flow, which in turn helps traders identify how strong or weak a price trend is. For example, if an asset’s price is rising but the A/D is falling, it could mean there may be a price decline in the near future because the asset’s buying volume isn’t keeping pace with its price increase.

The oscillator values are calculated as the difference between the highest and lowest prices of a specified number of periods multiplied by the period's volume of ticks (TV). Here’s how A/D is calculated:

AD = TV x [(Close - Low) - (High - Close) / (High - Low)]

• TV: The number of price changes in a contract over a specific time period.
• Close: The closing price calculated for the period.
• Low: The lowest price calculated for the period.
• High: The highest price calculated for the period.

The Aroon indicator is a technical indicator that helps traders spot trends in the market. It has two parts: Aroon up and Aroon down.

• Aroon up : Tracks how long it's been since the highest price was reached in a given period.
• Aroon down : Tracks how long it's been since the lowest price was reached in that same period.

The values of these two plots help traders understand whether the market is moving upward (bullish) or downward (bearish). When Aroon up is higher than Aroon down, it suggests that prices are trending up. If Aroon down is higher, it suggests prices are trending down.

Here’s how it’s calculated:

• Aroon Up = 100 x (n-periods since n-day High) / n
• Aroon Down = 100 x (n-periods since n-day Low) / n

Where:

• n – the number of periods
• n-day High – the n-days highest price
• n-day Low – the n-days lowest price

Aroon Oscillator helps traders identify a trend’s strength and direction. It measures the time elapsed since an asset’s last high and low within a set period. This helps provide insight into whether an asset is trending or entering a period of consolidation, in which the price moves in a narrow price range with no clear directional trend.

The measurements are made by first calculating the Aroon up and Aroon down:

• Aroon up: Measures the number of periods since the highest high within the period. The closer to 100, the stronger the uptrend.
• Aroon down: Measures the number of periods since the lowest low within the period. The closer to 100, the stronger the uptrend the stronger the downtrend.

The Aroon Oscillator is then calculated by subtracting Aroon up from Aroon down. The resulting value will fluctuate between (+)100 and (-)100. The higher a positive number is, the stronger the uptrend, and the lower a negative number is, the stronger the downtrend.

Here’s how the Aroon Oscillator is calculated:

• Aroon Oscillator = Aroon up − Aroon down

The Aroon Oscillator is best suited for analyzing trending markets, and may produce false signals in sideways markets (little to no upward or downward movement). Generally, it’s best used in combination with other indicators.

The average directional movement index (ADX) is a technical indicator that helps traders understand how strong a trend is, whether it's moving up or down. It's part of a system called the directional movement system and combines two indicators: DMI+ (which shows positive movement) and DMI- (which shows negative movement).

The ADX value ranges from 0 to 100:

• Readings below 20 suggest that the trend is weak or not strong enough to act on.
• Readings above 40 suggest a strong trend, either up or down.

The ADX helps traders decide whether it's a good time to enter or exit trades based on the strength of the current trend.

Here’s how it’s calculated:

• ADX = MAi x [ |DMI(+) - DMI(-)| / (DMI(+) + DMI(-)] x 100

Where:

• MAi – the Moving Average value calculated for the period
• DMI(+) – the positive Direction Movement Index value calculated for the period
• DMI(+) – the negative Direction Movement Index value calculated for the period

Average directional movement index rating (ADXR) helps traders determine whether market trends are strengthening or losing momentum. It does this by smoothing the ADX values over two periods. This average helps to reduce noise when assessing market conditions.

Generally, higher values produced by the indicator suggest stronger trends, while lower values suggest weaker trends or losses in momentum.

Here’s how ADXR is calculated:

• ADXR = (ADX + ADXn) / 2

Where:

• ADX – the Average Directional Movement Index value calculated for the current period
• n – the number of periods

The smoothing process of ADXR may reduce its sensitivity to short term trends, making it less useful in volatile markets. It is generally most effective when paired with other indicators.

The average true range (ATR)is a technical indicator that measures how much the price of an asset is moving. This is also known as volatility. It takes into account not just the high and low prices of the day but also any gaps between the closing price of one day and the opening price of the next.

Here's how ATR is calculated:

Average true range (ATR): The average of the True Ranges over a set period.

• True range (TR): The largest value from these three calculations:
  • The difference between the current high and low.
  • The difference between the current high and the previous close.
  • The difference between the previous close and the current low.

ATR helps traders understand how much an asset's price is likely to move. A higher ATR means more volatility, which can signal bigger price swings. A lower ATR suggests less volatility and smaller price movements.

Here’s how it’s calculated:

• ATR = [ATRi-1 x (n - 1) + TRi ] / n
• TRi = max [(Highi - Lowi ), |Highi - Closei-1|, (Lowi - Closei-1)]

Where:

• ATRi – the Average of TRi for the period
• ATRi-1 – the Average True Range value preceding the ATRi value
• TRi – the True Range value calculated for the period
• n – the number of periods

Awesome Oscillator (AO) measures market trends and assesses the strength of a stock's price movement.

AO is plotted as a histogram that oscillates above and below a zero line, represented as the point where the 5-period (fast moving average) and 34-period (slow moving average) SMAs are equal.

Fluctuations above and below the zero line indicate the strength of the trend. Values above the zero line suggest that short-term momentum is stronger than long-term momentum, which may signal a bullish trend. Values below the zero line indicate that short-term momentum is weaker than long-term momentum, which could suggest a bearish trend.

The AO values are calculated as the difference between 34-period and 5-period Simple Moving Averages (SMA).

Here’s how AO is calculated:

• AO = Fast MA - Slow MA

AO is most effective in trending markets. It may produce unreliable signals in sideways or low-volatility markets. As a lagging indicator, it may also react slowly to sudden market changes.

Bollinger Bands create 2 bands around a moving average (MA). Each is usually 2 standard deviations away from the MA. Analysts may use Bollinger Bands to help determine whether an asset is undervalued (closer to the lower band) or overvalued (closer to the upper band).

Here’s how it’s calculated:

• MidLine = SMAn (TP)
• LowerBand = MidLine - (σTPn x m)
• UpperBand = MidLine + (σTPn x m)

Where:

• SMA – Simple Moving Average for the period
• TP – Typical Price
• σTPn – Standard Deviation over last n periods of TP
• m – the multiplier
• n – the number of periods

The Commodity Channel Index (CCI) is a momentum oscillator that helps traders understand how far the price of a security is from its average, which can indicate whether it's overbought or oversold.

Here's how it works:

1. Typical price (TP): This is the average of the high, low, and close prices for a given period.
2. Simple moving average (SMA): This is the average of the typical prices over a set number of periods.
3. Statistical mean: The average absolute deviation of the typical price from the SMA.

The CCI is calculated by taking the difference between the typical price and its SMA, then dividing that difference by the statistical mean of the typical price.

CCI oscillates around a zero line, with two adjustable levels to indicate overbought and oversold conditions:

• Above zero: Suggests that market momentum is strengthening.
• Below zero: Suggests that market momentum is weakening.

Traders use the CCI to spot potential buying or selling opportunities based on whether the momentum is picking up or slowing down.

Here’s how it’s calculated:

• CCI = [TPn - SMAn (TP)] / [0.15 x MDn (TP)]

Where:

• TPn – Typical Price for n-period
• SMAn – Simple Moving Average for n-period
• MDn – Mean Deviation for n-period
• 0.15 – Lambert's constant
• n – the number of periods

Directional movement index (DX) helps traders determine the strength and direction of a trend. This is measured through the positive directional index (DI+), negative directional index (DI-), and the average directional index (ADX, which is a smoothed version of DX). The ADX gauges the intensity of a potential trend, while DI+ and DI- help add directional context.

Generally, the larger the spread is between DI+ and DX-, the stronger the price trend is. The DX line then fluctuates on the 0 to +100 scale. Readings above 25 indicate the trend's strength.

Here’s how DX is calculated:

• DX = ( |(DI+) - (DI-)| / |(DI+) + (DI-)| ) x 100
• DI+ = (Smoothed (DM+) / ATR) x 100
• DI- = (Smoothed (DM-) / ATR) x 100

Where:

• DM+ (directional movement) = Current high - Previous high
• DM- (directional movement) = Previous low - Current low
• ATR: Average true range

The DMI can generate false signals in volatile markets, so it is generally most effective when used with other indicators to confirm signals.

A double exponential moving average (DEMA) is a smoothed moving average, and shows less lag than a traditional exponential moving average (EMA).

When an asset’s price is above the DEMA, and the DEMA is rising, it may confirm a bullish trend. Conversely, if an asset’s price is below the DEMA, and the DEMA is falling, it may confirm a bearish trend. DEMAs can be helpful for traders executing shorter-term strategies because it’s more reactive to recent data than traditional moving averages.

DEMA is calculated as the difference between the doubled value of the EMA and the moving average of the same EMA:

• DEMA = 2 x EMA(n) - EMA (EMA(n))

Where:

• n = the number of periods (length)

DEMA includes these customizable inputs:

• Length: The number of bars used to calculate the indicator
• Displace: The number of bars the indicator will be shifted to

Exponential moving average (EMA) is similar to the moving average (MA). Both show the average closing price over a time period. However, unlike MA, EMA places more weight on recent data. Because of this, it reacts faster to sudden price swings. Analysts generally compare EMAs for different time periods to help determine whether price trends will continue. EMA is considered more sensitive than MA, and is generally favored among short-term analysts.

Here’s how it’s calculated:

• EMA = [K x (C - P)]

Where:

• K – exponential smoothing constant
• C – current price
• P – previous periods EMA (an SMA is used for calculations)

An exponential moving average envelope (EMA envelope) plots two exponential moving averages (EMAs) as upper and lower bands (envelopes) on a price chart. The bands may represent oversold (upper band) and overbought (lower band) levels. They can be shifted up and down by fixed percentage value.

Traders tend to use shorter (faster) moving averages and relatively tight envelopes. Investors often use (slower) moving averages with wider envelopes. When the price is near the upper band, it may indicate an uptrend, conversely while a price near the lower band may signal a downtrend. When price consistently touches or moves beyond the upper band, it indicates an asset may be overbought (which means there’s potential for a price reversal). And when price consistently touches or moves beyond the lower band, it indicates an asset may be oversold (which means there’s potential for an upward correction).

EMA envelope includes these customizable inputs:

• Length: The number of bars used to calculate the indicator.
• Displace: The number of bars the indicator will be shifted to.
• Percent below: The percentage the indicator will be shifted down to create the lower band.
• Percent above: The percentage the indicator will be shifted to create the upper band.

Fast stochastic oscillator identifies an asset’s market strength and overbought or oversold conditions.

It’s calculated by comparing an asset’s closing price to its price range over a specified period, typically 14 days, to measure the strength and direction of price momentum. The calculation results in a value (%K) between 0 and 100 where the closer the value is to 100 the stronger the indicator is suggesting a potential overbought condition. Conversely, the closer the value is to 0 the stronger the indicator is suggesting a potential oversold condition.

Here’s how the fast stochastic oscillator is calculated:

• (fast) %K = ((Current close - Lowest low) / (Highest high - Lowest low)) x 100
• %D = 3 day simple moving average of %K

When the %K line crosses above the %D line in the oversold region (below 20), it suggests a possible upward reversal. When the %K line crosses below the %D line in the overbought region (above 80), it may suggest a potential downward reversal.

The fast stochastic oscillator is highly sensitive to price changes, making it generally more useful for short-term analysis. It’s often used in combination with other indicators to confirm signals and reduce noise.

An Ichimoku Cloud is a technical indicator that gives traders a clear view of the market by showing momentum, support and resistance levels, and trends—both direction and strength. It’s like getting a full snapshot of the market with just one indicator.

An Ichimoku Cloud consists of several key lines:

• Tenkan-sen (conversion line): A 9-period moving average that’s the most responsive of all the lines. Helps with spotting short-term trends.
• Kijun-sen (base line): A 26-period moving average that shows the overall trend.
• Chikou Span (lagging line): A line that lags behind the current price, using past data from the Tenkan-sen and Kijun-sen to confirm trends.
• Senkou Span A (leading line A): A 52-period moving average that helps form the Ichimoku Cloud.
• Senkou Span B (leading line B): The closing price plotted 26 periods back. Also part of the Ichimoku Cloud.

Here’s how traders use these lines:

• When the price is above the Kijun-sen, it indicates an uptrend, and when below, it suggests a downtrend.
• A buy signal is generated when the Chikou Span crosses above the price or when the Tenkan-sen crosses above the Kijun-sen.
• A sell signal occurs when the Chikou Span crosses below the price or when the Tenkan-sen crosses below the Kijun-sen.

For stronger confirmation of a trend, traders look for both the Chikou Span and Tenkan-sen to cross in the same direction.

Keltner Channels is a technical indicator that helps traders understand market trends by showing volatility through three key lines on a chart:

1. Middle line: An exponential moving average (EMA) of the asset's price.
2. Upper band: Placed above the EMA, this line is set at a distance equal to twice the average true range (ATR).
3. Lower band: Placed below the EMA, also at a distance equal to twice the ATR.

Here's how to use them:

• When the price touches or moves above the upper band, it suggests a bullish signal, meaning the price might continue to rise.
• When the price touches or drops below the lower band, it suggests a bearish signal, meaning the price might continue to fall.

Keltner Channels help traders confirm the direction of a trend and can be a useful tool for spotting potential buying or selling opportunities. The bands expand and contract with volatility, making it easier to visualize price movements.

Linear regression channel helps traders analyze the upper and lower limits of an existing trend. The channel has three lines. The upper and lower channel lines mark the top and bottom of the trend. The center linear regression line is plotted as the best fit through the price data and shows the trend direction of an asset over time.

Prices nearing the lower channel line suggest an asset may be oversold, while prices nearing the upper channel line suggest that an asset may be overbought. Additionally, if the price of an asset breaks out above or below the channel lines, it could indicate strong momentum in that direction.

Here’s how linear regression channel is calculated:

• y = a + bx
• b = (nΣxy - ΣxΣy) / ( nΣx2 - (Σx)2 ))
• a = (Σy - bΣx) / n

Where:

• y – the data price source
• x – the number of bars
• a – the constant (the value when x equals zero)
• b – the slope of the line
• n – the number of data points selected

As a lagging indicator, the linear regression channel is generally best used in combination with other indicators.

Linear regression curve helps traders follow a trend’s direction by plotting a line through an asset’s historical price data.

Traders often use this tool in tandem with others to evaluate broad trends and deviations that may indicate overbought or oversold conditions.

Here’s how Linear regression curve is calculated:

• y = a + bx
• b = (nΣxy - ΣxΣy) / ( nΣx² - (Σx)² ))
• a = (Σy - bΣx) / n

Where:

• y – the data price source
• x – the number of bars
• a – the constant (the value when x equals zero)
• b – the slope of the line
• n – the number of data points selected

As a lagging indicator, the linear regression curve is generally best used in combination with other indicators.

The linear regression slope is a technical tool used to assess the direction and strength of an asset’s price trend. The tool is based on linear regression analysis, which fits a straight line through a specified period of closing prices. The slope of this line indicates whether prices are trending up, down, or moving sideways, helping traders to gauge momentum and potential reversals.

Here’s how the linear regression slope is calculated:

• y = a + bx
• b = (nΣxy - ΣxΣy) / ( nΣx² - (Σx)² ))
• a = (Σy - bΣx) / n

A positive slope may indicate an uptrend, while a negative slope may indicate a downtrend. Since the linear regression slope is a lagging indicator, it may be slow to react to sudden price changes.

Momentum is a technical indicator that helps traders see how quickly the market prices are changing over a certain period. It shows whether prices are picking up speed (acceleration) or slowing down (deceleration).

The momentum indicator line moves above and below a zero line:

• Above the zero line: This indicates an uptrend, meaning prices are gaining momentum and might continue rising.
• Below the zero line: This indicates a downtrend, meaning prices are losing momentum and might continue falling.

Traders use this indicator to get a sense of the market’s strength and to spot potential shifts in trends.

Here’s how it’s calculated:

• Momentum = (Price today / Price n periods ago) x 100

Where:

• Price – the data price source

The Money Flow Index (MFI) is a technical indicator that helps traders understand the flow of money into and out of an asset. It's like the relative strength index (RSI), but with a twist: it also looks at the volume of trades, not just price. The MFI gives a score between 0 and 100. If the score goes above 80, it could mean the asset is overbought. If it falls below 20, the asset might be oversold.

Here’s how it’s calculated:

• Money Flow = TP x Volume
• Money Ratio = Positive Money Flow / Negative Money Flow
• Money Index Flow = 100 - [100 / (1 + Money Ratio)]

Where:

• TP – Typical Price
• Positive Money Flow – today's Typical Price is greater than yesterday's Typical price; sum of the positive money over the specified period
• Negative Money Flow – today's Typical Price is less than yesterday's Typical price; sum of the negative money over the specified period

Moving average convergence divergence (MACD) is a momentum indicator, like RSI. It shows the difference between 2 exponential moving averages (EMAs): one short-term (the fast EMA), and one long-term (the slow EMA). This difference is plotted against a signal line, which is usually the 9-day EMA.

Analysts generally become bullish if the MACD crosses above the signal line, and bearish if it crosses below.

Here’s how it’s calculated:

• MACD = 12-period EMA - 26-period EMA
• Singal Line = SMA (MACD)
• Histogram = MACD -Signal Line

Where:

• EMA – Exponential Moving Average
• SMA – Simple Moving Average

On-balance volume (OBV) is a technical indicator that helps you see how the trading volume of an asset can potentially predict future price movements. OBV adds up the volume on days when the asset’s price goes up and subtracts it on days when the price goes down. This running total gives you an idea of whether more people are buying or selling over time.

When OBV is on the rise, it usually means that there's strong buying interest, which can signal a continuing uptrend. On the flip side, if the OBV is dropping, it might suggest that selling pressure is increasing, which could lead to a downtrend. If OBV is flat, the market might be in a holding pattern without a clear direction.

Sometimes the asset price might move before OBV does, which can be a sign of a potential trend reversal. This often happens at the peak of a bull market or the bottom of a bear market. Keeping an eye on OBV can help traders spot these critical moments.

In short, OBV is like a sneak peek into the market's mood, showing you where the money is flowing.

• If today's close is greater than yesterday's close then OBV = yesterday's OBV + today's volume
• If today's close is less than yesterday's close then OBV = yesterday's OBV - today's volume
• If today's close is equal to yesterday's close then OBV = yesterday's OBV

Parabolic SAR (stop and reverse)can be used to help set a trailing stop or determine entry/exit points. The SAR follows prices as they move up or down and indicates the "stop and reverse" points (dots) on the chart. When the dots are below prices, the SAR signifies a bullish trend. When the dots are above prices, the SAR signifies a bearish trend.

Here’s how Parabolic SAR is calculated:

• Uptrend: SAR + Prior AF (Prior EP - Prior SAR)
• Downtrend: SAR - Prior AF (Prior SAR - Prior EP)

Where:

• AF: Default of 0.02, increasing by 0.02 each time a new EP is reached, with a maximum of 0.20
• EP: Highest high for an uptrend and lowest low for a downtrend, updated each time a new EP is reached

Pivot points (PP) are support and resistance levels used to determine an asset’s overall trend over daily, weekly, or monthly time intervals.

Generally, trading above the pivot point on the following trading day indicates bullishness—and trading below indicates bearishness.

Pivot points includes:

• A base level called a pivot point (PP). The PP is the average of the intraday high and low and the closing price from the last trading day.
• 3 resistance levels above the PP (R1, R2, R3)
• 3 support levels below the PP (S1, S2, S3)

The levels use these calculations:

• Resistance level 3 (R1)= Previous day high + 2(Pivot - Previous day low)
• Resistance level 2 (R2) = Pivot + (Resistance level 1 - Support level 1)
• Resistance level 1 (R1) = (Pivot x 2) - Previous day low
• Pivot point (PP) = Previous day (high + low + close) / 3
• Support level 1 (S1) = (Pivot x 2) - Previous day high
• Support level 2 (S2) = Pivot - (Resistance level 1 - Support level 1)
• Support Level 3 (S3) = Previous day low - 2(Previous day high - PP)

Price channel helps traders identify potential breakouts in an asset’s price.

It plots channel lines along the highest and lowest price points for an asset in a given time period. Generally, breakouts above the upper channel suggest bullish momentum, while dips below the lower channel suggest bearish trends.

As a lagging indicator, the price channel may produce false signals and is generally most effective when paired with other indicators.

The price volume trend (PVT) indicator helps traders assess the strength and direction of an asset’s price change.

Generally, a sequence of rising peaks (increasing high points) or failing troughs (decreasing low points) in the PVT suggest a strong trend, while a flat PVT suggests that the market is not trending.

PVT is calculated as a cumulative sum of percentage changes of closing prices multiplied by daily volume.

Here’s how PVT is calculated:

• PVT = Volume x (Today's closing price - Previous closing price) / Previous closing price

PVT may produce false signals in low volume markets. It’s generally most effective when used in combination with other indicators.

Relative strength index (RSI) is a momentum indicator, represented as a number between 0 and 100. This means that it analyzes the rate at which prices rise and fall. Specifically, RSI uses the magnitude of recent changes in price to evaluate whether an asset is overbought or oversold. Analysts generally consider an asset overbought if its RSI is above 70, and oversold if its RSI is below 30.

Here’s how it’s calculated:

• RSI = 100 - (100 / 1 + RS)
• RS = Average Gain / Average Loss

Schaff Trend Cycle (SCT) is an oscillator that helps identify or confirm price direction and market turning points in repeating high and low price patterns (cycles). The SCT is based on moving average convergence/divergence (MACD)—double smoothed with the slow stochastic oscillator, making it more sensitive to market price changes. The STC line oscillates on the scale from 0 to +100 with oversold levels at 20 and overbought levels at 80.

Here’s how SCT is calculated:

• STC = 100 x [(MACD - %K (MACD)) / (%D (MACD) - %K (MACD)]

Where:

• MACD: Moving average convergence/divergence
• %K: Fast K period
• %D: Slow D period

The simple moving average shows the average closing price over a time period. For example, any given point on a 20-day moving average shows the average of all closing prices from the previous 20 days.

Analysts generally use SMA to smooth out price data. It can also help reduce the impact of short-term price fluctuations. By comparing MAs for different time periods, analysts may be able to identify price trends over time.

Here’s how it’s calculated:

• SMA = (A1 + A2 ... + An) / n

Where:

• An – the price of an asset at period n
• n – the number of total periods

A simple moving average envelope plots two simple moving averages (SMAs) as upper and lower lines (envelopes) over a chart. The bands may represent oversold (lower band) and overbought (upper band) levels. They can be shifted up and down by fixed percentage value. Traders tend to use SMA envelope’s upper and lower bands to spot potential price reversals or corrections. When the price is near the upper band, it may indicate an uptrend, while a price near the lower band may signal a downtrend. When price consistently touches or moves beyond the upper band, it indicates an asset may be overbought (which means there’s potential for a price reversal). And when price consistently touches or moves beyond the lower band, it indicates an asset may be oversold (which means there’s potential for an upward correction).

Here’s how SMA envelope is calculated:

• SMA1 = (A₁ + A₂ ... + A_n) / n
• SMA2 = (A₁ + A₂ ... + A_n) / n

Where:

• An = The price of an asset at period n
• n = The number of total periods

SMA envelope includes these customizable inputs:

• Length: The number of bars used to calculate the indicator
• Displace: The number of bars the indicator will be shifted to
• Percent below: The percentage the indicator will be shifted down to create the lower band
• Percent above: The percentage the indicator will be shifted to create the upper band

The slow stochastic oscillator identifies potential trend reversals, as well as overbought and oversold conditions in assets. The slow stochastic oscillator smooths out noise from the fast stochastic oscillator by averaging the value over 3 periods, helping provide a clearer picture of market movement.

It’s calculated using an asset’s closing price compared to its price range over a specified period, typically 14 days, to measure the strength and direction of price momentum. The calculation results in a value (%K) between 0 and 100 where the closer the value is to 100 the stronger the indicator is suggesting a potential overbought condition. Conversely, the closer the value is to 0 the stronger the indicator is suggesting a potential oversold condition.

Here’s how the Slow stochastic oscillator is calculated:

• (slow) %K = (((Current Close - Lowest Low) / (Highest High - Lowest Low)) x 100) averaged over 3 periods
• %D = 3 day simple moving average of %K

When the %K line crosses above the %D line in the oversold region (below 20), it suggests an upward reversal. When the %K line crosses below the %D line in the overbought region (above 80), it suggests a potential downward reversal.

The slow stochastic oscillator is generally most useful when paired with other indicators to avoid producing false signals in choppy or sideways markets.

A smoothed moving average (SMMA) is an exponential moving average (EMA) smoothed with a longer time period. SMMA uses more data points in its calculation and may provide more precise results than a simple moving average (SMA), in part because its plot has fewer line fluctuations. It can help traders identify longer-term trends.

Here’s how SMMA is calculated:

• SMMA = [Sum_i-1 - SMMA_i-1 + Close_i] / n

Where:

• Sum_i-1 = The sum of the source prices over all periods
• Close_i = The current closing price
• n = The number of total periods

SMMA includes these customizable inputs:

• Length: The number of bars used to calculate the indicator
• Displace: The number of bars the indicator will be shifted to
• Percent below: The percentage the indicator will be shifted down to create the lower band
• Percent above: The percentage the indicator will be shifted to create the upper band

A smoothed moving average envelope (SMMA envelope) indicator plots two smoothed moving averages (SMMAs) as upper and lower bands (envelopes) over a price chart. The bands may represent oversold (lower band) and overbought (upper band) levels. They can be shifted up and down by a fixed percentage value.

Traders tend to use the SMMA envelope when they want to view smoother signals than a traditional SMA. When the price is near the upper band, it may indicate an uptrend, while a price near the lower band may signal a downtrend. When price consistently touches or moves beyond the upper band, it indicates an asset may be overbought (which means there’s potential for a price reversal). And when price consistently touches or moves beyond the lower band, it indicates an asset may be oversold (which means there’s potential for an upward correction).

Here’s how SMMA envelope is calculated:

• SMMA1 = [Sum_i-1 - SMMA_i-1 + Close_i] / n
• SMMA2 = [Sum_i-1 - SMMA_i-1 + Close_i] / n

Where:

• Sum_i-1 = The sum of the source prices over all periods
• Close_i = The current closing price
• n = The number of total periods

SMMA envelope includes these customizable inputs:

• Length: The number of bars used to calculate the indicator
• Displace: The number of bars the indicator will be shifted to
• Percent below: The percentage the indicator will be shifted down to create the lower band
• Percent above: The percentage the indicator will be shifted to create the upper band

The stochastic oscillator is a technical indicator that helps traders gauge market strength by comparing a security's closing price to its price range over a specific time period.

Here’s how it works:

• %K length: This line shows the basic stochastic value and reflects the market's strength.
• %K slowing: The length of the moving average to be applied to %K
• %D length: This is a smoothed version of %K and helps filter out the noise to give clearer signals.

Both lines move between 0 and 100, and traders watch for crossovers with specific levels:

• Above 80: Indicates overbought conditions and potential sell signals.
• Below 20: Indicates oversold conditions and potential buy signals.

The stochastic oscillator’s default settings make it an average of the fast and slow stochastic oscillators. By adjusting the number of periods for %K and %D, traders can make it behave more like either the fast or slow version, depending on their needs. This flexibility allows for tailored sensitivity to market conditions.

The time series forecast (TSF) indicator helps traders potentially better understand future price movements based on historical datasets.

The TSF calculation is based on a linear regression algorithm, which makes it more responsive to prices than classic moving average calculations. It displays the statistical trend based on linear regression analysis using the least squares method. This partially eliminates the time lagging effect occurring in Moving Average studies as the linear regression value is as close as possible to the values being averaged.

The TSF estimate is based on the trend of an asset’s price over a specific time period. If an asset’s current trend continues, the TSF’s value is a forecast of the next time period’s price. This type of prediction is purely mathematical as all calculations are based on least squares averaging of previous values.

A triangular moving average (TMA) is essentially a double-smoothed simple moving average (SMA)—but with extra weight added to the line. The extra weight is added to the central area of the moving average, which creates a triangle shape. Because it includes more lag than traditional moving averages, TMA may be helpful for traders conducting analysis on slower-moving markets.

TMA includes these customizable inputs:

• Length: The number of bars used to calculate the indicator
• Displace: The number of bars the indicator will be shifted to

Here’s how TMA is calculated:

• TMA = (SMA₁ + SMA₂ + SMA₃ + SMA₄ + ... SMA_n ) / n

Where:

• n = the period used in calculation

A triple exponential average (TRIX) is a histogram-type oscillator that quantifies the market’s current momentum. TRIX is a moving average that has been smoothed three times with an exponential moving average (EMA). TRIX oscillates above or below the zero line where the extreme values can indicate corresponding overbought and oversold areas. When the TRIX crosses above the zero line, it may confirm a bullish signal. When it crosses below the zero line, it may confirm a bearish signal.

TRIX includes this customizable input:

• Length: The number of bars used to calculate the indicator

Here’s how TRIX is calculated:

• TRIX = (EMA3_i - EMA3_i-1) / EMA3_i-1
• EMA3_i = EMA [EMA2_i (EMA1_i)]

Where: i = the current price

A triple exponential moving average (TEMA) reacts to price changes faster than a traditional SMA or EMA. With multiple EMAs, this indicator produces a smooth line and reduces lag by placing more weight on recent values.

A TEMA reduces lag even more than a double exponential moving average (DEMA). But like a DEMA, a TEMA may confirm a bullish trend when an asset’s price is above the TEMA and the TEMA is rising. Similarly, if an asset’s price is below the TEMA, it may confirm a bearish trend. Also like a DEMA, a TEMA may be helpful for traders executing shorter-term strategies because it is more reactive to recent data than traditional moving averages.

TEMA includes these customizable inputs:

• Length: The number of bars used to calculate the indicator
• Displace: The number of bars the indicator will be shifted to

Here’s how TEMA is calculated:

• TEMA = 3 x EMA - 3 x EMA(EMA) + EMA(EMA(EMA))

True strength index (TSI) indicator helps traders gauge the strength and direction of a trend, mainly by highlighting possible shifts in momentum. It’s calculated using two moving averages of price changes (one short-term one long-term), which are then smoothed. This creates a zero line (or signal line) with which TSI will oscillate between, with values ranging from (-)40 and (+)40.

When TSI is above the zero line it may indicate bullish momentum. When it’s below the zero line, it may indicate bearish momentum. A cross in the zero line may indicate a possible trend reversal. Furthermore, extreme high and low values beyond (-)25 and (+)25 may indicate an asset is overextended in one direction.

Here’s how TSI is calculated:

• TSI = 100 x EMA_s2(EMA_s1(PM)) / (EMA_s2(EMA_s1(|PM|))
  • EMA – Exponential Moving Average
  • PM – Price_i - Price_i-1
  • |PM| – Absolute value of PM
  • EMA_s1 – the long period EMA
  • EMA_s2 – the short period EMA

TSI uses a smoothing process which can cause it to lag behind price movement, making it best used in combination with other indicators.

The Ultimate Oscillator measures momentum across multiple timeframes to help traders identify potential overbought or oversold conditions. It does this by showing price momentum based on the weighted average of three different time frames (7-period, 14-period, and 28-period), placing greater weight on the short term. The calculation then generates a value between 0 and 100 used to interpret certain market conditions of an asset.

Values above 50 generally indicate bullish momentum and suggest an uptrend, while values below 50 indicate bearish momentum and suggest a downtrend. The Ultimate Oscillator also suggests overbought and oversold conditions. Values above 70 can be considered overbought, implying a potential reversal or pullback, while values below 30 can be considered oversold, suggesting a possible upward reversal.

Here’s how the ultimate oscillator is calculated:

• UO = 100 x [((4 x Avg₇ ) + (2 x Avg₁₄ ) + Avg₂₈)] / (4 + 2 + 1)

While the Ultimate Oscillator can help to reduce noise, it can still produce false signals in volatile markets, making it best used in combination with other indicators.

Volume-weighted average price (VWAP) shows the average price over a time period, adjusting for volume. Periods with higher trading volume will impact VWAP more than periods with lower trading volume.

Analysts generally consider an asset undervalued if the price is below VWAP, and overvalued if the price is above VWAP.

Here’s how it’s calculated:

• VWAP = Cumulative Typical Price x Volume/Cumulative Volume

Where:

• Typical Price (TP) = (High price + Low price + Closing Price) / 3
• Cumulative – total since the trading session opened

A weighted moving average (WMA) is similar to a simple moving average (SMA)—but it follows prices more closely by putting more weight on recent data and less on past data. This may be helpful for traders executing a shorter-term strategy.

Here’s how WMA is calculated:

• WMA = [Price1 x n + Price2 x (n - 1) + ... Pricen ] / [n x (n + 1) / 2]

Where:

• n = the time period

WMA includes these customizable inputs:

• Length: The number of bars used to calculate the indicator.
• Displace: The number of bars the indicator will be shifted to.

A weighted moving average envelope (WMA envelope) plots two WMAs as upper and lower bands. The bands may represent overbought (upper band) and oversold (lower band) levels. They can be shifted up and down by fixed percentage value.

The WMA follows prices more closely than a simple moving average because it puts more weight on recent data and less on past data. This may be helpful for traders executing a shorter-term strategy. When the price is near the upper band, it may indicate an uptrend, while a price near the lower band may signal a downtrend. When the price consistently touches or moves beyond the upper band, it indicates an asset may be overbought (which means there’s potential for a price reversal). And when the price consistently touches or moves beyond the lower band, it indicates an asset may be oversold (which means there’s potential for an upward correction).

WMA envelope includes these customizable inputs:

• Length: The number of bars used to calculate the indicator
• Displace: The number of bars the indicator will be shifted to
• Percent below: The percentage the indicator will be shifted down to create the lower band
• Percent above: The percentage the indicator will be shifted to create the upper band

The Williams Alligator indicator uses 3 smoothed simple moving averages (SMAs) set at different periods to help traders spot trends:

• Jaw: 5-period SMA
• Teeth: 8-period SMA
• Lips: 13-period SMA

It generates trading signals based on the convergence/divergence relationship of the Jaw, Teeth, and Lips. The Jaw SMA makes the slowest turns, while the Lips SMA makes the fastest turns.

When the Lips cross down through the other lines, it may signal a short sale opportunity. When the Lips cross up, it may signal a buying opportunity. The downward cross means “the alligator is sleeping,” while the upward cross means “the alligator is waking.”

When each of the 3 SMAs is stretched apart and trending higher or lower, it signals that traders may want to maintain their long or short positions. This is described as “the alligator eating with its mouth wide open.”

When each of the 3 SMAs converge into narrow bands and shift toward a horizontal direction, it signals that the trend may be ending. Or in other words, “the alligator is sated.”

Here’s how it’s calculated:

• SMA
  • Sum1 = Sum (Close, N)
  • SMMA1 = SUM1 / N
• Subsequent values
• PrevSum = SMMA(i-1) * N
• SMMA(i) = (PrevSum - SMMA(i-1) + Close(i) / N

Where:

• Sum1: The sum of closing prices for N periods
• PrevSum: Smoothed sum of the previous bar
• SMMA1: Smoothed moving average of the first bar
• SMMA(i): Smoothed moving average of the current bar (except for the first one)
• Close(i): Current closing price
• N: Smoothing period

One drawback to the Williams Alligator indicator is that if the market is choppy (or “sideways”), the 3 SMAs may intersect repeatedly, generating false positives.

Zig zag helps traders filter out minor price fluctuations by plotting straight lines across a chart, connecting high and low points. The lines appear as zig-zags. Zig zag helps traders confirm asset’s overall price direction and spot trend reversals.

It’s calculated based on a percentage threshold (often 5%). Price changes below this percentage are ignored, and the indicator adjusts when the asset price changes exceed the threshold.

As a lagging indicator, Zig Zag is generally best used in combination with other indicators.

All investments involve risk and loss of principal is possible.

Robinhood doesn’t endorse or adopt any particular investment strategy or approach to evaluating individual securities or assets. Robinhood Legend use is for informational purposes only and is not a recommendation of any security, investing or trading strategy.Some of the capabilities of Robinhood Legend may be different or absent from what is offered via the Robinhood mobile app or Robinhood classic. Please be sure to understand these differences and what might work best for you.

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