Moving average indicators are commonly tracked by technical stock analysts. A multi-faceted indicator created to give support/resistance levels, trend direction, and entry/exit points of varying strengths.
The system does include signals but these should never be considered in isolation. The Relative Strength Index (RSI) is a highly popular technical indicator. The Ichimoku components are introduced in a specific order because that is how you should analyze or trade the market. When the price is trending to the upside, the dots are below the price action and when the price is trending to the downside, the dots are above the price action. The cloud produces better levels of support and resistance and is a breakout trader's best friend. The opposite is the case when the RSI line is heading lower. Meritage Portfolio Management bought a new stake in shares of iShares Russell 2000 Value ETF during the fourth quarter worth approximately $201,000. A value of 25-50 would indicate a strong trend. The Williams Percent Range or Williams %R is a technical indicator that was created to measure overbought and oversold market conditions. A reading between -80 to -100 may be typically viewed as strong oversold territory. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. Then the "price" is smoothed using a mofidied Wilders' smoothing algorithm. The Williams %R oscillates in a range from 0 to -100. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. As a general observance, the more overbought or oversold the reading displays, the more likely a reversal may take place.
Tracking other technical indicators, the 14-day RSI is presently standing at 55.10, the 7-day sits at 55.21, and the 3-day is resting at 66.28 for Sasol Ltd (SSL).
At the time of writing, Russell Mid-Cap Ishares ETF (IWR) has a 14-day Commodity Channel Index (CCI) of -47.64. As a momentum oscillator, the RSI operates in a set range. A value between 0 to -20 would represent a strong overbought condition. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. Moving average indicators are used widely for stock analysis. Moving averages can be very useful for identifying peaks and troughs. A common look back period is 14 days.