ⓘ How IndicatorWatch Works
IndicatorWatch helps you analyze market trends for stocks and cryptocurrencies using technical indicators, primarily focusing on Moving Averages (MA).
Key Concepts:
- Moving Average (MA): This is the average price of a security over a specific period (e.g., 20 days). It helps smooth out price data to identify the direction of the trend. You can choose between SMA, EMA, WMA, or TMA types.
- Difference (Price vs. MA): This value shows the gap between the current market price and its calculated Moving Average.
- A positive difference (price above MA) generally indicates a bullish (upward) trend.
- A negative difference (price below MA) generally indicates a bearish (downward) trend.
- The larger the absolute gap, the potentially stronger the current trend might be relative to its MA.
- Days Since Trend Reversal: This metric counts how many consecutive days the current trend (bullish or bearish, based on price vs. MA) has been active since it last crossed over the Moving Average.
- Low numbers (e.g., 0-9 days) can indicate a newly forming trend, potentially offering early entry opportunities.
- Higher numbers suggest a more established trend.
By configuring the index/ticker, MA period, and MA type in the "Analysis Configuration" section, you can tailor the analysis to your strategy. The results will show "Bullish Tickers" (price above MA) and "Bearish Tickers" (price below MA).
Remember, technical analysis is just one tool. Always combine it with fundamental analysis and consider your risk tolerance before making investment decisions.
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