Technical Indicators

1. Williams %R

• This is basically a momentum indicator.
• The value of the indicator oscillates between 0 and -100.
• %R reading above -50 means the price is moving upward. A reading near -100 means oversold levels.

2.  MACD

• The MACD displays a MACD line (blue), signal line (red) and a histogram (green) - showing the difference between the MACD line and the signal line.

• When the MACD line crosses ABOVE the zero line, this signals an UPTREND
• When the MACD line crosses BELOW the zero line, this signals an DOWNTREND

• When the MACD line crosses ABOVE the signal line, traders use this as a BUY indication
• When the MACD line crosses BELOW the signal line, traders use this as a SELL indication

• When the MACD line is above the signal line, then the histogram will be positive. 
• The opposite is true when the MACD line sits below the signal, whereby the histogram will plot below the zero as a negative value.

3. Stochastic Indicator

The stochastic oscillator has 2 lines (%k) and (%d). 

%K = (C-L5close)/(H5-L5) * 100

%D = 3-day SMA of %K.

where,

C = the most recent closing price.

L5 = the low of the five previous trading sessions.

H5 = the highest price recorded within the same 5-day period.

However, the period can be changed.

The 2 lines cross each other and we consider this as the buy/sell signal. 

We call the %k line crossing the %d line above as the buy signal. Whereas we call the %k crossing the %d line below as the sell signal.

The traders consider a stochastics value close to 0 as oversold, i.e, market is enough sold and can bounce back any time. Whereas they consider the stochastics value close to 100 as overbought, i.e, the market is enough bought and can take a correction any time.