ADX – Average Directional Index

ADX, or Average Directional Index, was developed by J. Welles Wilder. It can be used to help measure the overall strength of a trend. The ADX (Average Directional Index) indicator is an average of expanding price range values. Low readings on the ADX (Average Directional Index) show a lack of strong trend in either direction and a higher reading indicates a strong trend in one direction. How to use the ADX? As all secondary indicators, the ADX (Average Directional Index) should be a confirmation of price action in the candlestick charts and trend. This video will show you How To Use the ADX in your trading setups.

CCI – Commodity Channel Index

The Commodity Channel Index (CCI Indicator) was developed in the early 1980’s as a way to measure the strength of an up or downtrend in certain commodities. Over the years, traders have found the CCI indicator works well on all securities (stocks, bonds, currencies, etc) and has practical application in many trading systems. In this session, one of our traders outlines how the CCI works, how to use CCI, what CCI Indicator measures and how to properly use CCI indicator signals it in your trading efforts. At Maverick we love to use the CCI Indicator as a confirmation of a great breakout indicator in our high and low base patterns.

Stochastics

The Stochastics Indicator was developed by George Lane in the late 1950s. The indicator measures the relationship between the closing price and the price range over a predetermined period of time. It is used to indicate “overbought” or “oversold” prices in the underlying stock or instrument. The indicator is comprised of two lines and can signal an accurate buy or sell signal when they cross or change directions. While the stochastic indicator seems a simple technical indicator at first, the stochastics fail all the time and until a trader understands the limitations and failure of stochastics, they are doomed to take a buy/sell signal during these times. The problem with stochastics is not in the indicator itself, but in the application by the trader. The stochastic indicator was built for a very specific purpose and is not an all-time usage indicator.

MACD Divergences

The single most popular indicator in technical analysis for many years was the MACD. While it has many potential uses, one of our favorite is for simple bullish or bearish MACD divergences. We will teach you how to read this leading indicator to be aware when trends are losing energy!

Chaikin Money Flow

This is an advanced technical analysis class on Chaikin Money Flow. This indicator is a volume based indicator designed to identify the strength of a trading move. When a divergence in the money flow occurs with the asset making an overbought/oversold condition then a trading signal is given. In addition, in this class we explore accumulation vs distribution. Where the stock closed in comparison to its high or low. Which gives us an idea of whether the price action was actually strong or weak during that trading session. And much much more.

Advance Decline Line

The advance/decline line is a confirmation indicator. It displays market breadth by showing the total number of advancers vs decliners. This is a cumulative number and as such will trend in both positive and negative territory for extended periods of time.

In this class, we look at the advance decline line today. We compare it to the S&P 500 looking for confirmation or divergences. We teach you now to look up to use this on a free charting platform. We discuss a few examples of divergences which have been a great help to us as both short-term and long-term signals!