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How to access the studies in MotiveWave:
Go to the top menu, choose Study>Study Group>Study Name
or Go to the top menu, choose Study>All Studies> Start typing in the study name until you see it appear in the list> Click on the study name> Click OK.
The Absolute Price Oscillator (APO) plots the difference between two moving averages as a real value. The user may change the input (close), method (SMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Absolute Price Oscillator
No trading signals are calculated for this indicator.
Calculation
//input = price, user defined, default is Midpoint //method = moving average (ma), user defined, default is SMA //period = user defined, default is 10 //period2 = user defined, default is 30 //index = current bar number
Acceleration Bands were developed by Price Headley. These bands serve as a trading envelope using an instrument’s typical volatility over a standard setting of 20 bars. The user may change the input (close), period length, and multiplier factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using the Acceleration Bands
No trading signals are calculated for this indicator.
//input = price, user defined, default is close //period = user defined, default is 20 //factor = user defined, default is .001 //sma = simple moving average
The Accumulation/Distribution Line improves on the On Balance Volume indicator by focusing on the range of a bar vs its closing price, instead of using its previous close. Volume is added to the total when the close is above the midpoint for the bar and subtracted when below. No user input is required for this indicator. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Click here for more information.
See also OnBalance Volume Indicator
How To Trade Using the Accumulation/Distribution Line
No trading signals are calculated for this indicator
//index = current bar number
An improvement of the Average Directional Index (ADX), the Accumulative Swing Index (ASI) was created by J.Welles Wilder in 1978. The ASI is mostly used for futures trading predictions, where it measures the strength and direction of the security’s price. It follows the candlestick chart's price movements, plotting a cumulative sum of the Swing Index (SI) values for each candle. Compared to SI, which shows a short-term trend indicator, the ASI provides better predictions in the long term.
This index is calculated using its high and low prices at opening and closing times: ASI = preciousASI + currentSI;
where: SI = 50×(C-Cy + 0.5x(C-O) + 0.25×(Cy-Oy))/R.
C = current close price, Cy = previous close price,
O = current open price, Oy = previous open price,
R = the highest range value, selected from the subtraction of the current high/low prices and the current/previous closing prices
How to trade using ASI
No trading signals are calculated for this indicator. However, when the ASI moves above the 0 line ( ASI is positive), it signals a potential buy trend. Conversely, when the ASI drops below the 0 line (ASI is negative), it suggests an opportunity for a sell trend. In case the ASI approaches closely to the 0 line, the market might be in an uncertain condition and the ASI should be used in conjunction with other indicators.
Building on his Awesome Oscillator, Bill Williams authored the Acceleration Oscillator (ACO). The ACO measures the acceleration and deceleration of the current driving force. This indicator will change direction before any changes in the driving force, which, if it turns, will change its direction before the price. The ACO is the difference between the Awesome Oscillator and its 5-period SMA. The user may change input (midpoint), method (SMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Acceleration Oscillator
No trading signals are calculated for this indicator.
//input = price, user defined, default is Midpoint //method = moving average (ma), user defined, default is SMA //slowPeriod = user defined, default is 34 //fastPeriod = user defined, default is 5 //accelPeriod = user defined, default is 5 //index = current bar number
The Accelerator Decelerator Oscillator by Bill Williams manipulates multiple moving averages of the midpoint price and displays the result with movable guides on a bi-color histogram. The user may change the input (midpoint), method (SMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Accelerator Decelerator Oscillator
Adjust the top and bottom guides to control the quantity and quality of the trading signals. If the ado peaks above the top guide a sell signal will be generated. Conversely, if the ado troughs below the bottom guide a buy signal will be given.
Calculation
//input = price, user defined, default is midpoint price //method = user defined, default is SMA //period1 = user defined, default = 5 //period2 = user defined, default = 34 //period3 = user defined, default = 5 //ma = moving average, index = current bar number //MT = more than, LT = less than
The Adaptive Smoothing Indicator, or Tilson T3, combines a series of moving averages with a user-defined volume factor. The user may change the input (close), method (EMA), period length and factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
The Adaptive Smoothing Indicator or Tilson T3 may be used in conjunction with other indicators as a trend indicator. No trading signals are given.
//input = price, user defined, default is closing price //period = user input, default 40 //volFac = volume factor, user defined, default .5 //ema = expotintial moving average //index = current bar number
AggZ was authored by David Varadi. It combines trend-following measures for long-term forecasting and mean-reversion for short-term trends.
The formula for calculating this indicator is as follows:
AggZ= (-1x( 10-day Zscore)+(200-day Zscore))/2;
where Zscore = (close-sma (closing prices over last n periods))/(standard deviation(closing prices over last n periods)).
Click here for more information.
How to trade using AggZ
A buy signal is generated when the price rises above 0. Conversely, a sell signal is given when the price drops below 0.
The Alligator was authored by Bill Williams. It is a combination of balance lines (Moving Averages) that use fractal geometry and non-linear dynamics. They consist of 3 lines: Jaw, Teeth and Lips. Typically a smoothed moving average (SMMA) is used with periods/shifts of (13/8, 8/5, 5/3) for the lines respectively. The user may change input (midpoint), method (SMMA), period and shift lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Alligator
No trading signals are calculated for this indicator.
//input = price, user defined, default is Midpoint //method = moving average (ma), user defined, default is SMMA //jawPeriod = user defined, default is 13 //jawShift = user defined, default is 8 //teethPeriod = user defined, default is 8 //teethShift = user defined, default is 5 //lipsPeriod = user defined, default is 5 //lipsShift = user defined, default is 3 //index = current bar number
The Aroon was authored by Tushar Chande in 1995. Aroon may be used to determine if an instrument is trending and how strong the trend is. The indicator system consists of two lines Aroon(up) and Aroon(down). The user may change the period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Aroon
No trading signals are calculated for this indicator
//period = user defined, default = 25 //MOE = more or equal, LOE = less or equal //index = current bar number
The Aroon Oscillator is a variant of the Aroon study that combines the two lines: Aroon(up) with Aroon(down) by subtracting them (up-down) to produce a single line that oscillates between -100 and 100. The user may change the period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
No trading signals are calculated for this indicator
//period = user defined, default = 25 //MOE = more or equal, LOE = less or equal //index = current bar number
The ATR Channel plots an upper and lower channel based on the close, plus or minus, the Average True Range times a user-defined factor. The user may change the period length, shift number and multiplier factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
No trading signals are calculated for this indicator.
//period = user defined, default is 14 //shift = user defined, default is 0 //multiplier = user defined, default is 2.5 //sma = simple moving average //LT = less than
ATR Trailing Stops (ATRTS) identifies exit points for long and short positions. First, an exponential moving average (EMA) of the input is taken to determine the current trend. Then, the Average True Range (ATR) is calculated and multiplied by a user-defined factor. If the EMA is increasing (uptrend), the ATR product is subtracted from the price or, if the EMA is decreasing (downtrend), it is added to the price, and along with a few details the ATRTS is formed. The user may change the position (long), input (close), method (EMA), period lengths, percent factor and show entry option(see trading signals below). This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using ATR Trailing Stops
ATR Trailing Stops are designed to aid in exit decisions. For long positions, if the price is less than the ATRTS a sell signal is generated. Conversely for short positions, if the price is more than the ATRTS a buy-to-cover signal will be given. The user may also choose to show entry signals, however they should only be used with a trend filter.
Calculation
//position = pos, user defined, default is long //input = price, user defined, default is close //method = moving average (ma), user defined, default is EMA //period1 = maP, user defined, default is 63 //period2 = artP, user defined, default is 21 //factor = fac, user defined, default is 3 //show entrys = showE, user defined, default is false //index = current bar number, prev = previous //LOE = less or equal, MOE = more or equal //shortP = short position, longP = long position //index = current bar number
The Auto Trend Line automatically draws trend lines based on swing high and swing low points. Swing points are determined as the highest high (or lowest low) over the range (index – high_period, index + high_period). Trend lines are drawn by connecting two consecutive points that have a positive slope for low points and a negative slope for high points. The user may change the period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Auto Trend Line
No trading signals are calculated for this indicator.
//period1 = user defined, default is 8 //period2 = user defined, default is 8 //period3 = user defined, default is 20 //multiple lines = user defined, default is true //historical lines = user defined, default is false
The Average Directional Index (ADX) was authored by J. Welles Wilder in 1978. ADX is an indicator of trend strength in a series of prices. It is composed of two other indicators, the positive directional indicator (+DI) and the negative directional indicator (-DI). The ADX combines and smooths these indicators. The user may change only the period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
The Average Directional Index (ADX) may be used in conjunction with other studies. No signals are calculated for this indicator.
//period = user defined, default is 14 //index = current bar number //smma = smoothed moving average //abs = absolute value
The Average True Range (ATR) is a popular volatility indicator and it was authored by Welles Wilder in 1978. It computes the average price range over a specific period (high – low extending to the previous bars close). Though the ATR is typically calculated using 14-day period, users can change the period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Average True Range is used to identify market volatility for market conditions and risk management. A high value of ATR suggests high volatility, which shows that the prices are moving quickly. Meanwhile, a low ATR value indicates low volatility, and therefore, a steady market condition.
Sudden changes in the ATR can also provide insights into potential breakouts or reversals. A spike in ATR value might indicate price breakouts while a consistently low ATR might imply a potential reversal.
The ATR is not a trend indicator because it is not directional and should be used in conjunction with other studies. No signals are calculated for this indicator.
//period = user defined, default is 14 //index = current bar number /prev = previous, abs = absolute value
The Awesome Oscillator (AO) was authored by Bill Williams. This oscillator subtracts a 34 period simple moving average (SMA) from a 5 period SMA. It illustrates what’s happening to the market driving force at the present moment. The AO is displayed as a bi-colored histogram. The user may change the input (midpoint), method (SMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Awesome Oscillator
No trading signals are calculated for this indicator.
Calculation
//input =price, user defined, default is midpoint //method = moving average (ma), user defined, default is SMA //slowPeriod = user defined, default is 34 //fastPeriod = user defined, default is 5 //index = current bar number
Bears Power was authored by Alexander Elder. Bears Power is the difference between the current low and the 13-period exponential moving average. The user may change the input (midpoint), method (EMA) and period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
No trading signals are calculated for this indicator.
//input = price, user defined, default is Midpoint //method = moving average (ma), user defined, default is EMA //period = user defined, default is 10 //index = current bar number
Better Volume combines bid/ask volume and range to identify volume climax, high volume churn and low volume bars. The user may change the period lengths, show the all points option and show the labels option. This indicator’s definition is further expressed in the code given in the calculation below.
Better Volume may be used in conjuction with other studys. No trading signals are given for this indicator.
//Look Back = user defined, default is 20 //Average Period = user defined, default is 100 //Use 2 Bars = user selection, default is true //Paint Price Bars = user selection, default is true
Bid/Ask Spread displays the bid and ask prices as two separate lines that visually represent the spread between the two. The user may change the input (open, close, high, low). This indicator’s definition is further expressed in the code given in the calculation below.
No trading signals are calculated for this indicator.
//input = price, user defined, default is close //index = current bar number
Displays the Bid Volume vs the Ask Volume on a separate plot. Optionally, up/down markers can be displayed where the ask volume crosses the bid volume. Signals are generated where these markers occur and may be used to send emails or popup alerts.
For details on how to use this study, see our Volume and Order Flow Analysis Guide.
The Big Trades indicator provides notable market movements by monitoring significant buy or sell orders. These large trades are usually created by major market investors or institutional traders. In the chart, the sizes of the signals (circles) are varied based on the volumes of the orders. The indicator will display past trades that meet or exceed a chosen minimum size. If the aggregate is enabled, MotiveWave will combine multiple trades that occur at the same price and within a time period, into bigger trades.
How to trade using Big Trades
If there is a steady accumulation of large buy orders, traders might expect a potential upward trend (breakout). Conversely, an accumulation of large sell orders might signal a possible downward trend (breakdown).
Bollinger Bands® is a popular tool developed by John Bollinger in the 1980s. Bollinger Bands® can be used to measure the high or low price relative to previous trades, therefore, providing insights into market volatility, price trends, overbought/oversold conditions and potential reversals.
There are three components in a Bollinger Bands chart. The user may change the input (close), period lengths, shift and standard deviation factors. The center line is typically a 20-period Simple Moving Average (SMA) that signifies trend movement. The Upper and Lower Bands (Top and Bottom Period in MotiveWave) are plotted by adding or subtracting two standard deviations from the middle band (Top and Bottom Std Dev - commonly set at 2). These two bands demonstrate the volatility levels and possible overbought/oversold conditions.
Click here for more information.
The Bollinger Bands® is used to gauge trend movement, by examining the middle band. An upward middle band implies an uptrend while a downward middle line indicates the price is decreasing.
The width between the Upper and Lower Bands demonstrates the market's volatility. If the bands' distance is wide, it suggests high volatility and the price is moving dramatically. A higher volatility means higher risks, therefore, traders should be careful in decision-making. Conversely, if the two bands come close together, it is called a "squeeze" and it indicates low volatility and the price has been more steady but this might be a sign of consolidation. When the market is less volatile, traders should consider entering the trade, since a breakout in price might happen.
The Upper and Lower Bands can also act as overbought and oversold thresholds. When the price reaches the Upper Band, it implies an overbought condition and traders should consider selling. In contrast, when the price drops under the lower band, it suggests an oversold condition and a signal to buy. The events of the price touching the Upper or Lower Band might signify potential reversals and breakouts. If the price bounces off but stays around the Upper or Lower Band, it can signal a potential bearish or bullish reversal. If the price breaks through the Upper or Lower Band and keeps its direction, it suggests a breakout, and a new trend might occur.
The Bollinger Bands® might be used in conjunction with other analyses, such as RSI or MACD for signal validation.
This indicator’s definition is further expressed in the code given in the calculation below:
//input = price, user defined, default is close //Top Period = user defined, default is 20 //Bottom Period = user defined, default is 20 //Shift = user selection, default is 0 //Standard Deviation Top = factor, user defined, default is 2 //Standard Deviation Bottom = factor, user defined, default is 2 //LT = less than, MT = more than //LOR= less or equal, MOR= more or equal
Bollinger Bands® was authored by John Bollinger in the 1980s. The Percent B (PB) plots the instrument’s price relative to the upper and lower Bollinger Bands®. The PB can be used to identify overbought and oversold conditions. The user may change the input (close), period length and standard deviation factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Click here for more information about Bollinger Bands.
No trading signals are calculated for this indicator.
//input = price, user defined, default is close //period = user defined, default is 20 //stdDev = standard deviation factor, user defined, default is 2 //sma = simple moving average, index = current bar number
From his Standard Error Bands, the Bollinger Bands® ATR, was authored by Jon Anderson in Stocks and Commodities Mag. 09/1996. This indicator uses the quotient of the Average True Range, and Bollinger Bands® difference, to plot its path. The user may change the input (close), period lengths and Standard Deviation factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Bollinger Bands® ATR may be used in conjunction with other indicators. No trading signals are given.
//input = price user defined, default is close //atrPeriod = user defined, default is 22 //bPeriod = user defined, default is 55 //noStd = number of standard deviations = user defined, default is 2 //atr = average true range, bb = bollinger bands //top= bb[0], bottom=bb[1] //index = current bar number
Bollinger Bands® Fibonacci Ratios are based on the same principles as the standard Bollinger Bands®. The baseline is a simple moving average. Bands are calculated using Welles Wilders smoothed average true range (ATR). Each band is a Fibonacci ratio of the ATR away from the baseline. The user may change the input (close), period length and Fibonacci ratios. This indicator’s definition is further expressed in the condensed code given in the calculation below. See also Fibonacci Number.
No trading signals are calculated for this indicator.
//input = price, user defined, default is close //period = user defined, default is 20 //fibRatio1 = fibonacci ratio1, default is 1.618 //fibRatio2 = fibonacci ratio2, default is 2.618 //fibRatio3 = fibonacci ratio3, default is 4.236 //smma = smoothed simple moving average //sma = simple moving average //index = current bar number
Bollinger Bands® was authored by John Bollinger in the 1980s. The Bollinger Band Width (BBW) plots the distance between the upper and lower Bollinger Bands®. This graph line represents the contraction and expansion of the bands based on recent volatility. A high BB width often indicates a slowing trend, while a low width indicates a forming trend. The user may change the input (close), period length and standard deviation factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Click here for more information about Bollinger Bands.
How To Trade Using Bollinger Band Width
No trading signals are calculated for this indicator.
Calculation
//input = price, user defined, default is close //period = user defined, default is 20 //stdDev = standard deviation factor, user defined, default is 2 //std = standard deviation //index = current bar number
Buff Averages by Buff Dormeier displays two moving averages based on price and volume. When the two averages cross trading signals are given. The user may change the input (close) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Buff Averages
Trading signals are generated when the fastBuff and the slowBuff cross. If the fastBuff crosses above (upward movement) a buy signal is generated. Conversely, if the fastBuff crosses below (downward movement) a sell signal is given.
Calculation
//input = price (user defined, default is close) //fastPeriod = user defined, default = 5 //slowPeriod = user defined, default = 20 //num = numerator //den = denomator, index = current bar number
Bulls Power was authored by Alexander Elder. Bulls Power is the difference between the current high and the 13-period exponential moving average. The user may change the input (midpoint), method (EMA) and period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Bulls Power
No trading signals are calculated for this indicator.
Calculation
//input = price, user defined, default is Midpoint //method = moving average (ma), user defined, default is EMA //period = user defined, default is 10 //index = current bar number
