As a day trader, you should always use a stop-loss order on your trades. Barring slippage, the stop-loss lets you know how much you stand to lose on a given trade.1 Once you start using stop-loss orders, you'll need to learn how to calculate your stop-loss and determine exactly wh...
It was designed to allow traders to more accurately calculate an investment's regular movement through basic calculations. The metric does not signify price trends, instead, it is used to quantify uncertainty created by differences and to restrict up or down movements. The ATR is a simple calcula...
respectively. In our case, we are checking the following condition: if the analyzed bar corresponds to the new day, we begin to calculate maximal and minimal price values again, otherwise we continue. We are calculating the values for each indicator line: for the upper line - we ...
The Keltner Channel was first introduced by Chester Keltner in the 1960s. The original formula used simple moving averages (SMAs) and the high/low price range to calculate the bands. In the 1980s, a new formula was introduced that used the Average True Range (ATR). The ATR method is co...
It combines the average true range (ATR) with a multiplier to calculate its value. This value is then added to or subtracted from the asset’s closing price to plot the supertrend line. When the supertrend line moves below price, it's often considered a buy signal, and when it moves abo...
To calculate the average directional index (ADX), you should find the values of the DX for all 14 periods. The first ADX equals the sum of the 14 periods of DX, divided by 14. For the rest, use the following formula: ADX = ((prior ADX * 13) + current DX) / 14. ...
So I want to calculate the lag 1 Autocorrelation over a lookback window and see if the AC structure changes at all over time. We have a post geared towards beginners on how windowing works, check it outhere history['rolling_lag_1']= history['returns'].rolling(window=100).apply(lambdax...