Technical Indicators Explained
One page per indicator: origin and definition, the formula, a worked example, how to read the scale, common signals, pitfalls, the MT5 function and parameters, and FAQ. Educational content only — not investment advice.
RSI is one of the most widely used momentum oscillators: it compresses the balance of buying vs. selling pressure over a lookback window into a single 0–100 reading, helping you spot when a market has moved "too far, too fast".
MACD measures trend direction and momentum through the gap between two EMAs of different speeds — the classic trend-momentum oscillator.
The Moving Average is the bedrock of technical analysis: it averages the last N closes into one line that filters noise and reveals the true direction of the trend.
Bollinger Bands draw a dynamic channel at "MA ± 2 standard deviations": the band widens and squeezes with volatility, and price spends most of its time inside.
The Stochastic Oscillator answers one concrete question: where does the current close sit inside the recent high-low range? Closes near the top = buyers in control; near the bottom = sellers.
ADX does not care about direction — only trend strength: higher readings mean a stronger trend, lower readings mean chop. It is the referee that decides whether to use trend tools or range tools.
ATR does not predict direction — it measures "how far this market can move in a day", turning stop distances, position sizes and targets from guesswork into arithmetic.
The Ichimoku system packs trend, support/resistance, momentum and signals into one chart: five lines and a cloud — "a glance" (Ichimoku) tells you everything.
The Force Index is one of the few momentum tools that includes volume: direction × magnitude × volume — it measures the real thrust behind every move.
CCI measures how far price has strayed from its statistical norm: beyond ±100 is "abnormal" — it works as both a breakout and an overbought/oversold tool, two faces of one indicator.
The Momentum indicator is the plainest measure of momentum: today's price versus N periods ago — whatever changed is the momentum, with no smoothing or decoration.
Williams %R shares DNA with the Stochastic: it measures where the close sits in the recent high-low range — but with readings hanging upside-down between −100 and 0, speaking in −20/−80 extremes.
The DeMarker cares about one thing only: did today's high/low make a new high/low versus yesterday — it gauges buyer and seller "attempts" to spot exhaustion or buildup.
OsMA is MACD's histogram formalized as its own indicator: the gap between the MACD line and its signal — it isolates the acceleration/deceleration layer of momentum.
Parabolic SAR scatters a trailing stop-dot field around price: dots below = a bull guard, dots above = a bear guard — the flip is the signal.
The Alligator turns three moving averages into a metaphorical beast: the order in which lips/teeth/jaw open is the rhythm of a trend from birth to full stride.
Fractals mark every local extreme on the chart: the highest bar of a five-bar window gets an arrow — these are natural swing highs/lows, the atoms of structure and breakout triggers.
The Awesome Oscillator measures momentum via fast-vs-slow median-price averages: green bars = momentum building, red = fading — saucers, twin peaks and zero crosses are its three classic signals.
The Relative Vigor Index divides net displacement by the day's full range: a rally that closes barely above its open has hollow vigor — RVI exposes exactly that fake strength.
Envelopes are the plainest channel tool: a moving average ± a fixed percentage — a poke outside the band means "statistically abnormal", and the reversion-vs-breakout duality begins.
AMA is the moving average that shifts its own gears: crawling through ranges (noise-proof) and accelerating automatically when a trend appears — the efficiency ratio is its throttle.
TRIX smooths the average three times, then takes its rate of change: noise is ground away threefold, leaving zero-line crosses that are almost purely "real trend" — momentum built to kill jitter.
Elder's twin-power indicators split "how high buyers can push" and "how low sellers can slam" into two histograms: paired with EMA13, they read the real thrust of both sides of the fight.
The Gator turns the Alligator's mouth-open state into a histogram: the two bars measure the Lips−Teeth and Teeth−Jaw distances — open/closed becomes countable instead of eyeballed.
BW MFI measures how much price one unit of volume moved: volatility and volume combine into four colored states — Green/Fade/Fake/Squat — reading the quality of participation directly.
StdDev is the mathematical source of volatility: the average dispersion of price around its mean — the width inside Bollinger Bands, ATR's sibling, the base ruler for every "volatility state" read.
A/D allocates each day's volume by where the close landed in the range: closes near the high book as accumulation, near the low as distribution — the ledger of money flow.
OBV is the oldest money-flow tool: volume adds on up-closes, subtracts on down-closes, zero on flats — one cumulative line drawing the direction of volume as a leading shadow of price.
MFI is "RSI with volume": the same 0–100 scale and 80/20 extremes, but every up and down is weighted by real money — an oscillator that sees both price and volume.
Volume is the raw material of all volume-price analysis: read the volume itself first — what expansion means, what shrinkage means, and the tick-vs-real convention gap.