So that I don't have to explain what each indicator is in every post, this page is dedicated to giving a brief explanation of each.
Short-term hold long / short percentage
If the 3 day exponential moving average is above the 7 day simple moving average, this is considered hold long. If it is under, hold short. The sum of each set are added together and then the percent is calculated by dividing each by the total. Using percents instead of raw numbers keeps it accurate as the number of listings expands.
Medium-term hold long / short percentage
If the 8 day exponential moving average is above the 20 day exponential moving average, this is considered hold long. If it is under, hold short. The sum of each set are added together and then the percent is calculated by dividing each by the total. Using percents instead of raw numbers keeps it accurate as the number of listings expands.
Time Segmented Volume (TSV)
A proprietary technical indicator developed by Worden Brothers, Inc. TSV is an oscillator, which is calculated by comparing various time segments of both price and volume. TSV essentially measures the amount of money flowing in or out of a particular stock. The horizontal line in the middle, which extends across the entire length of the indicator window, represents the zero line. When TSV crosses up through the zero line it signals positive accumulation or buying pressure. This action is considered bullish. Conversely, when TSV crosses below the zero line it indicates distribution or selling pressure, which typically precedes a move down in price.
Another important thing to look for when interpreting TSV is a contradiction of trends between price and TSV. Look for positive or negative divergences between price and TSV in order to determine potential tops and bottoms. Several consecutive divergences increase the reliability factor in trying to pinpoint price reversals. For instance, if price has been making successively higher highs while TSV has been making successively lower highs, this would constitute a series of negative divergences. This would be an indication of a possible top.
Moneystream (MS)
The Cumulative MoneyStream (CMS) was also developed by award-winning technician Don Worden and is the exclusive intellectual property of Worden Brothers, Inc. The MoneyStream grew out of joint venture with a large regional brokerage firm to develop a price/volume indicator. The result is an indicator with much the same objectives as OBV. CMS is interpreted in the same way you would interpret OBV. Generally, you look for divergences.
Important divergences can be seen at a glance, owing to our use of automatic linear regression lines in both the price and indicator profiles. The chart is setup so that you can make direct comparisons between the slopes of the price regression lines and the indicator regression lines. (However, do not neglect to look closely for movements not necessarily reflected in the regression line, which is meant as a help, not a crutch.) If the CMS regression lines are sloping upward at greater angles than those of the price, the message is bullish. And vice versa.
The main difference between OBV and CMS is that CMS has a greater ability to contradict price movement than OBV does. This is achieved by using all of the elements within the daily price bar rather than just the close. The high, low, close and daily range are related to volume in a unique and proprietary way. You may wish to compare CMS and OBV in a variety of stocks and time frames. Generally you will find that CMS has the greater predictive power. But not always. Sometimes OBV does the better job. The more things you look at, and the more time frames you habitually check out, the better you are going to do.
McClellan Oscillator Index
The McClellan Oscillator is reported each day by many financial news services. Their reported value will almost always be different than our value because, as mentioned earlier, we use every stock on the NYSE. The overall trend of the indicator, however, will be the same.
The McClellan Oscillator is calculated by subtracting a 39 day moving average of (Advances – Declines) from a 19 day moving average of (Advances – Declines). It not only works as an overbought/oversold indicator, it works fairly well at making short-term trend changes when it crosses the zero line.
McClellan Summation Index
The McClellan Summation Index is simply a cumulative indicator of the McClellan Oscillator. It also can be interpreted as bullish or bearish when it crosses over the zero line. We find crossovers on a 10- or 20-day moving average of this indicator to make for a great trend following system. It tends to get you into trends early and keep you in…very few whipsaws.
Percent of Stocks Trading Outside 1 or 2 Standard Deviation (std) Channels
Percentage of stocks trading 1 or 2 channels above or below their moving averages. The channels are envelope channels. One channel is equal to one standard deviation from the moving average and two channels equals 2 standard deviations from the moving average. Remember that values outside of two standard deviations only occur 5% of the time so this indicates extreme moves.
