Adding Indicators

An indicator is the result of a mathematical formula that is applied to price and/or volume data, which provides an output that can be graphically represented.  Indicators are used to demonstrate market characteristics such as sentiment, volatility and trends.

To add an indicator, open the Add Study dialog.  This can be found by clicking the Add Study button on the chart tool bar, or simply right-clicking on the chart and selecting Add Study.

Follow these steps, and refer to the image below:

Step 1: Select the appropriate tab for the type of study you want to add.  In this case we're adding an Exponential Moving Average (EMA) indicator, so we click the Indicators tab.

Step 2: Choose the indicator you wish to add to your chart.

Step 3: Enter any required arguments on the right hand side of the window.  We'll put 10, for a 10-day moving average.

Step 4: Select which section of the chart you would like to add the indicator to.  If you wanted it in its own section, you would choose New Section.  As this is a moving average, we want to see it overlaid on the stock, so we'll put it to the main chart section - Section 1.

Step 5: Click Next to change the colour properties if the indicator.  If you don't need to change the colours, just click OK.

You may find that some indicators cannot be placed on the chart section (Section 1).  This is usually because the difference in values between the price of the symbol and the values the indicator uses would make the chart unreadable.

History: The section you see in the image above labeled 'History' will tell list the previous settings you've used for this indicator. The history section has no effect what-so-ever, on the current settings in the arguments section.

Smoothing: The section on smoothing is their if you want to add extra smoothing to an indicator. If you were to add smoothing to the exponential moving average we just added, the result would be a moving average of a moving average.

For information on changing or removing studies after they've been added to a chart, see the Graph Explorer section.


Related Topics:
Add Study
Graph Explorer
Charting Tools
Customising the Software