Description
This article is from the Glossary of
Technical Analysis Terms.
Glossary of Technical Analysis Terms: A
- Alpha-Beta Trend Channel:
The Alpha-Beta Trend Channel study uses the standard deviation of
price variation to
establish two trend lines, one above and one below the moving
average of a price field. This creates a channel (band) where the
great majority of price field values.will occur.
- Arms Ease of Movement:
Developed by Richard W. Arms, Jr., this analysis routine expands on
Mr. Arms'
Equivolume charting tool by quantifying the shape aspects of the
plotted boxes. The purpose of this quantifying is to determine the
ease, or lack thereof, with which a particular issue is able to
move in one direction or another. The ease with which an issue
moves is a product of a ratio between the height (trading range)
and width (volume) of the plotted box. In general, a higher ratio
results from a wider box and indicates difficulty of movement. A
lower ratio results from a narrower box and indicates easier
movement. This ratio is then related to a comparison between
today's and yesterday's trading-range midpoint values to determine
the ease of movement value (EMV). A moving average is then applied
to the EMV value - the moving average period can be varied in
order to make the EMV flexible as a trading tool.
- Average True Range:
True range is the greatest of the following differences:
- Today's high to today's low
- Today's high to yesterday's close
- Today's low to yesterday's close
The range is normally the "high - low". However, any time the value
of
yesterday's close is not within the range of today's bar, rule b)
or rule c) applies. As with most other indicators, the periodic
value is summed and smoothed to create the final
indicator.
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