The Average Directional Index (ADX) is a technical indicator that can be used to determine if the market moves up or down. The ADX in combination with Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) represent a powerful group of directional movement indicators.

A Primer on Binomial Option Pricing A binomial tree represents the different possible paths a stock price can follow over time.To define a binomial tree model, a basic period length… Read more »

Your portfolio can have a positive long term impact when the risk efficiency of your portfolio is maximized. Many investors tend to be risk averse. So, if you are going… Read more »

Implied volatility is a term which is very commonly used in the context of options trading. This is a very important metric to consider for your trading strategies. If you… Read more »

Moving Average Convergence Divergence (MACD) MACD is a popular trend-following momentum indicator. The MACD turns two trend-following indicators into a momentum oscillator by subtracting the longer moving average from the… Read more »

* Update – Trading models that were designed earlier using Yahoo! Finance API have been rewritten to retrieve quotes from Bloomberg Markets or an Open Source API. Only US stocks… Read more »

Relative Strength Index Plot Relative Strength Index or RSI is a popular computer generated technical indicator. An oscillator, is a technical analysis that measures market price momentum such as overbought… Read more »

Chande Momentum Oscillator Overview Chande Momentum Oscillator or CMO attempts to address few drawbacks of RSI by frequently identifying overbought and oversold price movements. CMO technical indicator was developed by… Read more »

How Sharp is the Sharpe-Ratio? If popularity was the only measurement for risk metrics, the Sharpe ratio would tell us everything we need to know. Modified Sharpe Ratio covers further spectrum… Read more »