Netquote - FAQ Charts - Indicator definitions

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When using the Charts there are a number of options that you can change below the chart.

Price Plot Attributes

Predefined Date Range	Select the date range for the chart, default setting is 6 months.
Custom Dates	Enter the date range you want for the charts, historical information goes back 10 years. Change period from Day to Year etc.
Skin	You can change the look of the chart by selecting a new skin. This will change the appearance of the chart.
Chart Size	If you need to alter the size of the chart select your screen resolution here.
Type	Various chart types are available, default is the candlestick chart.
Scale	Change the scale from Linear to Log

Price Overlays

Simple Moving Average (SMA)	A simple, or arithmetic, moving average is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. In other words, it's the average stock price over a period of time. Keep in mind that equal weighting is given to each daily price.
Exponential Moving Average (EMA)	A type of moving average that is similar to a Simple Moving Average, except that more weight is given to the latest data. Also known as an exponentially weighted moving average, this type of moving average reacts faster to recent price changes than a Simple Moving Average.
Bollinger Band	A band plotted two standard deviations away from a simple moving average. Because standard deviation is a measure of volatility, Bollinger bands adjust themselves to the market conditions. When the markets become more volatile the bands widen (move further away from the average), and, during less volatile periods, the bands contract (move closer to the average). This is among one of the most popular technical analysis techniques. The closer the prices move to the upper band, the more overbought the market, and the closer the prices move to the lower band, the more oversold the market.
Parabolic SAR	A technical analysis strategy that uses a trailing stop and reverse method called "SAR," or stop-and-reversal, to determine good exit and entry points. This method was developed by J. Wells Wilder. Basically, if the stock is trading below the parabolic SAR you should sell. If the stock price is above the SAR then you should buy (or stay long).
Zig Zag	A technical analysis indicator that filters out changes in an underlying plot that are less than a specified amount. In other words, it helps to show only significant changes.
Support	The price a stock or market trades at, but does not go lower than, over a certain period of time. Often referred to as the support level. The stock or market stops dropping because buyers start to outnumber sellers.
Resistance	The price a stock or market can trade at, but cannot exceed, for a certain period of time. Often referred to as resistance level. The stock or market stops rising because sellers start to outnumber buyers.
Fibonacci Numbers/Lines	Leonardo Fibonacci was an Italian mathematician born in the 12th century. He is known to have discovered the "Fibonacci numbers," which are a sequence of numbers where each successive number is the sum of the two previous numbers. e.g. 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. These numbers possess a number of interrelationships, such as the fact that any given number is approximately 1.618 times the preceding number. Interpretation of the Fibonacci numbers in technical analysis anticipates changes in trends as prices tend to be near lines created by the Fibonacci studies. The four popular Fibonacci studies are arcs, fans, retracements, and time zones.

Indicator Windows

MACD	The Moving Average Convergence Divergence "MACD" is a trend following momentum indicator that shows the relationship between two moving averages of prices. To Calculate the MACD subtract the 26-day EMA from a 12-day EMA. A 9-day dotted EMA of the MACD called the signal line is then plotted on top of the MACD. There are 3 common methods to interpret the MACD: Crossovers - When the MACD falls below the signal line it is a signal to sell. Vice versa when the MACD rises above the signal line. Divergence - When the security diverges from the MACD it signals the end of the current trend. Overbought/Oversold - When the MACD rises dramatically (shorter moving average pulling away from longer term moving average) it is a signal the security is overbought and will soon return to normal levels.
On Balance Volume	A method used in technical analysis to detect momentum, the calculation relates volume to price change. OBV provides a running total of volume and shows if this volume is flowing in or out. This indicator was developed by Joe Granville. Basically it attempts to detect when a financial instrument (stock, bond, etc.) is being accumulated by a large number of buyers, or sold by many sellers.
Average True Range	A measure of volatility introduced by Welles Wilder in his book: New Concepts in Technical Trading Systems. The True Range indicator is the greatest of the following: current high less the current low. the absolute value of the current high less the previous close. the absolute value of the current low less the previous close. The Average True Range is a moving average (generally 14-days) of the True Ranges. Wilder originally developed the ATR for commodities but the indicator can also be used for stocks and indexes. Simply put, a stock experiencing a high level of volatility will have a higher ATR, and a low volatility stock will have a lower ATR.
Volume	The number of shares or contracts traded in a security or an entire market during a given period. Typically, a large increase in volume means that some sort of news is coming out. Volume is a very important indicator in technical analysis.
Stochastic Oscillator	A technical indicator that compares where a security's price closed relative to its price range over a given time period. The theory behind this indicator is that, in an upwardly trending market, prices tend to close near their high. Whereas, during a downward trending market, prices tend to close near their low.
Rate of Change	The speed at which a variable changes over a specific period of time. Rate of change analysis is often used by technical analysts. A sudden surge in the ROC for a security's volume might indicate a reversal or increased momentum
Williams %R	A technical analysis momentum indicator that measures overbought and oversold levels. It is used to determine market entry and exit points. A Williams reading over 80% usually indicates a stock is oversold, while readings below 20% suggests a stock is overbought.
Relative Strength Index	A technical analysis indicator that compares the days that a stock finishes up against when it finishes lower. The RSI ranges from 0 to 100, but a stock is considered overbought if it reaches the 70 level, meaning that you should consider selling. When it is a true bull market, an RSI of 80 might be a better level since stocks often trade at higher valuations. Likewise, if the RSI approaches 30, it is a strong buying indicator (20 in a strong bear market). The RSI is a big tool in momentum trading. The RSI can help you make some serious money, but be forewarned, it isn't a decision maker. Big surges and drops in stocks will effect the RSI, but it could just be a false buy or sell. The RSI is best used as a valuable compliment to your other stock picking tools.
Accumulation / Distribution	A momentum indicator that associates changes in price and volume. It is based on the premise that a price move is more significant with larger volume. When there are more buyers than sellers on a particular stock then it is under accumulation, but when there are more sellers then buyers the stock is under distribution.
Chaikin	An oscillator created by subtracting a 10-day EMA from a 3-day EMA of the accumulation/distribution line. This indicator is named after its creator, Marc Chaikin.

Definitions reproduced from

www.investopedia.com

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