Stump News Glossary
- Average Directional Index (ADX)
- is an indicator that measures the strength of a recent trend. It is scaled from 0 to 100. Generally a move above 20 is considered a start of a new trend, and a move below 40 indicates the end of a trend.
- Williams %R
- is a measure of how overbought or oversold the stock is. It uses the high and low over past x periods and recent close to create a scaled indicator between 0 and -100. Generally 0 to -20 indicates overbought and -80 to -100 indicates oversold. The formula is %R=[(Recent High - Close)/(Recent High - Recent Low)] * (-100) note: recent is defined by whatever length you want to consider, most common period is 14 days.