Technical Indicators are instrumental in identifying the trends, daily highs/lows and to predict future price movements. The bedrock of Technical Analysis are Technical Indicators, and hence helps many traders in making informed decisions.
On Dhan, there are more than 100+ technical indicators across all the platforms, but for a lot of users the preference differs. The inclusion of any technical indicator on our platforms is evaluated based on multiple parameters, with the demand from the users topping the list.
We are very glad to introduce you to the addition of a few more technical indicators to our platform. Below are all new indicators we have introduced and how it can help traders like you.
Comparative Relative Strength
Comparative Relative Strength (CRS) is used to compare a security against an index, or against another security. The comparison is used to show the relative performance to each other.
When the Relative Strength Comparison indicator is moving up, it shows that the security’s price is performing better than the base security/index in relative terms. When the indicator is moving sideways, it shows that both securities prices are rising and falling by the same percentages. When the indicator is moving down, it shows that the security’s price is performing worse than the base security/index in relative terms.
The Comparative Relative Strength indicator is calculated by dividing the base security’s price by the second security or index’s price. The result of this division is the ratio, or relationship, between the two securities.
RS= Stock’s Price / Index’s Price or
RS= Stock’s Price/ 2nd Stock’s Price
One should note that the period of both the assets should be the same such as one day or one year.
VWAP is volume weighted average price. It is the average of prices rationalised by volume for a interval, session or day. Usually it starts with respect to the start of the day.
Anchored VWAP is volume weighted average price, customisable start date & time.
The formula to calculate VWAP is
VWAP = VWAP = ΣPrice x Volume / ΣVolume
Open Interest Indicator (coming soon)
We already have the Open Interest data on Option Chain in real time.This has no trail wrt to time. Now we have come with the Open Interest as Indicator for individual scrip. Here you will get a line chart plotted wrt time scale, corresponding to each candle above on the chart.
For an active contract, if we see
OI is increasing and Prices are also increasing. We can conclude that fresh longs are building up and the market is bullish.
OI decreasing & prices also decreasing, so Longs are unwinding. This is kind of squaring off the longs.
OI increasing & price decreasing, shorts are building up. Market can be bearish.
OI decreasing & price increasing, shorts are unwinding. Squaring off the shorts.
Update: Central Pivot Range
A highly requested request from our community members, we have now added previous Day High & Low.
We are continuously shipping out new features on all our platforms Dhan app, web.dhan.co, tv.dhan.co and Options Trader App. We hope that the addition of new technical indicators will help you in making informed decisions.
Full blown web experience: https://web.dhan.co/
Trade Directly from Charts: https://tradingview.dhan.co/
Explore our Superfast APIs: https://dhanhq.co/
Read trending topics on the stock market: https://blog.dhan.co/
Download Dhan App📱 https://bit.ly/startinvestingondhan