Average True Range

Definition of Average True Range (ATR) The average true range (ATR) is a technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for that period. The true range indicator is originally designed for use with commodities markets but has since been applied to all types of securities. To … Read more

Average Directional Index

Definition of Average Directional Index (ADX) Traders use the average directional index (ADX) as a technical analysis indicator to determine the strength of a trend. The trend can be up or down, which can be represented by two accompanying indicators, known as the Negative Directional Indicator (-DI) and the Positive Directional Indicator (+DI) respectively. The … Read more

Bond Yield Curve

First and foremost, the bond yield curve has a close relationship with the term structure of interest rates, to be more specific, the yield curve in some sense indicates how interest rates vary over investment horizons. Additionally, it can also be a useful tool for interpreting the market expectation of interest rate. In terms of … Read more