Stock Market Sorcery: The Wizards Behind Your Favorite Technical Indicators

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List of key technical indicators used in the stock market, along with their inventors and a brief description:

Early 20th Century

1. Dow Theory - Charles Dow

   - A framework for market analysis based on market trends and averages.

2. Point and Figure Charting - Charles Dow

   - A technique to identify price patterns without considering time.

1940s-1950s

3. Elliott Wave Theory - Ralph Nelson Elliott

   - Predicts market movements based on wave patterns.

4. Stochastic Oscillator - George Lane (1950s)

   - Compares closing prices to a range over a period to predict price turning points.

1960s-1970s

5. On-Balance Volume (OBV) - Joseph Granville (1963)

   - Uses volume flow to predict changes in stock price.

6. Accumulation/Distribution Line (ADL) - Marc Chaikin (1970s)

   - Measures the cumulative flow of money into and out of a security.

7. Relative Strength Index (RSI) - J. Welles Wilder (1978)

   - Identifies overbought or oversold conditions by measuring the speed and change of price movements.

8. Average True Range (ATR) - J. Welles Wilder (1978)

   - Measures market volatility.

9. Parabolic SAR (Stop and Reverse) - J. Welles Wilder (1978)

   - Determines potential reversals in price direction.

10. Commodity Channel Index (CCI) - Donald Lambert (1980)

    - Identifies cyclical trends in a commodity market.

1980s

11. Moving Average Convergence Divergence (MACD) - Gerald Appel (1979)

    - Shows changes in the strength, direction, momentum, and duration of a trend.

12. Bollinger Bands - John Bollinger (1980s)

    - Identifies volatility and potential price reversals using a middle band and two outer bands.

13. Ichimoku Cloud - Goichi Hosoda (1969, popularized in 1980s)

    - Provides a clearer picture of potential price action using more data points.

14. Money Flow Index (MFI) - Gene Quong and Avrum Soudack (1980s)

    - Measures the inflow and outflow of money into a security.

1990s-2000s

15. Chaikin Money Flow (CMF) - Marc Chaikin (1980s)

    - Measures the volume-weighted average accumulation-distribution line.

16. Williams %R - Larry Williams

    - Identifies overbought or oversold levels by comparing closing prices to high-low ranges.

17. Ultimate Oscillator - Larry Williams (1976)

    - Combines short-term, intermediate-term, and long-term oscillators into one value.

18. Trix - Jack Hutson (1980s)

    - Displays the rate of change in a triple-smoothed exponential moving average.

19. DMI (Directional Movement Index) - J. Welles Wilder (1978)

    - Identifies the strength of a trend and the direction of the market.

20. Aroon Indicator - Tushar Chande (1995)

    - Measures the time between highs and lows over a period to identify trends.

Modern and Advanced Indicators

21. Keltner Channel - Chester Keltner (1960s, modified by Linda Bradford Raschke in 1980s)

    - A volatility-based envelope set above and below an exponential moving average.

22. Donchian Channels - Richard Donchian

    - A trend-following indicator formed by the highest high and lowest low over a set period.

23. Volume Price Trend (VPT) - Unknown origin

    - Combines price and volume to determine the direction of a stock and the strength of that movement.

24. Volume Weighted Average Price (VWAP) - Institutional traders

    - Used to measure the average price a security has traded at throughout the day, based on both volume and price.

25. Price Rate of Change (ROC) - Unknown origin

    - Measures the percentage change in price between the current price and the price a certain number of periods ago.

26. Detrended Price Oscillator (DPO) - Unknown origin

    - Removes long-term trends to focus on shorter-term cycles.

27. Chande Momentum Oscillator (CMO) - Tushar Chande (1994)

    - Combines elements of momentum and rate of change indicators to identify overbought and oversold conditions.

28. Fibonacci Retracement - Based on Fibonacci sequence (popularized in the 20th century)

    - Identifies potential reversal levels by dividing the vertical distance between high and low points by key Fibonacci ratios.

This list includes both widely recognized and more specialized technical indicators used by traders and analysts to evaluate and predict market behavior.

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