KLAC 🔗

Bollinger Bands (violet shaded region) surround the price with upper and lower bands set 2 standard deviations above and below the 20-period moving average. When bands narrow (squeeze), volatility is low — often precedes a big move in either direction. Price touching the upper band = extended, watch for pullback or consolidation. Price touching the lower band = oversold in the short term. The MA20 and MA50 dashed lines show medium-term trend direction.

Volume confirms price moves. Green bars = price closed up that period; red bars = price closed down. High volume on a price move = conviction; low volume = weak move, possible reversal. Volume declining during a rally = weakening uptrend. The MA20 line shows the average volume — spikes above it signal unusual activity (earnings, news, institutional buying/selling).

RSI (Relative Strength Index) measures momentum on a 0–100 scale. It compares the average gain vs average loss over the past 14 periods. Above 70 = overbought (momentum may be exhausted, watch for reversal). Below 30 = oversold (selling may be overdone, watch for bounce). RSI can stay extreme in strong trends — use alongside price action and volume for confirmation.

MACD shows momentum by subtracting the 26-period EMA from the 12-period EMA. MACD line crossing above the signal line (9-period EMA of MACD) is bullish; crossing below is bearish. The histogram (green/red bars) shows the gap between them — widening = strengthening momentum, shrinking = momentum fading. A zero-line cross confirms trend direction change.

📖 How to read this chart

The Stochastic Oscillator compares a stock's closing price to its price range over the past 14 periods. %K (green line) is the raw momentum reading; %D (amber dashed) is a 3-period moving average of %K acting as a signal line — like MACD's signal line but for this indicator. Values range 0–100. Above 80 = overbought (price is near the top of its recent range, possible pullback ahead). Below 20 = oversold (price near the bottom of recent range, possible bounce). A %K crossing above %D is a bullish momentum signal; crossing below is bearish. Best used alongside RSI and price context.

Historical Volatility (HV) measures how much the stock's price has moved, expressed as an annualized percentage. HV20 = 20-period rolling volatility (short-term); HV60 = 60-period (longer-term). Rising HV = increasing uncertainty/risk. Low HV followed by a spike often precedes a big move. Options traders use HV to assess whether options implied volatility (IV) is cheap or expensive relative to realized moves.