ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:4 (74): Novice Trader's Notebook: Momentum by Amy Wu MOMENTUM The momentum indicator was first presented in J. Welles Wilder's ""New Concepts In Trading Systems"" and has since become a popular technical tool. Price momentum is defined as the measure of velocity of price change or market speed. The difference method for calculating a momentum indicator is the following: have n be the time period (usually 14 days), then subtract the close n periods ago from the present close period. If both of these closing values are identical, then the difference is zero. If the p...
ARTICLE SYNOPSIS ...Novice Trader's Notebook: Bollinger Bands by Amy Wu BOLLINGER BANDS Bollinger Bands were created by market technician John Bollinger. They are a branch of envelope analysis and use standard deviations in calculation instead of a fixed percentage. Bollinger Bands are displayed as three bands. The middle band normally consists of a moving average of 20 days. The upper band is derived by adding two standard deviations to the middle band. The lower band is found by subtracting two standard deviations from the middle band....
ARTICLE SYNOPSIS ...Traders' Notes: Stochastic Oscillator by Amy Wu ? STOCHASTIC OSCILLATOR While stochastics is the mathematics of randomness, a stochastic oscillator compares a security's price relative to its price range over any given time period. ...
ARTICLE SYNOPSIS ...Novice Trader's Notebook by Amy Wu ON-BALANCE VOLUME First developed by Joe Granville and published in his text New Strategy Of Daily Stock Market Timing For Maximum Profits, on-balance volume (OBV) is a momentum indicator that relates volume to price change. Specifically, the on-balance volume keeps tabs on the running total of volume that is flowing in and out of a security. For instance, if the price of a security closes higher than the close of the previous day, it's up volume. Likewise, when the security's price closes lower than the previous day, it's down volume....
ARTICLE SYNOPSIS ...Fast Fourier Transformation by Amy Wu For a long time, Fourier transforms were used mostly by engineers. Transforms were used to study sound waves, frequency vibrations, and other repetitive occurrences. Since then, Fourier transforms have been applied to a number of other diverse fields. Aerospace engineers use them to study a plane's wing-tip vibrations during flight, while musicians use them to identify patterns when strumming musical instruments. It was only a matter of time before someone used Fourier transforms for technical analysis, specifically, a type of calculation called the fast ...
ARTICLE SYNOPSIS ...Is a new trend beginning?...
ARTICLE SYNOPSIS ...Working Money: Commodity Channel Index by Amy Wu How can you tell when a new trend is beginning? The consensus is that the markets have hit a bottom and are starting to show signs of recovery. To find out whether this is true, you can apply the commodity channel index (CCI), an indicator useful for determining the beginning and end of a trend. Introduced by Donald Lambert in 1980, the commodity channel index is a price momentum indicator that measures the degree of variance of a security price from its statistical mean. Although originally developed for trading commodities, the CCI can be u...
ARTICLE SYNOPSIS ...The rising three and falling three candlestick patterns can help you confirm trends, add to positions, and grant you a cease-fire from the battle between the bulls and the bears....
ARTICLE SYNOPSIS ...As an indicator, J. Welles Wilder's relative strength index (RSI) is extremely useful in predicting tops, bottoms, and reversals, and finding support and resistance lines....
ARTICLE SYNOPSIS ...ItsDeductible...
ARTICLE SYNOPSIS ...Indicators like the moving average convergence/divergence help you confirm signals and decrease risk when buying and selling securities. Invented by Gerald Appel in the 1970s, the MACD has become a staple in the world of technical analysis. Here's how you can make use of it....
ARTICLE SYNOPSIS ...Market movement has often been described as an unrelenting tide that floats all securities. With all the uncertainty in the present economy, market indicators can help you stay afloat....
ARTICLE SYNOPSIS ...Here is another entry in our Novice Trader's Notebook, this one to explain Bollinger Bands, which are a well-used and well-loved ingredient on any market analyst's chart....
ARTICLE SYNOPSIS ...Identify overbought and oversold levels with this popular indicator....
ARTICLE SYNOPSIS ...Continuation Patterns by Amy Wu The rising three and falling three candlestick patterns can help you confirm trends, add to positions,and grant you a cease-fire from the battle between the bulls and the bears. Candlestick charting extends well beyond confirming support and resistance levels and predicting market tops and bottoms. Active markets always attract traders, but sometimes recognizing market inaction is as necessary as finding activity in the market. There are times to sell, times to buy, and times to rest, and the continuation pattern recognizes those times to rest. But just becaus...
ARTICLE SYNOPSIS ...Working Money: A Taste Of The Big MACD by Amy Wu Indicators like the moving average convergence/divergence help you confirm signals and decrease risk when buying and selling securities. Invented by Gerald Appel in the 1970s, the MACD has become a staple in the world of technical analysis. Here's how you can make use of it. One of the most popular indicators used in technical analysis is the MACD (moving average convergence/divergence). In its most common form, the MACD is calculated by taking the difference between a 26-day and a 12-day exponential moving average. This difference, sometimes ...
ARTICLE SYNOPSIS ...Sabrient.com...
ARTICLE SYNOPSIS ...A Young Adult's Guide To Investing And Financial Decisions That Can Shape Your Life....