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Daily Candlestick Chart for GLHV
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$QFOR BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for CGMX
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Day Trading: Day trading with the foreign exchange market is in some ways vastly different to that in other markets, in addition to which, day trading in the currencies market does not suffer from the unpleasant connotation that may spring to mind when one thinks of such things with relation to the stock market.
That said, if you have previously traded in other markets, then many items styles utilized in forex, such as forwards, futures, options, spread betting, contracts for difference and also the spot market are very similar to those used in the equity markets, and often maintain a minimum trade sizes for the base currencies.
It is worth noting however that day trading, being a fast moving, highly challenging trading style may not be for everyone. Should decide that day trading is for you, then there are also many different styles and variations of day trading with the currency market that you may wish to sample before choosing the form that feels right for you, or maybe you will prefer to utilize a series of styles.
The best way to learn the day trading styles with regards to forex markets is the same as in learning and perfecting any other trading style, or indeed other skill; by practice.
Talking to you forex trading mentor and other experienced day traders to see what styles have worked best for them over the years, ask for any hints, tips and techniques that may be of benefit and try them out before making the definitive choice of which style will be right for you.
$XTGR BarChart Trader's Cheat Sheet
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Validation
It takes two or more points to draw a trend line. The more points used to draw the trend line, the more validity attached to the support or resistance level represented by the trend line. It can sometimes be difficult to find more than 2 points from which to construct a trend line. Even though trend lines are an important aspect of technical analysis, it is not always possible to draw trend lines on every price chart. Sometimes the lows or highs just don't match up, and it is best not to force the issue. The general rule in technical analysis is that it takes two points to draw a trend line and the third point confirms the validity.
The chart of Microsoft (MSFT) shows an uptrend line that has been touched 4 times. After the third touch in Nov-99, the trend line was considered a valid line of support. Now that the stock has bounced off of this level a fourth time, the soundness of the support level is enhanced even more. As long as the stock remains above the trend line (support), the trend will remain in control of the bulls. A break below would signal that net-supply was increasing and that a change in trend could be imminent.
Daily Candlestick Chart for GIHI
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Cultural Factors Causing Irrational Exuberance
The news media and new era thinking are among the cultural factors cited by Shiller. Yes, the media seems to keep popping up in the book. Maybe that is why technical analysts only look at price charts!
The speculative bubble was clearly aided and abetted by the news media. Newspapers, television, radio and Internet media compete for public attention. Sensational stories with sound bites are more likely to attract attention than drab analysis with numbers and facts. Despite an inattention to detail, the news media was always there with specific reasons for a stock market move. The media always found the perfect excuse or news event to justify the move - after the fact. It is kind of like a solution in search of a problem.
Robert Shiller notes that news of price changes is influential on investor behavior. In his survey after the crash on October 19th 1987, Shiller listed all the recent news events that seemed relevant and asked respondents to rate the stories. News of the October 14th price decline was also included in this list. At the time, this was the single largest one-day point decline in the Dow Industrials. Surprisingly, the stories relating to the past price declines were deemed the most significant news events. As Shiller states:
Thus it appears that the stock market crash had substantially to do with a psychological feedback loop among the general investing public from price declines to selling and thus to further price declines, along the lines of a negative bubble. The crash apparently had nothing particularly to do with any news story other than that of the crash itself, but rather with theories about other investors' reasons for selling and about their psychology.
New era economic thinking was also cited by Shiller as a cultural factor that contributed to the stock market bubble. New era thinking is not new. Stock market advances in the late 1800s, 1920's and 1960's were also facilitated by new era thinking. At the 1901 peak, new era thinking centered around railroads, big industrial trusts and the age of optimism. The roaring 20's were marked by the electrical age for big cities and the widening use of autos. The 1960's were punctuated by a baby boom, the proliferation of television and low inflation. And finally, the 1990s saw the Internet boom, low inflation, the new economy and the alleged end of the business cycle.
Diamond: The diamond formation, more commonly known as a diamond top, is a relatively rare chart formation used in technical analysis. When a diamond top forms, it forms at the conclusion of a long uptrend in price, and it indicates an imminent reversal of the trend. As such, the diamond top formation generates a very strong sell signal.
Traders and technical analysts recognize a diamond formation by first recognizing a head-and-shoulders formation (a peak and trough, followed by a higher peak and another trough, followed by a peak somewhere below the level of the previous peak: in other words, three peaks, the middle one being the tallest.) Four trendlines are drawn: one (ascending) from the first peak to the second peak, one (descending) from the second peak to the third peak, one (ascending) from the second trough to the low of the third peak, and one (descending) from the first trough to the second trough. The four lines altogether form a rough diamond shape, giving the chart its name.
The diamond top forms an overall descending trend channel, allowing traders to determine levels of support and resistance for the asset's price as it enters a downtrend or a momentary reversal. However, if the lower support line of the channel is broken, traders consider it likely that asset prices will reverse and begin again to climb.
What is the SEC?
The Securities and Exchange Commission (SEC) is the government agency responsible for protecting investors by monitoring and regulating brokers, dealers, and the stock and bond markets in the U.S. They also make sure publicly-traded companies disclose the required business details to the public.
Daily Candlestick Chart for LQMT
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Interpretation of Kagi Charts
The simplest way to interpret Kagi charts can be summed up by Steve Nison's expression Buy on yang, sell on yin. When the Kagi line goes from thin to thick, prices have just exceeded their previous important high – that's a bullish signal. The opposite is also true. When the Kagi line goes from thick to thin, prices have just fallen below their previous low, not a good sign for things to come.
Standard support/resistance, trend and chart pattern analysis techniques can also be used with Kagi charts. In fact it is often easier to locate strong support or resistance levels on Kagi charts because of their "clean" appearance.
Another interpretation technique mentioned by Steve Nison is to look for a sequence of nine (mostly consecutive) shoulders or waists. Traders look for strong counter-moves soon after the ninth shoulder or waist appears.
Analyst: When analyzing the market, analysts can generally be divided into two camps - fundamentals and technicals.
Fundamental analysts are those who mainly look at the fundamental aspects of an economy in forming their opinions. They stay on top of the markets by reading and analyzing what the current economic data say about current market conditions, what is fundamentally driving the market, and where it's headed.
Technical analysts are those who primarily rely on chart indicators and patterns to help predict where price will move next. Some tools that technical analysts use are Fibonacci retracement, candlesticks and momentum indicators.
Strengths of Technical Analysis
Focus on Price
If the objective is to predict the future price, then it makes sense to focus on price movements. Price movements usually precede fundamental developments. By focusing on price action, technicians are automatically focusing on the future. The market is thought of as a leading indicator and generally leads the economy by 6 to 9 months. To keep pace with the market, it makes sense to look directly at the price movements. More often than not, change is a subtle beast. Even though the market is prone to sudden knee-jerk reactions, hints usually develop before significant moves. A technician will refer to periods of accumulation as evidence of an impending advance and periods of distribution as evidence of an impending decline.
Daily Candlestick Chart for CGUD
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$NHVCF BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for OREO
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Business Acumen as a Strength of Fundamental Analysis
One of the most obvious, but less tangible, rewards of fundamental analysis is the development of a thorough understanding of the business. After such painstaking research and analysis, an investor will be familiar with the key revenue and profit drivers behind a company. Earnings and earnings expectations can be potent drivers of equity prices. Even some technicians will agree to that. A good understanding can help investors avoid companies that are prone to shortfalls and identify those that continue to deliver. In addition to understanding the business, fundamental analysis allows investors to develop an understanding of the key value drivers and companies within an industry. A stock's price is heavily influenced by its industry group. By studying these groups, investors can better position themselves to identify opportunities that are high-risk (tech), low-risk (utilities), growth oriented (computer), value driven (oil), non-cyclical (consumer staples), cyclical (transportation) or income-oriented (high yield).
Bank of Japan (BOJ) Monetary Policy Monthly Report: Release schedule : 6:00 (GMT); in the middle of the month
Revisions schedule : None
Source of report : Bank of Japan
Web Address : http://www.boj.or.jp/en/
Address of release : http://www.boj.or.jp/en/theme/seisaku/handan/gp/index.htm
$AMBEQ BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for PSID
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$MAXE BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for MPPCQ
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Definition of Fair Value
When market valuations extend beyond historical norms, there is pressure to adjust growth and multiplier assumptions to compensate. If Wall Street values a stock at 50 times earnings and the current assumption is 30 times, the analyst would be pressured to revise this assumption higher. There is an old Wall Street adage: the value of any asset (stock) is only what someone is willing to pay for it (current price). Just as stock prices fluctuate, so too do growth and multiplier assumptions. Are we to believe Wall Street and the stock price or the analyst and market
assumptions?
It used to be that free cash flow or earnings were used with a multiplier to arrive at a fair value. In 1999, the S
Daily Candlestick Chart for LGBS
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$THMG BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for HOMJF
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$SBRH BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for NPFT
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Descending Trend Channel: Descending trend channels are basic chart patterns used in technical analysis. A descending trend channel is formed by drawing two trendlines, one through the high prices for an asset and one through the low prices for the asset. If the trend in prices is downward, then the space between the trend lines forms a descending trend channel.
Descending trend channels, like ascending trend channels, are a tool for determining whether the short-term trend in price will continue. As long as prices remain within the region defined by the trend channel, traders expect the overall trend to go on as it is. Once prices break out of the channel, a strong signal either to buy or sell is generated. If prices break upward out of the channel, the signal is bullish; if prices break downward, the signal is bearish.
Descending trend channels often appear within an overall uptrend in prices, and represent either a continuation of the trend or a reversal of the trend, depending on the direction of the break.
Daily Candlestick Chart for CZICF
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DeMarker Indicator: The Demarker Indicator is a technical analysis tool developed by Tom Demarker for identifying high-risk buying or selling areas in a given market.
Two variants of the Demarker Indicator exist, one bounded by values from -100 to 100, the other bounded by values from 0 to 1. The basic principle behind the Indicator is the same in either case. If the high price for a period is higher than the previous period's high, the DeMax variable for that period is the difference between the highs; the DeMin variable for the period works similarly for the low prices. The Demarker Indicator is then the moving average of DeMax divided by the sum of the moving averages of DeMax and DeMin. Thus, the higher the value of DeMax relative to DeMin, the greater the value of the Demarker Indicator.
On the 0 to 1 Demarker Indicator scale, a value anywhere above .7 indicates that a downward price turn is imminent, while a value anywhere below .3 indicates that the price will shortly turn upward. Values between .3 and .7 indicate relatively low-risk periods for entering a given asset market. Thus savvy traders can use the Demarker Indicator either to determine when to enter a market, or when to buy or sell an asset in order to capitalize on probable imminent price trends.
$DECN BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for COHO
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$ENTB BarChart Trader's Cheat Sheet
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Dovish: Refers to the tone of language when describing a non-aggressive stance or viewpoint regarding a specific economic event or action. It’s often used when describing the economy or interest rates of a country.
Central bankers are described as "dovish" because they generally favor economic growth and employment over tightening interest rates.
Opposite of Hawkish (hawk).
Exhaustion Gaps
Exhaustion gaps are those that happen near the end of a good up- or downtrend. They are many times the first signal of the end of that move. They are identified by high volume and large price difference between the previous day's close and the new opening price. They can easily be mistaken for runaway gaps if one does not notice the exceptionally high volume.
It is almost a state of panic if the gap appears during a long down move where pessimism has set in. Selling all positions to liquidate holdings in the market is not uncommon. Exhaustion gaps are quickly filled as prices reverse their trend. Likewise, if they happen during a bull move, some bullish euphoria overcomes trades, and buyers cannot get enough of that stock. The prices gap up with huge volume; then, there is great profit taking and the demand for the stock totally dries up. Prices drop, and a significant change in trend occurs. Exhaustion gaps are probably the easiest to trade and profit from. In the chart, notice that there was one more day of trading to the upside before the stock plunged. The high volume was the giveaway that this was going to be, either, an exhaustion gap or a runaway gap. Because of the size of the gap and the near doubling of volume, an exhaustion gap was in the making here.
Delta Air Lines (DAL) Exhaustion Gap example chart from StockCharts.com
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