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Coppock Curve
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Learn all aspects of trading penny stocks in Chart School, Videos include;
Accumulation Distribution
ADX - Average Directional Index
Aroon
ATR - Average True Range
Bollinger %B
Bollinger Band Width
CCI - Commodity Channel Index
Chaikin Oscillator
CMF - Chaikin Money Flow
Coppock Curve
Correlation Coefficient
EMV- Ease of Movement
Fibonacci Retracement
Force Index
KST - Know Sure Thing
MACD Histogram
Mass Index
MFI - Money Flow Index
OBV - On Balance Volume
PPO - Percentage Price Oscillator
PVO - Percentage Volume Oscillator
ROC - Rate Of Change
Standard Deviation - Volatility
Stochastics RSI
Support and Resistance
TRIX
TSI - True Strength Index
Ulcer Index
Ultimate Oscillator
Volume by Price
VTX - Vortex Indicator
Williams % R
Chart Setup 1
Chart Setup 2
Chart Patterns 1
Chart Patterns 2 The Best Bullish and Bearish Patterns
Choosing Indicators
Best part is that it's all FREE!
So what are you waiting for - Get started now!
KST - Know Sure Thing Video
WATCH VIDEO - CLICK HERE <-
Learn all aspects of trading penny stocks in Chart School, Videos include;
Accumulation Distribution
ADX - Average Directional Index
Aroon
ATR - Average True Range
Bollinger %B
Bollinger Band Width
CCI - Commodity Channel Index
Chaikin Oscillator
CMF - Chaikin Money Flow
Coppock Curve
Correlation Coefficient
EMV- Ease of Movement
Fibonacci Retracement
Force Index
KST - Know Sure Thing
MACD Histogram
Mass Index
MFI - Money Flow Index
OBV - On Balance Volume
PPO - Percentage Price Oscillator
PVO - Percentage Volume Oscillator
ROC - Rate Of Change
Standard Deviation - Volatility
Stochastics RSI
Support and Resistance
TRIX
TSI - True Strength Index
Ulcer Index
Ultimate Oscillator
Volume by Price
VTX - Vortex Indicator
Williams % R
Chart Setup 1
Chart Setup 2
Chart Patterns 1
Chart Patterns 2 The Best Bullish and Bearish Patterns
Choosing Indicators
Best part is that it's all FREE!
So what are you waiting for - Get started now!
$ATPT ADDITIONAL REVERSE MERGER DUE DILIGENCE
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Correlation Coefficient
WATCH VIDEO - CLICK HERE <-
Learn all aspects of trading penny stocks in Chart School, Videos include;
Accumulation Distribution
ADX - Average Directional Index
Aroon
ATR - Average True Range
Bollinger %B
Bollinger Band Width
CCI - Commodity Channel Index
Chaikin Oscillator
CMF - Chaikin Money Flow
Coppock Curve
Correlation Coefficient
EMV- Ease of Movement
Fibonacci Retracement
Force Index
KST - Know Sure Thing
MACD Histogram
Mass Index
MFI - Money Flow Index
OBV - On Balance Volume
PPO - Percentage Price Oscillator
PVO - Percentage Volume Oscillator
ROC - Rate Of Change
Standard Deviation - Volatility
Stochastics RSI
Support and Resistance
TRIX
TSI - True Strength Index
Ulcer Index
Ultimate Oscillator
Volume by Price
VTX - Vortex Indicator
Williams % R
Chart Setup 1
Chart Setup 2
Chart Patterns 1
Chart Patterns 2 The Best Bullish and Bearish Patterns
Choosing Indicators
Best part is that it's all FREE!
So what are you waiting for - Get started now!
Candlestick Chart
Originating in Japan over 300 years ago, candlestick charts have become quite popular in recent years. For a candlestick chart, the open, high, low and close are all required. A daily candlestick is based on the open price, the intraday high and low, and the close. A weekly candlestick is based on Monday's open, the weekly high-low range and Friday's close.
[img]http://stockcharts.com/school/data/media/chart_school/what_are_charts/charts-5sunw-cst.png
Many traders and investors believe that candlestick charts are easy to read, especially the relationship between the open and the close. White (clear) candlesticks form when the close is higher than the open and black (solid) candlesticks form when the close is lower than the open. The white and black portion formed from the open and close is called the body (white body or black body). The lines above and below are called shadows and represent the high and low.
Chart Basics
A price chart is a sequence of prices plotted over a specific time frame. In statistical terms, charts are referred to as time series plots.
On the chart, the y-axis (vertical axis) represents the price scale and the x-axis (horizontal axis) represents the time scale. Prices are plotted from left to right across the x-axis with the most recent plot being the furthest right. The price plot for IBM extends from January 1, 1999 to March 13, 2000.
Technicians, technical analysts and chartists use charts to analyze a wide array of securities and forecast future price movements. The word "securities" refers to any tradable financial instrument or quantifiable index such as stocks, bonds, commodities, futures or market indices. Any security with price data over a period of time can be used to form a chart for analysis.
Deflation: Deflation is the opposite of inflation. It is the decrease in the price of a basket of goods and services. Deflation happens when the annual inflation rate turns negative. Such an event is usually brought about by a reduction in the money supply and/or credit.
Currency Impact
While inflation tends to decrease the purchasing power of a currency, deflation tends to result in an increase in the “real” value of money.
British Industrial Production: Release Schedule: 8:30 (GMT); monthly, usually 26 working days following the reporting month's end
Revisions Schedule: Monthly revisions made to adjust for incomplete data.
Source of Report: Office for National Statistics (UK)
Web Address: http://www.statistics.gov.uk/default.asp
Address of release: http://www.statistics.gov.uk/statbase/Product.asp?vlnk=6230
To assess a industry group's potential, an investor would want to consider the overall growth rate, market size, and importance to the economy. While the individual company is still important, its industry group is likely to exert just as much, or more, influence on the stock price. When stocks move, they usually move as groups; there are very few lone guns out there. Many times it is more important to be in the right industry than in the right stock! The chart below shows that relative performance of 5 sectors over a 7-month time frame. As the chart illustrates, being in the right sector can make all the difference.
Commodity Channel Index: The Commodity Channel Index is a tool developed by Donald Lambert to measure the point at which cyclical price reversals for a given asset can be expected. One of the fundamental assumptions behind the CCI is that price trends reverse at regular intervals within an asset, allowing investors to take the appropriate action when the CCI indicates that one of those cyclical reversals is imminent.
The CCI is calculated first by averaging the high, low and closing prices into a measure called the True Price, or TP. A 20-period moving average of the TP becomes the Simple Moving Average of the True Price, or SMATP. A standard deviation of the difference between SMATP and TP over twenty periods is also taken. The difference between TP and SMATP is then divided by the product of this standard deviation and a constant value of .015 to produce the CCI.
The constant value of .015 ensures that the majority of CCI values fall between 100 and -100. In the case that the absolute value of CCI exceeds 100, Lambert's theory indicates that the market is approaching one of its cyclical reversals, and that traders should take the appropriate action. The CCI also indicates overbought and oversold levels, which are any levels whose absolute value exceeds 100. If the CCI moves outside of the -100 to 100 range and then returns, either a buy or sell signal is generated, depending on whether the CCI was below -100 (oversold) or above 100 (overbought.)
Definition of 'Death Cross'
A crossover resulting from a security's long-term moving average breaking above its short-term moving average or support level.
Read more: http://www.investopedia.com/terms/d/deathcross.asp#ixzz26ev7vRbs
Bank of England (BOE) Rate Decision: Release schedule : 11:00 AM GMT (about 7:00 AM EST); Monthly in the first or second week.
Source of report : Bank of England Monetary Policy Committee
Web Address : http://www.bankofengland.co.uk
Address of release : http://www.bankofengland.co.uk/monetarypolicy/decisions.htm
Will somebody always buy my stocks when I sell them?
No. If you try to sell more shares than people are willing to buy or if your price is unreasonable, it may take a long time for them to sell, if at all. However, if you use market orders on medium or high volume stocks you should not have any problems selling them immediately.
What Is Support?
Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support.
Support does not always hold and a break below support signals that the bears have won out over the bulls. A decline below support indicates a new willingness to sell and/or a lack of incentive to buy. Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices. In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once support is broken, another support level will have to be established at a lower level.
Chart Indicators:
• Bollinger Bands
• MACD (Moving Average Convergence Divergence)
• Parabolic SAR
• Stochastics
• RSI (Relative Strength Index)
• Moving Average
• RSI(SMA)
• RSI(EMI)
• Momentum
• MC
• Volume
• ADX
• OBV
• MFI
• Williams % Range
• ROC
• Volatility
• Standard Deviation
• Trend Line
• Elliott Wave
Sometimes, there is a price cluster with a high or low spike sticking out. A price cluster is an area where prices are grouped within a tight range over a period of time. The price cluster can be used to draw the trend line, and the spike can be ignored. The Coca Cola (KO) chart shows an internal trend line that is formed by ignoring price spikes and using the price clusters, instead. In October and November 1998, Coke formed a peak, with the November peak just higher than the October peak (red arrow). If the November peak had been used to draw a trend line, then the slope would have been more negative, and there would have appeared to be a breakout in Dec-98 (gray line). However, this would have only been a two-point trend line, because the May-June highs are too close together (black arrows). Once the Dec-99 peak formed (green arrow), it would have been possible to draw an internal trend line based on the price clusters around the Oct/Nov-98 and the Dec-99 peaks (blue line). This trend line is based on three solid touches, and it accurately forecasts resistance in Jan-00 (blue arrow).
Carry Trade: The Carry Trade is a trading strategy where investors/traders sell or borrow assets (such as currencies) with lower yielding interest rates to fund or buy higher yielding assets.
In the Foreign exchange, interest is debited or credit from a trader's account everyday on open positions.
The most popular Carry Trade in recent history has been to sell Japanese Yen and buy higher yielding currencies such as the Australian Dollar, New Zealand Dollar, and British Pound.
For example, if you buy the AUD/JPY, then you sell Japanese Yen (which yields 0.00% a year)and buy an equivalent amount of Australian Dollars (which yields 3.50% a year) simultaneously. So, for as long as you hold that position you would pay 0.00% interest a year for borrowing Japanese Yen, and receive 3.50% a year for holding Australian Dollars.
The interest rate differential of that position is 3.50 (3.50% - 0.00%). So you would receive approximately 3.50% a year on the value of the position, depending on the margin interest charged by the broker and on exchange rate volatility.
How to Pick a Time Frame
The time frame used for forming a chart depends on the compression of the data: intraday, daily, weekly, monthly, quarterly or annual data. The less compressed the data is, the more detail is displayed.
Daily data is made up of intraday data that has been compressed to show each day as a single data point, or period. Weekly data is made up of daily data that has been compressed to show each week as a single data point. The difference in detail can be seen with the daily and weekly chart comparison above. 100 data points (or periods) on the daily chart is equal to the last 5 months of the weekly chart, which is shown by the data marked in the rectangle. The more the data is compressed, the longer the time frame possible for displaying the data. If the chart can display 100 data points, a weekly chart will hold 100 weeks (almost 2 years). A daily chart that displays 100 days would represent about 5 months. There are about 20 trading days in a month and about 252 trading days in a year. The choice of data compression and time frame depends on the data available and your trading or investing style.
Short selling is not as common as going long for several reasons:
It requires a margin account, which has special requirements.
There is the risk of losing more than 100% of your money from your investment portfolio.
Some people consider it wrong to bet against a company.
Despite these concerns, short selling is successfully used every day by thousands of traders. It is actually a healthy part of the markets. For example, when the markets are having a bad day, who is buying the shares that most people are trying to get rid of? Short sellers are, along with the "longs" who are trying to buy at bargain prices. They are trying to cover their shorted positions and take a profit.
Support/Resistance
Simple chart analysis can help identify support and resistance levels. These are usually marked by periods of congestion (trading range) where the prices move within a confined range for an extended period, telling us that the forces of supply and demand are deadlocked. When prices move out of the trading range, it signals that either supply or demand has started to get the upper hand. If prices move above the upper band of the trading range, then demand is winning. If prices move below the lower band, then supply is winning.
Descending Triangle: A descending triangle is a simple chart pattern used in technical analysis. The descending triangle is formed from two trendlines, one for high prices and one for lows. The upper trendline of the triangle is a descending trendline, while the lower trendline is a horizontal trendline. The resulting shape is a right triangle whose hypotenuse moves downward over time.
In order to confirm a descending triangle on an asset's chart, traders must note two reaction lows of similar magnitude and two reaction highs, each declining in price over time. There should be a reasonable amount of distance between each low or high. Descending triangles usually form and develop over a one to three month period.
The descending triangle is always a bearish pattern, indicating a strong sell signal. Prices on the upper trendline continue to decline, narrowing the triangle formation, until the level of support represented by the lower trendline is broken. When a level of support is broken, it becomes a level of resistance, confirming the overall downward trend of the asset's price over time.
Trader's Remorse
Not all technical signals and patterns work. When you begin to study technical analysis, you will come across an array of patterns and indicators with rules to match. For instance: A sell signal is given when the neckline of a head and shoulders pattern is broken. Even though this is a rule, it is not steadfast and can be subject to other factors such as volume and momentum. In that same vein, what works for one particular stock may not work for another. A 50-day moving average may work great to identify support and resistance for IBM, but a 70-day moving average may work better for Yahoo. Even though many principles of technical analysis are universal, each security will have its own idiosyncrasies.
What is the Dow Jones or the DJIA?
The Dow Jones Industrial Average (often referred to as the "Dow") is an averaged number representing the values of 30 U.S. "blue-chip" stocks. The DJIA is the most well-known market indicator in the world and was created in 1896 by Dow Jones
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.
Prices Movements are not Totally Random
Most technicians agree that prices trend. However, most technicians also acknowledge that there are periods when prices do not trend. If prices were always random, it would be extremely difficult to make money using technical analysis. In his book, Schwager on Futures: Technical Analysis, Jack Schwager states:
"One way of viewing it is that markets may witness extended periods of random fluctuation, interspersed with shorter periods of nonrandom behavior. The goal of the chartist is to identify those periods (i.e. major trends)."
Disparity Index: The disparity index is a percentage measurement for the position of the current closing price of an asset relative to that asset's moving average. Traders commonly attribute this measurement to Steve Nison, based on his book Beyond Candlesticks.
The disparity index can take either a positive or a negative value. A positive value indicates that the asset's price is rapidly increasing, while a negative value indicates that the price is rapidly decreasing. A value of zero means that the asset's current price is exactly consistent with its moving average.
The disparity index crossing the zero line reflects an extremely rapid change in the trend of a given asset, and is therefore a strong early-warning indicator of the asset's increasing momentum.
Nison's book suggests that the disparity index can indicate whether an asset is overbought (in the case of a positive value) or oversold (in the case of a negative.) Since overbought and oversold assets are very vulnerable to rapid price reversals, the disparity index is a good indicator of when following the trend of a given asset might be a dangerous proposition.
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Uptrend Line
An uptrend line has a positive slope and is formed by connecting two or more low points. The second low must be higher than the first for the line to have a positive slope. Uptrend lines act as support and indicate that net-demand (demand less supply) is increasing even as the price rises. A rising price combined with increasing demand is very bullish, and shows a strong determination on the part of the buyers. As long as prices remain above the trend line, the uptrend is considered solid and intact. A break below the uptrend line indicates that net-demand has weakened and a change in trend could be imminent.
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![]() ![]() ![]() UPDATE; 5-1-22 courtesy of charting /\ wit tweezer top calls /\ Tony @Montana_Trades Really good study sheet on Candlestick Patterns [-chart]pbs.twimg.com/media/FRn8188XMAAdZvk?format=jpg&name=small[/chart] ![]()
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