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Daily Candlestick Chart for MEEC
[img]stockcharts.com/c-sc/sc?s=MEEC
$VUNCF BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=VUNCF
Focus on Price
If the objective is to predict the future price, then it makes sense to focus on price movements. Price movements usually precede fundamental developments. By focusing on price action, technicians are automatically focusing on the future. The market is thought of as a leading indicator and generally leads the economy by 6 to 9 months. To keep pace with the market, it makes sense to look directly at the price movements. More often than not, change is a subtle beast. Even though the market is prone to sudden knee-jerk reactions, hints usually develop before significant moves. A technician will refer to periods of accumulation as evidence of an impending advance and periods of distribution as evidence of an impending decline.
Daily Candlestick Chart for APDN
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$VUZI BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=VUZI
Daily Candlestick Chart for VTSI
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Accumulative Swing Index: The accumulative swing index, or ASI, is a tool developed by J. Welles Wilder to measure the breakout potential of a given market.
The ASI takes the form of a number from 100 to -100, with positive values indicating an upward trend and negative values indicating a downward trend. Once calculated, the ASI can be charted in conjunction with a candlestick chart. The chief value of the ASI is that it's susceptible to the same technical analysis tools as a candlestick chart, allowing traders to use trendlines, wedges, triangles and other tools in order to determine support and resistance levels. However, ASI charts are much simpler and smoother than candlestick charts, making them both easier to analyze and less susceptible to indicating false breakouts. If the absolute value of the ASI for a given day exceeds the absolute value of the ASI at the time of a previous breakout, a new breakout from the trend is imminent, and traders can take positions accordingly.
The ASI is based on Wilder's swing index, which is an extremely complex calculation that incorporates high, low and close prices for an asset along with numerous other variables, some of them specific to certain kinds of markets. On its own, the swing index isn't particularly useful as a predictive tool, but the swing indexes for several successive days can be incorporated by another calculation into the ASI, which fulfills Wilder's original intention for the measure. Full instructions for calculating the swing index and ASI are available in Wilder's "New Concepts in Technical Trading Systems", and a number of popular pieces of trading software are able to calculate the ASI automatically.
$NTRR BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=NTRR
Daily Candlestick Chart for MRVKF
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Value Spotting as a Strength of Fundamental Analysis
Sound fundamental analysis will help identify companies that represent a good value. Some of the most legendary investors think long-term and value. Graham and Dodd, Warren Buffett and John Neff are seen as the champions of value investing. Fundamental analysis can help uncover companies with valuable assets, a strong balance sheet, stable earnings, and staying power.
$UNGS BarChart Trader's Cheat Sheet
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Daily Candlestick Chart for PSYC
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Binary Options: In finance, binary option (also called fixed return option, all or nothing or digital option)is a type of option where the payoff is either some fixed amount of some asset or nothing at all.[1] Binary options have been available since the middle of 2008. Binary options are trading options that pay out a pre-set and fixed amount if the underlying asset on which the option is based reaches the trader’s selected ‘direction’ (up or down compared with advertised value at the time of purchasing that option) at expiry time.[2]
The Binary Option is a prediction on which way the price of a stock, commodity, index or foreign currency will move by a designated expiration time. Traders can never purchase or own the asset, they can only predict the direction that the asset will go. There are only two possible outcomes and the price of the asset does not matter, all that matters is if the prediction was correct or incorrect.
$XCHO BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=XCHO
Chart Patterns ~ An Oldie but Goodie
Much of our understanding of chart patterns can be attributed to the work of Richard Schabacker. His 1932 classic, Technical Analysis and Stock Market Profits, laid the foundations for modern pattern analysis. In Technical Analysis of Stock Trends (1948), Edwards and Magee credit Schabacker for most of the concepts put forth in the first part of their book. We would also like to acknowledge Messrs. Schabacker, Edwards and Magee, and John Murphy as the driving forces behind these articles and our understanding of chart patterns.
Pattern analysis may seem straightforward, but it is by no means an easy task. Schabacker states:
The science of chart reading, however, is not as easy as the mere memorizing of certain patterns and pictures and recalling what they generally forecast. Any general stock chart is a combination of countless different patterns and its accurate analysis depends upon constant study, long experience and knowledge of all the fine points, both technical and fundamental, and, above all, the ability to weigh opposing indications against each other, to appraise the entire picture in the light of its most minute and composite details as well as in the recognition of any certain and memorized formula.
Even though Schabacker refers to "the science of chart reading", technical analysis can at times be less science and more art. In addition, pattern recognition can be open to interpretation, which can be subject to personal biases. To defend against biases and confirm pattern interpretations, other aspects of technical analysis should be employed to verify or refute the conclusions drawn. While many patterns may seem similar in nature, no two patterns are exactly alike. False breakouts, bogus reads and exceptions to the rule are all part of the ongoing education.
Careful and constant study are required for successful chart analysis. On the AMZN chart above, the stock broke resistance from a head and shoulders reversal. While the trend is now bearish, analysis must continue to confirm the bearish trend.
Some analysts might have labeled the NVLS chart as a head and shoulders pattern with neckline support around 17.50. Whether or not this is robust remains open to debate. Even though the stock broke neckline support at 17.50, it repeatedly moved back above its support break. This refusal might have been taken as a sign of strength and justified a reassessment of the pattern.
Daily Candlestick Chart for GGABF
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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.
$HBRM BarChart Trader's Cheat Sheet
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Diamond: The diamond formation, more commonly known as a diamond top, is a relatively rare chart formation used in technical analysis. When a diamond top forms, it forms at the conclusion of a long uptrend in price, and it indicates an imminent reversal of the trend. As such, the diamond top formation generates a very strong sell signal.
Traders and technical analysts recognize a diamond formation by first recognizing a head-and-shoulders formation (a peak and trough, followed by a higher peak and another trough, followed by a peak somewhere below the level of the previous peak: in other words, three peaks, the middle one being the tallest.) Four trendlines are drawn: one (ascending) from the first peak to the second peak, one (descending) from the second peak to the third peak, one (ascending) from the second trough to the low of the third peak, and one (descending) from the first trough to the second trough. The four lines altogether form a rough diamond shape, giving the chart its name.
The diamond top forms an overall descending trend channel, allowing traders to determine levels of support and resistance for the asset's price as it enters a downtrend or a momentary reversal. However, if the lower support line of the channel is broken, traders consider it likely that asset prices will reverse and begin again to climb.
Daily Candlestick Chart for MOJO
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$DGRI BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=DGRI
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).
Drawdown: Drawdown is a measure of peak-to-trough decline, usually given in percentage form. In trading, drawdown refers to the reduction in your trading account from a trade or a series of trades.
For instance, your trading account is initially at $10,000 then you lost $2,500 today and $2,500 the next day. Your account would then be at $5,000 and you would’ve had a 50% drawdown. In other words, a drawdown measures how much you’ve lost before you get your account back to par. But with a $5,000 remaining balance, you’d need to win another $5,000 to bring your account back to breakeven … That’s a 100% gain!
Knowing your trade’s drawdown is an important part of risk management. Traders usually take note of their maximum drawdown, which is the largest top-to-bottom loss incurred under a trading strategy. While “Maximum Drawdown” sounds like your typical summer blockbuster movie, it ain’t cool since it basically measures your biggest losing streak!
Daily Candlestick Chart for CIIC
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$MMTIF BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=MMTIF
Bretton Woods Agreement of 1944: The Bretton Woods Agreement is a pact that was made all the way back in the 1940's by the economic powers at that time to stabilize currencies. What it did was establish a fixed exchange rate for currencies in terms of gold to make trade among nations easier. This kind of exchange rate system lasted until 1971, before the US finally decided to end the convertibility of the dollar to gold.
Daily Candlestick Chart for ELTP
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Staples/Discretionary Ratio
Chartists can also compare the performance of the consumer discretionary sector to the consumer staples sector for clues on the economy. Stocks in the consumer discretionary sector represent products that are optional. These industry groups include apparel retailers and produces, shoe retailers and produces, restaurants and autos. Stocks in the consumer staples sector represent products that are necessary, such as soap, toothpaste, groceries, beverages and medicine. The consumer discretionary sector tends to outperform when the economy is buoyant and growing. This sector underperforms when the economy is struggling or contracting.
Chartists can compare the performance of these two with a simple ratio chart of the Consumer Discretionary SPDR (XLY) divided by the Consumer Staples SPDR (XLP). The chart above shows this ratio with the S
$ORGN BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=ORGN
Elder Impulse System Introduction
The Elder Impulse System was designed by Alexander Elder and featured in his book, Come Into My Trading Room. According to Elder, "the system identifies inflection points where a trend speeds up or slows down". The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram. The moving average identifies the trend, while the MACD-Histogram measures momentum. As a result, the Impulse System combines trend following and momentum to identify tradable impulses. This unique indicator combination is color coded into the price bars for easy reference.
Calculation
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Price bars are colored blue when conditions for a Red Price Bar or
Green Price Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
Green price bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising. A red price bar indicates that the bears have taken control because the 13-day EMA and MACD-Histogram are falling. A blue price bar indicates a split or equilibrium between buying and selling pressure.
Bank of Japan (BOJ) Monetary Policy Meeting and Announcement: Release schedule : No set time, usually between 2:00 and 4:00 (GMT); monthly, in the middle of the month
Source of report : Bank of Japan
Web Address : http://www.boj.or.jp/en/index.htm
Address of Release : http://www.boj.or.jp/en/theme/seisaku/kettei/index.htm
Schedule of Meetings : http://www.boj.or.jp/en/theme/seisaku/index.htm
Daily Candlestick Chart for USPR
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$MKRYF BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=MKRYF
Bearish Reversal Candlestick Patterns: The Bearish Reversal Candlestick Pattern comes in over 12 different forms. These include the Abandoned Baby, the Bearish Engulfing Pattern, the Harami, the Dark Cloud Cover, the Evening Star and the Shooting Star. Bearish Reversal Candlestick Patterns should form in an uptrend and most will require Bearish Confirmation as reinforcement of the pattern. Use additional anaylsis to further support your findings.
Daily Candlestick Chart for PSID
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$DEEL BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=DEEL
Depression: The simple definition of a depression is a large scale recession that lasts an extended period of time. Some define a depression as a scenario where real GDP drops by over 10%. Another way to differentiate it from a recession is the period of time. Recessions are said to typically last one year while an economic depression lasts several years.
The term “depression” comes from the Great Depression of the 1930s. Before that event, any modest decline in economic activity was considered to be a depression. The term recession was then used to describe smaller economic downturns while the depression was used to describe major, longer lasting declines like the Great Depression.
Irrational Exuberance
In Irrational Exuberance, Robert Shiller argues that high stock market valuations in 2000 and 2005 were unjustified. The book starts with historic valuations based on PE ratios. Shiller shows that valuations in these two periods were well above those seen at prior peaks in 1901, 1929 and 1966. This book however, is not about valuation. Instead, the author identifies a series of factors that brought about these speculative excesses. The meat of the book lists 12 factors that facilitated big market moves from 1995 to 2000 and from 2002 to 2005. Shiller then goes on to explain the mechanisms that amplified these factors. The book also covers cultural and psychological influences that further contribute to irrational decision making when it comes to making investments. After explaining our attempts to rationalize this irrational behavior, Shiller then offers some solutions to prevent future speculative bubbles.
Taking its title from Alan Greenspan's famous description of the stock market in 1996, Irrational Exuberance was first published in 2000 and coincided with the Nasdaq peak that same year. Needless to say, the timing was most prophetic. The second edition was published in 2005 with the S
Daily Candlestick Chart for SUTI
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$VTSI BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=VTSI
Bubbles
Robert Shiller identified several credible factors that influenced investment decisions during the bubble years. Many of these factors exist today and his analysis provides food for thought when considering behavioral finance. Not all factors or influences are listed in this article. Shiller offers more factors and detailed evidence in the book. After examining efficient markets, random walks, bubbles and investor attitudes, Shiller also offers several remedies to contain "speculative volatility in a free society".
Behavior finance can help us understand what is happening, but understanding may not help with making money in the stock market. While the first edition coincided with the stock market peak in 2000, the stock market rose another 30% after the second edition was published in February 2005. There is an argument to be made for historical valuations, but markets can remain irrational a lot longer than traders can remain solvent. In other words, one would have left a lot of money on the table by selling in early 2005 or one would have gone broke shorting stocks in early 2005. To his credit, Shiller does provide evidence of past mispricing in the stock market. It can and does happen.
Furthermore, who is to say how much a stock is actually worth? The value of any asset is only what someone is willing to pay for it. Valuations are set everyday as stocks change hands on Wall Street. Just as prices trend, valuations also trend from overvaluation to undervaluation. Sometimes these trends get extreme on both sides. Stocks were severely overvalued in early 2000 and severely undervalued in March 2009. It would appear that some sort of timing mechanism is needed to avoid the big declines and participate in the big advances. Hmm… sounds like technical analysis!
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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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02-07-2021
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