Mark, can you please give us a TA, wehat was the terms that one uses; the RSI, the M.A., and that words we all know all to well...the STOCKASSTICS!
Chuca-Au, I almost forgot...we have been dointhathere...on GPGI
Define:
Definition: The Stochastics oscillator was developed by Dr. George Lane. It is based on the premise that during an upward trading market, prices tend to close near their high, and during a downward trading market, prices tend to close near their low. The stochastic indicator is plotted as two lines, the fast Stochastics(%K) and the slow Stochastics(%D). The range of the Stochastics is between 0 and 100.
Interpretation: Dr.Lane believes the most important signal is a divergence between %D and the price. An overbought market occurs when %D makes a series of lower highs while the price makes a series of higher highs. An oversold market occurs when the price makes a series of lower lows while %D makes a series of higher lows.
There are two basic signals:
%D below 20 and crossover of the %K line over %D line is a bullish signal.
%D above 80 and crossover of the %K line over %D line is a bearish signal.
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DEFINE-RSI
Definition: Relative Strength Index(RSI) is an overbought/oversold oscillator which measures a stock's price relative to itself.The value of RSI is between 0 and 100;
Interpretation: Conventionally, buy signals are triggered when RSI is in oversold (20-30) area, and sell signals are triggered when RSI is in overbought (70-80) area. RSI works better in a non-trending market than in a market with a clear and established trend.
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DEFINE -Momentum:
Definition: Momentum is an overbought/oversold indicator which measures the rate of change in price as opposed to price itself. It is calculated by subtracting the price of a period ago, from the price now.
Interpretation: Conventionally, the market is overbought when momentum is positive and oversold when momentum is negative.
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DEFINE VOLUME OF ala Zeev, M.A.:
Definition: Moving Average (MA) is perhaps the oldest and the most widely used technical indicator. It is an excellent technique to filter out the market noise and to uncover trends. The average is calculated by adding a set of data,then dividing the sum by the period.
Although many different time periods are commonly used, 21 days is considered appropriate for short-term trading and 50 days for intermediate-term trading. For long-term trend analysis, most analysts prefer a 200-day average.
Interpretation: Moving averages work best in trending markets. A moving average can be used to uncover the market trend. Multiple moving averages can be used to generate buy and sell signal when they cross each other.
When the short term MA moves across the long term MA and both slopes go up, it's a bullish signal.
When the short term MA moves across the long term MA and both slopes go down, it's a bearish signal.
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Link wont do GPGI, just my Bank of Boston:
207.95.154.130 |
