Thursday, December 27, 2007
Chaikin oscillator
A Chaikin oscillator is formed by subtracting a 10-day exponential moving average from a 3-day moving average of the accumulation/distribution index. It can give various sell or buy signals, depending on the context and other indicators.
Accumulation/Distribution index
Accumulation/Distribution is a index which adds or subtracts each day's volume in proportion to where the close is between the day's high and low.
First a close location value is formed,
clv=(close-low)-(higj-low)/high-low
This ranges from -1 when the close is the low of the day, to +1 when it's the high. For instance if the close is 3/4 the way up the range then CLV is +0.5. The accumulation/distribution index adds up volume multiplied by the CLV factor, ie.
acc.dis=acc.dis(previous)+volum*clv
The name accumulation/distribution comes from the idea that during accumulation buyers are more and the price will increase through the day, or will make a recovery if sold down, in either case more often finishing near the day's high than the low. The opposite applies during distribution.
First a close location value is formed,
clv=(close-low)-(higj-low)/high-low
This ranges from -1 when the close is the low of the day, to +1 when it's the high. For instance if the close is 3/4 the way up the range then CLV is +0.5. The accumulation/distribution index adds up volume multiplied by the CLV factor, ie.
acc.dis=acc.dis(previous)+volum*clv
The name accumulation/distribution comes from the idea that during accumulation buyers are more and the price will increase through the day, or will make a recovery if sold down, in either case more often finishing near the day's high than the low. The opposite applies during distribution.
Trend
The first tool in technical analysis is the Trend.The trend may be positive or negative for a particular stock or to the whole market.A person who is watching the trend may buy a share if it raises or sell a share if it falls.
When will a share raise or fall can also be analysed with the tools of technical analysis.
Change in trend may be noted by MACD curve.Based upon this a person can decide to buy or sell as the trend may be.
When will a share raise or fall can also be analysed with the tools of technical analysis.
Change in trend may be noted by MACD curve.Based upon this a person can decide to buy or sell as the trend may be.
Introduction
Technical analysis is the study of market action mainly with the use of charts, for seeing any change in the price of the shares in future.
Here mainly the price of the share,Volume etc are taken into consideration without considering the fundamentals of that particular company.Though technical analysis is not related with the fundamentals of the company, in some instances it may also reflect the fundamental changes since without these a particular stock price may not move or suddenly the volume may not increase.
There are lot of tools to analyse it.
Here mainly the price of the share,Volume etc are taken into consideration without considering the fundamentals of that particular company.Though technical analysis is not related with the fundamentals of the company, in some instances it may also reflect the fundamental changes since without these a particular stock price may not move or suddenly the volume may not increase.
There are lot of tools to analyse it.
Wednesday, December 26, 2007
Technical Analysis of Shares
Technical analysis of shares needs different tools.There are lot of ways of analysing the share movements.Each of these methods will be described in this site.
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