ETF Screen. Market Harmonics - Nasdaq Sentiment Index. Getting Started With Trading. Implied Volatility in Options - The Options Playbook. Some traders mistakenly believe that volatility is based on a directional trend in the stock price.
Not so. By definition, volatility is simply the amount the stock price fluctuates, without regard for direction. As an individual trader, you really only need to concern yourself with two forms of volatility: historical volatility and implied volatility. (Unless your temper gets particularly volatile when a trade goes against you, in which case you should probably worry about that, too.) Historical volatility is defined in textbooks as “the annualized standard deviation of past stock price movements.”
Even if a $100 stock winds up at exactly $100 one year from now, it still could have a great deal of historical volatility. Figure 1: Historical volatility of two different stocks This chart shows the historical pricing of two different stocks over 12 months. Implied volatility isn’t based on historical pricing data on the stock. Figure 2: Normal distribution of stock price. Introduction To The Arms Index. The result of this formula can then be smoothed by using a logarithmic transformation - since a simple moving average produces a positive bias - to show historical trends.
The moving average is a popular tool, and is calculated by adding up the logarithm of each daily reading, dividing by the number of readings, and then taking the antilog of the result to come up with the final number. For short-term analysis and traders, it's suggested that a four or five-day moving average be used. Www.armsinsider.com/education/whatistrin/whatistrin.asp. What is the TRIN?
TRIN (by Arthur Hill) Richard Arms developed the TRIN, or Arms index, as a contrarian indicator to detect overbought and oversold levels in the market. The McClellan Oscillator & Summation Index - Technical Analysis Learning - McClellan Financial. Every day that stocks are traded, financial publications list the number of stocks that closed higher (advances) and that closed lower (declines).
The difference between these numbers is called the daily breadth. The running cumulative total of daily breadth is known as the Daily Advance-Decline Line. It is important because it shows great correlation to the movements of the stock market, and because it gives us another way to quantify the movements of the market other than looking at the price levels of indices. The second chart shows an example of the daily breadth. Each tick mark represents one day’s reading of advances minus declines. We use two different EMAs: one with a 10% smoothing constant, and one with a 5% smoothing constant. Investing. MACD - Moving Average Convergence Divergence - Technical Analysis. Kondratieff Waves... Crashed Our Economy! This article presents a divergent hypothesis from Tyler Cowen's lack of 'low hanging fruit' hypothesis for the current Stagnation (discussed in my previous post).
I was going to make one quick mention of a pure economics based thought that might have contributed to our current depression but it was based on an understanding inversion (see tiny writing below): The 1970s switch of Government policy away from Keynesian practises towards monetary policies that buffered the economy from depressions and recessions may have precipitated the financial crisis by their very success: economic fluctuations shake the wastage out of the system, forcing inefficient businesses to shut down, reform or lay off unproductive staff.
Keeping things steady just allowed more detritus to accumulate on the buckaroo donkey, saving all the pain for one big, inevitable mess... Well, actually that's complete nonsense! Bear Call Spread. Stock Screener - Overview. Phils Gang. Bull Put Spread - Tutorial. Bull Put Spread Description.
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Charles Schwab & Co., Inc., optionsXpress, Inc., and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Earnings Whispers. The Trading Methodologies of W.D. Gann: A Guide to Building Your Technical Analysis Toolbox > About the Author : Safari Books Online. Forex Calendar. Legend High Impact Expected Med Impact Expected Low Impact Expected Non-Economic Actual Pending Related Stories FF Alert Inside Revision Up Next Green NumberBetter than forecast -or- revised better Red NumberWorse than forecast -or- revised worse m/mMonth Over Month q/qQuarter Over Quarter y/yYear Over Year K Thousand M Million B Billion T Trillion Note: All times are approximate and subject to change Central Bank Rates.
Stock market trading and forex trading strategy - Article_page1. Are You Consistent?
Traders often get frustrated when they see the market doing the "unexpected. " This occurs because they have a pre-conceived idea of what the market "should do. " And when it doesn't behave according to their Wave Count, or their Gann calculations or their Fibonacci cluster or their indicators' clear signals ... well, they just get frustrated. This comes from a belief that the market has a pattern that is knowable and it should follow consistently. Gann. Wave59. Forex Calendar.