STOCK IGNITION

Friday, April 28, 2006

The Dollar vs. Gold

There is a fly in the ointment of economic recovery: a dollar that just won’t seem to stop its fall. The impression that this trend portends something ominous is bolstered by the inverse relationship of the dollar’s value on international exchange and the price of gold. As the dollar has fallen in the last year, gold has risen. Meanwhile, US government officials repeat the refrain that they support a strong dollar. It seems that market forces have other ideas in mind.
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Friday, April 21, 2006

Multicollinearity

Multicollinearity is a statistical term for a problem that is common in technical analysis. That is, when one unknowingly uses the same type of information more than once. Analysts need to be careful and not utilize technical indicators that reveal the same type of information.

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|| Team Trading, 6:54 PM || link || (1) comments |

Thursday, April 20, 2006

Directional Movement - DMI

The + DI is about hit the 40 and the ADX (black) is touching the 20. I would like to see the ADX at the 30, this would confirm a stronger uptrend. I would look for the opposite to occur if I were looking at a downtrend


|| Team Trading, 8:42 PM || link || (2) comments |

Wednesday, March 08, 2006

Elliott Wave Theory Analysis for Trading

About Elliott Wave Theory
The Elliott Wave Theory is named after Ralph Nelson Elliott. Inspired by the Dow Theory and by observations found throughout nature, Elliott concluded that the movement of the stock market could be predicted by observing and identifying a repetitive pattern of waves. In fact, Elliott believed that all of man's activities, not just the stock market, were influenced by these identifiable series of waves.

Elliott based part his work on the Dow Theory, which also defines price movement in terms of waves, but Elliott discovered the fractal nature of market action. Thus Elliott was able to analyze markets in greater depth, identifying the specific characteristics of wave patterns and making detailed market predictions based on the patterns he had identified.More
|| Team Trading, 1:17 PM || link || (4) comments |

Wednesday, February 08, 2006

Technical Analysis

Technical analysis presupposes studying internal information of stock exchange. The word "technical" means studying the market itself, instead of external factors expressed in market dynamics. All necessary factors whatever they were could be reduced to stock exchange trading volume and stock price levels or, generally, to an amount of statistical information received as a result of market activities research.
The main concept, on which the technical analysis is built, is that price movement has already reflected all information, which is published in company reports and becomes an object of industry analysis and analysis of financial condition of the issuer only later.
Technical analysis followers support a view, according to which such internal market parameters as trading volume and price frequently disclose future directions of market development before they are realized through financial parameters. Technical analysis mostly reflects changes in supply and demand and reveals any shifts in this direction.
Technical analysis methodology is based on the assumption that there are historically formed laws existing at the stock exchange. If certain actions undertaken in the past have resulted in certain events in nine cases out of ten, it is rather probable that the same effect will be achieved in the future no matter when such actions are taken. It is necessary to stress, however, that methods used in technical analysis quite often bear empirical character.
The given description of technical indicators defines each of them, provides their mathematical expression, interpretation, and practical use in the market analysis.

ATR (Average True Range)DMI (ADX, DI+, DI-) (Directional Movement Indicator)EMA (Exponential Moving Average)Fast StochasticMACD (Moving Average Convergence/Divergence)MomentumRSI (Relative Strength Index)Slow StochasticSMA (Simple Moving Average)WMA (Weighted Moving Average)
|| Team Trading, 2:20 PM || link || (2) comments |

Friday, February 03, 2006

Analyzing Stocks [Investing Basics]

Investing, like most other things, requires that you have a general philosophy about how to do things in order to avoid careless errors. Would you make a souffle without a recipe? Would you play cello in the London Philharmonic Orchestra without sheet music? Would you aim a shuffleboard disk without figuring out whether you're trying to knock off your own color or your opponent's? We hope not. And while investing is not nearly as difficult as these other challenges (especially the souffle), you certainly need a considered plan before investing your hard-earned savings.
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|| Team Trading, 9:16 PM || link || (1) comments |

Friday, January 27, 2006

Positions

|| Team Trading, 7:56 PM || link || (0) comments |