Technical Analysis
Relative Strength Indicator RSI
Compares the changes in the stocks' price to a particular index such as NASDAQ and determines whether the stock is doing better or worse than the average.
When the RSI line is going up, that means the stock is outperforming the market, when it heads down, the stock is doing worse than the overall market.
Stochastics
Measures the stock's price move against its own history.
a value of 20-30 means the stock is over sold. When the measure hits 70-80, the stok is overbought.
Candlestick Charting
The range of prices for the period is drawn as a line, with a box, or body tht represents the opening and losing prices. If the price went up during the day, the body is white, but if it dropped, the body is coloured black. The patterns that emerge are studied carefully to discover the underlying trend.
Moving Average Convergence/Divergence (MACD)
When a short term moving average is heading upwards and crosses over the line generated by the long term moving average, technical analysis onsider this a "bullish" signal and will consider the stock a candidate for purchase. THe upward trend is consideredover when the long term and short term averages cross again.
Compares the changes in the stocks' price to a particular index such as NASDAQ and determines whether the stock is doing better or worse than the average.
When the RSI line is going up, that means the stock is outperforming the market, when it heads down, the stock is doing worse than the overall market.
Stochastics
Measures the stock's price move against its own history.
a value of 20-30 means the stock is over sold. When the measure hits 70-80, the stok is overbought.
Candlestick Charting
The range of prices for the period is drawn as a line, with a box, or body tht represents the opening and losing prices. If the price went up during the day, the body is white, but if it dropped, the body is coloured black. The patterns that emerge are studied carefully to discover the underlying trend.
Moving Average Convergence/Divergence (MACD)
When a short term moving average is heading upwards and crosses over the line generated by the long term moving average, technical analysis onsider this a "bullish" signal and will consider the stock a candidate for purchase. THe upward trend is consideredover when the long term and short term averages cross again.