Samstag, 30. Juni 2007

Basics: Technical Indicators

Technical indicators can be divided into three groups. Trend following indicators help to identify trends. oscilators help find turning points. Other indicators show the general changes in the mass pyschology.
  • trend-following indicators
    • If markets are moving trend-following indicators work best but gives false signals when the markets are flat.
    • include moving averages, MACD, Accumulation/Distribution, and others
    • they turn after the trend reverse (conincident/lagging indicators)
  • oscillators
    • If markets are flat, oscillators can help to identify turning points but gives false signals when the markets began to trend.
    • include stochastic, ROC, Momentum, RSI, Elder-ray, force index, W %R, commodity channel index and others.
    • they turn ahead of prices (coincident/leading indicators)
  • and other indicators
    • put/call ratio, new highs , new lows etc...
For more information about the indicators visit the following sites
[1] investpedia active trading
[2] Dow Jones Theory video (german)
[3] Stock Charts
[4] Trading for a living, Dr.Alexander Elder

Sonntag, 17. Juni 2007

EARNINGS CYCLE


Companies report their earningn every 3 months. It is proven that earning suprises rises stock price. You can see the earnings announcments by check the earnings calendar of http://www.bloomberg.com/apps/ecal

90% of the companies report their earnings 6 weeks after the quarter.

References:
[1] http://www.decisionpoint.com/tacourse/Earnings.html