EURO UPDATE PRESENTED BY UIS
EUROPE WOES CONTINUE DESPITE "AGREEMENT" Italian bond auction on Friday instills fear in
investors
Italian bond rate at 6.1% as of Monday 10/31
Greece's prime minister said he would call a national
vote on an unpopular European plan to rescue that nation's economy. "The people come first, not finances“ Protesters descend on G20
Volatility Index (VIX) Shows the market's expectation of 30-day volatility.
It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".
VIX cont…
Introduction to Technical Analysis BY EVAN FRISCIA AND PARTH THAKKAR
What is Technical Analysis Technical analysis is a security analysis discipline for
forecasting the direction of prices through the study of past market data, primarily price and volume. Technical Analysts look at the CHARTS to make a
prediction about the FUTURE!
Tenets of Technical Analysis
Market Action Discounts Everything Prices Move in Trends History Tends to Repeat Itself
Chart Types Bar Chart Line Chart Japanese Candle Chart
Bar Chart
Line Chart
Candlestick Chart
Candlestick Chart
Directions a Trend can take Up Trend
Down Trend
Horizontal Trend/Sideways or No Trend
Lengths of Trends Long term 9 months or longer Intermediary 3 months to a 9 months, but no longer than a year Short term Days to weeks, but no longer than 3 months
Uptrend A series of higher peaks and higher troughs on a
price chart.
Down Trend A series of lower peaks and lower troughs on the
price chart
Horizontal Trend/Sideways or No Trend A series of relatively similar peaks and troughs.
Support Support is an imaginary price level that is difficult
for a stock to move below because there are so many investors willing to buy at that level. It may be a horizontal or diagonal price level.
Support
Resistance Resistance is the opposite of support. It is an
imaginary price level that is difficult for a stock to penetrate on the upside. It may be either a horizontal or diagonal price level. Resistance is created when the bears gain enough momentum to overwhelm the bulls and stop or reverse upward movement.
Resistance
Channels
MACD An indicator frequently used in technical analysis
showing the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.
MACD Application Observe the Crossovers
MACD Application Observe the Crossovers
MACD Application Observe the Crossovers
Relative Strength Indicator A technical momentum indicator that compares the
magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 - 100/(1 + RS*) *Where RS = Average of x days' up closes / Average of
x days' down closes
Relative Strength Indicator Application Observe when the RS crosses above the 70 line and
below the 30 line
Relative Strength Indicator Application Observe when the RS crosses above the 70 line and
below the 30 line
Relative Strength Indicator Application Observe when the RS crosses above the 70 line and
below the 30 line
Stochastic Oscillator A technical momentum indicator
that compares a security's closing price to its price range over a given time period The theory behind this indicator is
that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low.
Stochastic Oscillator Application Observe when the stochastic lines cross the bounding
lines (just like RSI)
Stochastic Oscillator Application Observe when the stochastic lines cross the bounding
lines (just like RSI)
Stochastic Oscillator Application Observe when the stochastic lines cross the bounding
lines (just like RSI)
Questions