ELLIOTT WAVE

A flat correction differs from a zigzag in that the subwave sequence is 3-3-5, as shown in Figures 1 and 2. Since the first actionary wave,

Fibonacci studies: arcs, fans, retracements, and time

Overview: Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered..

Indicator

The Negative Volume Index (“NVI”) focuses on days where the volume decreases from the previous day. The premise being that the “smart money” takes positions on days when volume decreases

Basic Technicals

MACD technical analysis MACD technical analysis stands for moving average convergence/divergence analysis of stocks.

Fundamental Analysis

Doubling Stocks Review: Is this a scam? If you are looking for the truth about doubling stocks this is a necessity. One always thought there was something wrong with a doubling of stocks.

Friday, January 15, 2010

WILLIAM’S ACCUMULATION/DISTRIBUTION

Accumulation is a term used to describe a market controlled by buyers; whereas distribution is defined by a market controlled by sellers.
Interpretation
Williams recommends trading this indicator based on divergences:
1.Distribution of the security is indicated when the security is making a new high and the A/D indicator is failing to make a new high. Sell.
2.Accumulation of the security is indicated when the security is making a new low and the A/D indicator is failing to make a new low. Buy.
Example
The following chart shows Proctor and Gamble and the Williams’ Accumulation/Distribution indicator.

A bearish divergence occurred when the prices were making a new high (point “A2″) and the A/D indicator was failing to make a new high (point “A1″). This was the time to sell.
Calculation
To calculate Williams’ Accumulation/Distribution indicator, first determine the True Range High (“TRH”) and True Range Low (“TRL”).

Today’s accumulation/distribution is then determined by comparing today’s closing price to yesterday’s closing price.
If today’s close is greater than yesterday’s close:

If today’s close is less than yesterday’s close:
If today’s close is equal to yesterday’s close:

The Williams’ Accumulation/Distribution indicator is a cummulative total of these daily values.

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INDICATOR_WEIGHTED CLOSE

The Weighted Close indicator is simply an average of each day’s price. It gets its name from the fact that extra weight is given to the closing price. The Median Price and Typical Price are similar indicators.
Interpretation
When plotting and back-testing moving averages, indicators, trendlines, etc, some investors like the simplicity that a line chart offers. However, line charts that only show the closing price can be misleading since they ignore the high and low price. A Weighted Close chart combines the simplicity of the line chart with the scope of a bar chart, by plotting a single point for each day that includes the high, low, and closing price.
Example
The following chart shows the Weighted Close plotted on top of a normal high/low/close bar chart of People soft.

Calculation
The Weighted Close indicator is calculated by multiplying the close by two, adding the high and the low to this product, and dividing by four. The result is the average price with extra weight given to the closing price.

Courtesy Copyright ©2003 Equis International.This content copyrights protected by Equis.com