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.

Monday, October 24, 2011

Definition and Formula For BULL/BEAR RATIO

Interpretation


The Bull/Bear Ratio is a market sentiment indicator. Dr. Martin Zweig sums up sentiment indicators in his book Winning On Wall Street by saying, “Beware of the crowd when the crowd is too one-sided.” Extreme optimism on the part of the public and even professionals almost always coincides with market tops.Extreme pessimism almost always coincides with market bottoms.



Calculation:

The Bull/Bear Ratio is calculated by dividing the number of bullish advisors by the number of bullish plus bearish advisors. The number of neutral advisors is ignored.





High readings of the Bull/Bear Ratio are bearish (there are too many bulls) and low readings are bullish (there are not enough bulls). In almost every case, extremely high or low readings have coincided with market tops or bottoms. Historically, readings above 60% have indicated extreme optimism (which is bearish for the market) and readings below 40% have indicated extreme pessimism (which is bullish for the market).

Example:

The following chart shows the Bull/Bear Ratio and the S&P 500.


“Buy” arrows were drawn on the S&P 500 when the advisors were extremely bearish and “sell” arrows were drawn when advisors were extremely bullish.





Monday, October 17, 2011

Technical Analysis for .. ..Why?

How to investment in the stock market benefited from the technical Analysis.

What is Technical Analysis?

Technical Analysis is the study of supply and demand in the stock market, by comparing the history of stock price movements and volume (the number of shares traded).  Understanding the way the price moves in relation to the Open, High, Low and Closing Prices on a given minute, hour, day, week or month and comparing that to the volume can give an insight into future market direction.  The data required is usually displayed in a Stock Chart so it is easily consumed.


The science / art of technical analysis usually falls into different areas of study:

   1. Supply & Demand – Stock Price Movement vs Volume
   2. Trend Following – understanding what trends are
   3. Waves & Cycle Analysis – understanding how markets move
   4.Stock Charts – Price – plotting price in charts to understand the history of the Stock,
   5.Share or Market   Index using Bars, Candlesticks or Point and Figure Charting.
   6.Trend Interpretation – Drawing Trend Lines – Support and Resistance Lines

   7. Price Indicators – the study of price based chart indicators or Oscillators know as Stochastics,”Relative Strength Index” (RSI), “Rate of Change” (ROC), “Moving Averages” (MA), “Moving Average Convergence Divergence” (MACD), Parabolic SAR, ADX Average Direction Movement Index.

    8.Study of Volume – understanding how the level of volume has a relationship with price – and how price has a relationship with volume.

    9.Study of Price Volume Indicators – “On Balance Volume” (OBV), Chaikins Money Flow,
“Time Segmented Volume” (TSV), MoneyStream.

    10.Market Sentiment – understanding the madness of crowds

Saturday, October 15, 2011

ELLIOTT WAVE _ Triangles

Triangles appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility. Triangles contain five overlapping waves that subdivide 3-3-3-3-3 and are labeled a-b-c-d-e. A triangle is delineated by connecting the termination points of waves a and c, and b and d. Wave e can undershoot or overshoot the a-c line, and in fact, our experience tells us that it happens more often than not.

There are two varieties of triangles: contracting and expanding. Within the contracting variety, there are three types: symmetrical, ascending, and descending, as illustrated in Figure . There are no variations on the rarer expanding triangle. It always appears as depicted in Figure, which is why Elliott termed it a “reverse symmetrical” triangle.
Figure  depicts contracting triangles as taking place within the area of preceding price action, in what may be termed regular triangles. However, it is extremely common for wave b of a contracting triangle to exceed the start of wave a in what may be termed a running  triangle, as shown in Figure 1. Despite their sideways appearance, all triangles, including running triangles, effect a net retracement of the preceding wave at wave’s end.

Triangle
Examples Thereare several real life examples of triangles in the charts in this course. As you will notice, most of the subwaves in a triangle are zigzags, but sometimes one of the subwaves (usually wave c) is more complex than the others and can take the shape of a regular or expanded flat or multiple zigzag. In rare cases, one of the sub-waves (usually wave e) is itself a triangle, so that the entire pattern protracts into nine waves. Thus, triangles, like zigzags, occasionally display a development that is analogous to an extension. One example occurred in silver from 1973 through 1977.
Although upon extremely rare occasions a second wave in an impulse appears to take the form of a triangle, triangles nearly always occur in positions prior to the final actionary wave in the pattern of one larger degree, i.e., as wave four in an impulse, wave B in an A-B-C, or the final wave X in a double or triple zig-zag or combination.A triangle may also occur as the final actionary pattern in a corrective combination, although even then it always precedes the final actionary wave in the pattern of one larger degree than the corrective combination.
In the stock market, when a triangle occurs in the fourth wave position, wave five is sometimes swift and travels approximately the distance of the widest part of the triangle. Elliott used the word “thrust” in referring to this swift, short motive wave following a triangle. The thrust is usually an impulse but can be an ending diagonal. In powerful markets, there is no thrust, but instead a prolonged fifth wave. So if a fifth wave following a triangle pushes past a normal thrust measurement,it is signaling a likely protracted wave. Post-triangle advancing impulses in commodities at degrees above Intermediate are usually the longest wave in the sequence,
On the basis of our experience with triangles, as the example in Figure illustrates, we propose that often the time at which the boundary lines of a contracting triangle reach an apex coincides exactly with a turning point in the market. Perhaps the frequency of this occurrence would justify its inclusion among the guidelines associated with the Wave Principle.
The term “horizontal” as applied to triangles refers to these corrective triangles in general, as opposed to the term “diagonal”. Thus, the terms “horizontal triangle” and “diagonal triangle” denote these specific forms under the Wave Principle. The simpler terms “triangle” and “wedge” may be substituted, but keep in mind that technical chart readers have long used these terms to communicate less specifically subdivided forms defined only by overall shape. Having separate terms can be useful.
Corrective Combinations
Double and Triple Threes


Fig 1
Elliott called sideways combinations of corrective patterns “double threes” and “triple threes.” While a single three is any zigzag or flat, a triangle is an allowable final component of such combinations and in this context is called a “three.” A double or triple three, then, is a combination of simpler types of corrections, including the various types of zigzags, flats and triangles. Their occurrence appears to be the flat correction’s way of extending sideways action. As with double and triple zigzags, each simple corrective pattern is labeled W, Y and Z. The reactionary waves, labeled X, can take the shape of any corrective pattern but are most commonly zigzags.
Combination of threes were labeled differently by Elliott at different times, although the illustrative pattern always took the shape of two or three juxtaposed flats, as shown in Figures. However, the component patternsalways took the shape of two or three juxtaposed flats, as shown in Figures 1-45 and 1-46. However, the component patterns more commonly alternate in form. For example, a flat followed by a triangle is a more typical type of double three, as illustrated in Figure 1.
A flat followed by a zigzag is another example, as shown in Figure 1-48. Naturally, since the figures in this section depict corrections in bull markets, they need only be inverted to observe them as upward corrections in bear markets.
For the most part, double threes and triple threes are horizontal in character. Elliott indicated that the entire formations could slant against the larger trend, although we have never found this to be the case. One reason is that there never appears to be more than one zigzag in a combination. Neither is there more than one triangle. Recall that triangles occurring alone precede the final movement of a larger trend. Combinations appear to recognize this character and sport triangles only as the final wave in a double or triple three.

Monday, October 3, 2011

What to understand in Online Stock Market Investing!

Online investing on the stock market is one of the main ways to do a lot of money easily. But you need to know the basics of trading before jumping into the business world. Therefore, it is best to get educated about the stock market with low-cost courses before you get the business. As the stock market online is one of the easiest and most fun ways to earn money sitting at home, it was always conscious in front of manure. Stock market is very vulnerable market, and even if one day you can see a lot of wins, the next day you can see a small loss. So you have to be mentally ready for this business.

Basic Concept:

The basic concept behind the trade market share is as follows. You buy shares of a company. In that, you become a shareholder. The company uses the money to develop your business and then gives a portion of their profits. The other most common way to make money stock traders is when the fate of a company is growing. The continuous increase in the profits of an enterprise leads to an increase in its share price. That is when investors sell shares of stocks for a greater amount of money invested. Losses occur when the stock price goes down after an investor has bought.Investments in the stock market have become easier now because of stockbrokers online. Now you can trade stocks just sitting at home. All you have to do is find an online brokerage firms and create an account. You can set your financial goals and to buy and sell shares through an account. However, it is better to go with a company that has a good reputation in this field. Benefits The first major advantage of online stock trading is that you can see your account is 24 / 7 All the data warehouse will be on hand, and could also be made aware of information about the company, who have invested or plan to invest. Since that exchange reduces the fixed costs, it is also to reduce intermediation costs, varies mainly $ 7 and $ 10 for each trade.All you have to be a little sophisticated Internet and knowledge of trading strategies. However, if you need advice on your business, these online brokerage firms also make arrangements with financial advisors and other runners. You have more freedom over how you manage your inventory.

Take a look at these quick questions:

    Are you curious about buying stocks?
    Beginning to learn how to trade stocks online?
    Do you already have some experience?

If any of these sound like you, you're in the right place. Go ahead and take a look around. Don't have a lot of knowledge about stock trading yet? Don't worry. Take your time and browse through the different topics throughout this web site at your own pace. There's a lot of information here and there's no reason to rush.
Online Stock Trading Guide

To review, the main purpose of this web site is to provide quality educational information, tips and resources as a form of stock trading guide to help you form a good background in stock trading and at the same time make improvements over the long run.

You'll be able to find everything from stock market basics and money management to choosing an online broker, using stock charts, learning about different trading strategies and many other related topics.

The information you'll find will be provided and directed towards helping beginning through intermediate level investors and traders.

As you are reading and learning on this web site, please keep in mind that there is no "Holy Grail" method to be successful at stock trading. The goal is that you'll be able to use the information provided on this web site, combined with other investing knowledge that you gain to greatly improve your understanding of the stock market and be able to develop your own trading plan that produces consistent results.

With a good trading plan in place, you'll already be ahead of most beginning and even some experienced traders and investors. That's because most traders don't develop any type of trading plan and wind up losing their initial capital. They don't take the time to learn with some type of stock trading guide before they start.

Saturday, October 1, 2011

Importance of Stock Market quotes_How to investors to trade stocks

Stock prices are important for investors to know how a stock is bought or sold on the market. Without this information it would be almost impossible for investors to trade stocks bought and sold. Being able to see the offer of a selection of price / demand is what makes possible the investment in shares. If you need to call your agent by phone to ask, would a long time and may lose many opportunities to enter or exit at the right time. There would also be the possibility that the corridor is flooded with calls and can not respond to everyone. This could mean that you will not have access to trading in the market.


The exchanges around the world provide important stock market for investors in the stock market today. Information on stock prices is transmitted to the electronic communications network that allows investors to see the share price. ECN can provide some quotes from different systems and therefore more likely to sell or buy with other market participants. Technical analysis of stocks would be very difficult because he watched the movements of price and volume. Without stock charts detail the story of a company share prices, technical analysis would be less effective in predicting future movements.

When investors have a selection of equity, must know what the price is so that they can act effectively. Trading styles, such as scalping, swing trading or shaving should not be necessary, because they all require information on purchasing / work effectively. Stock market quotations are not always what we see today. Previously, investors were not able to say how the market moved on a daily basis. We cannot not tell if it was a bullish trend, down trend or a sideways trend but then they are usually invested in bonds as a way to make money because the stock market was not considered much appreciated. Over time, various indices started to add information such as the volume of trade and prices.

Professional traders who trade stocks, or work for a living have access to financial institutions dealing desk. This ensures that as soon gives way will be implemented immediately. Most retailers are normal accounts, which are directly linked to the ECNs, which are delayed stock quotes. Quotes may be delayed up to 15 minutes, in some cases, depending on your system, or ECN. Therefore, it is important to ask the broker to use ECN to ensure timely information.