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.

Tuesday, November 29, 2011

ELLIOTT WAVE _ Flats (3-3-5)

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, wave A, lacks sufficient downward force to unfold into a full five waves as it does in a zigzag, the B wave reaction, not surprisingly, seems to inherit this lack of counter-trend pressure and terminates near the start of wave A. Wave C, in turn, generally terminates just slightly beyond the end of wave A rather than significantly beyond as in zigzags.
In a bear market, the pattern is the same but inverted, as shown in Figures 2 and 3.

Flat corrections usually retrace less of preceding impulse waves than do zigzags. They participate in periods involving a strong larger trend and thus virtually always precede or follow extensions. The more powerful the underlying trend, the briefer the flat tends to be. Within impulses, fourth waves frequently sport flats, while second waves do so less commonly.

What might be called “double flats” do occur. However, Elliott categorized such formations as “double threes,”.

The word “flat” is used as a catchall name for any A-B-C correction that subdivides into a 3-3-5. In Elliott literature, however, three types of 3-3-5 corrections have been identified by differences in their overall shape. In a regular flat correction, wave B terminates about at the level of the beginning of wave A, and wave C terminates a slight bit past the end of wave A, as we have shown in Figures 1 through 2. Far more common, however, is the variety called an expanded flat, which contains a price extreme beyond that of the preceding impulse wave. Elliott called this variation an “irregular” flat, although the word is inappropriate as they are actually far more common than “regular” flats.

Tuesday, November 22, 2011

Stock Reviews Doubled

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. It is so cheap. We know that not everyone can make money for their newsletter. Still, it is very good. One keeps wondering why they do this. What does it do for them? At first I thought of buying their own picks prior to their release. Then when they start to buy subscribers, the prices has gone up and sells (pump and then dump). However, it is relieving to say that there seems to be the case.
 So what is their motivation and where is it? But where did the money come from to buy it? Are they just fabulously rich and share with the world? I am an optimist, but I never believed that to be true. That is when I found Doubling Stocks recommendations are biased. Not all, but enough. They are paid to promote certain penny stocks; they do not accept shares for payment, they paid in hard cash $ 75,000 for most of the stocks they promote. Just read the fine print.

But Doubling Stocks does not seem to value their reputation, so as not to promote any penny stock to anyone who has the money to pay them. Stocks are worth it for me to promote and provide long-range promise. So again do your homework, research, technical analysis, and managed through, before deciding whether to promote it. The end result is still pretty solid choice. Even so, I was concerned for approval and action to promote penny stocks. Initially, he made me want to run away and stop listening to their advice. You see, we are always thinking of being involved in a position that was promoted was a bad thing.

Apparently I was wrong. I started watching the stocks doubling stocks they were promoting, and actually found the system uses it – and it works almost always. Because they have worked so hard to make sure that the companies involved are in the earth, even those who do not go as planned are not losers’ media. Now, I have the pleasure of the people for promotion. With this simple system, it really makes things easy for me. I no longer spend hours, days or even weeks trying to find the right material to invest in what I did. And my success rate has skyrocketed. Only takes me about an hour a week to do my research, my choice to buy the shares.

Friday, November 18, 2011

Moving Average Convergence-Divergence (MACD)


Introduction:

Developed by Gerald Appel in the late seventies, Moving Average Convergence-Divergence (MACD) is one of the simplest and most effective momentum indicators available. MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, MACD offers the best of both worlds: trend following and momentum. MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences to generate signals. Because MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels.

Calculation:

MACD: (12-day EMA – 26-day EMA)
Signal Line: 9-day EMA of MACD
MACD Histogram: MACD – Signal Line

Standard MACD is the 12-day Exponential Moving Average (EMA) less the 26-day EMA. Closing prices are used for these moving averages. A 9-day EMA of MACD is plotted along side to act as a signal line to identify turns in the indicator. The MACD-Histogram represents the difference between MACD and its 9-day EMA, the signal line. The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA.


Interpretation:

As its name implies, MACD is all about the convergence and divergence of the two moving averages. Convergence occurs when the moving averages move towards each other. Divergence occurs when the moving averages move away from each other. The shorter moving average (12-day) is faster and responsible for most MACD movement. The longer moving average (26-day) is slower and less reactive to price changes in the underlying security.
MACD oscillates above and below the zero line, which is also known as the centerline. These crossovers signal that the 12-day EMA has crossed the 26-day EMA. The direction, of course, depends on direction of the moving average cross. Positive MACD indicates that the 12-day EMA is above the 26-day EMA. Positive values increase as the shorter EMA diverges further from the longer EMA. This means upside momentum is increasing. Negative MACD indicates that the 12-day EMA is below the 26-day EMA. Negative values increase as the shorter EMA diverges further below the longer EMA. This means downside momentum is increasing.


In the example above,

The yellow area shows MACD in negative territory as the 12-day EMA trades below the 26-day EMA. The initial cross occurred at the end of September (black arrow) and MACD moved further into negative territory as the 12-day EMA diverged further from the 26-day EMA. The orange area highlights a period of positive MACD, which is when the 12-day EMA was above the 26-day EMA. Notice that the 12-day EMA remained below 1 during this period (red dotted line). This means the distance between the 12-day EMA and 26-day EMA was less than 1 point, which is not a big difference.

Wednesday, November 16, 2011

how do we truly know if support and resistance was broken?

Support and Resistance

Support and resistance is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea on how you should measure support and resistance.


This zigzag pattern is making its way up (bull market). When the market moves up and then pulls back, the highest point reached before it pulled back is now resistance.

As the market continues up again, the lowest point reached before it started back is now support. In this way resistance and support are continually formed as the market oscillates over time. The reverse is true for the downtrend.

Plotting Support and Resistance

One thing to remember is that support and resistance levels are not exact numbers.

Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. With candlestick charts, these "tests" of support and resistance are usually represented by the candlestick shadows.

Support holding at 4725

How the shadows of the candles tested the 4725 support level. At those times it seemed like the market was "breaking" support. In hindsight we can see that the market was merely testing that level.
 

So how do we truly know if support and resistance was broken?

There is no definite answer to this question. Some argue that a support or resistance level is broken if the market can actually close past that level. However, you will find that this is not always the case.


Example:The price actually closed past the 4725 support level.

In this case, price had closed below the 4725 support level but ended up rising back up above it.If you had believed that this was a real breakout and sold this pair, you would've been seriously hurtin'!

Looking at the chart now, you can visually see and come to the conclusion that the support was not actually broken; it is still very much intact and now even stronger.To help you filter out these false breakouts, you should think of support and resistance more of as "zones" rather than concrete numbers.

One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick chart. The reason is that line charts only show you the closing price while candlesticks add the extreme highs and lows to the picture.

Tuesday, November 15, 2011

Stocks and Bonds: What’s the Difference?

Stocks and Bonds: What’s the Difference?

Money is an essential part of life. We work and earn money for the comforts of life, educate our children and to increase our standard of living and so on. It is our human nature compels us to try to make money fast and hard. The fact that this greed, people invest their hard earned money in the stock market. Two popular financial instruments that most of us have heard about are the stocks and bonds. These two instruments are very popular among the masses. The idea behind these instruments is to provide an opportunity to invest their money in a particular company and become its investors to maximize their future profits. Both instruments are a good investment alternative for the money, but both have different roles to play in the stock market.


Bonds: 

What are the obligations? The answer to this question can be explained by the concept of loans. When you buy a bond, you are actually lending your money to the issuing party. Now this package will give you for your interest in the future. The value of bonds depends on market interest rate on this scenario. Bonds available for sale and purchase on the stock market opened. The value of money invested in bonds, which actually comes from the interest that investors earn on bonds. If you have a link that will attract interest of 4% and overall rates market interest is 3%, so you can sell the shares on the stock with a value higher than you actually bought it for.

Stocks:

What are the Stocks? Stocks are shares of companies. An investor can invest in stocks to become part owner of the company. The Stocks reflect the stability of a company and an investor in order to avoid risks, to invest in the shares of the company that is reliable and stable. The shares are available in three categories, namely small-cap stocks and mid-large cap. These categories determine their roles in society.

Investors are aware that the stock market is quite risky, but if it is your advantage, he can shower and huge profits for you. New stock markets shows that long-term investments in stocks to outperform other asset classes. But on the other hand, during the volatile stock market conditions, people go to buy bonds in companies incorporated and because the bonds can adjust risk. Financial experts suggest that the bonds for stocks are not wise. Instead, investors should be more active and they need to examine how a type of instrument relates to another in terms of profitability and risk.

Saturday, November 12, 2011

Fibonacci studies: arcs, fans, retracements, and time zones.

Overview:

Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of Gizeh in Egypt.

Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers:

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 610, etc.These numbers possess an intriguing number of interrelationships, such as the fact that any given number is approximately 1.618 times the preceding number and any given number is approximately 0.618 times the following number. The booklet Understanding Fibonacci Numbers by Edward Dobson contains a good discussion of these interrelationships.

Interpretation:

There are four popular Fibonacci studies: arcs, fans, retracements, and time zones. The interpretation of these studies involves anticipating changes in trends as prices near the lines created by the Fibonacci studies.

Arcs:

Fibonacci Arcs are displayed by first drawing a trendline between two extreme points, for example, a trough and opposing peak. Three arcs are then drawn, centered on the second extreme point, so they intersect the trendline at the Fibonacci levels of 38.2%, 50.0%, and 61.8%.The interpretation of Fibonacci Arcs involves anticipating support and resistance as prices approach the arcs. A common technique is to display both Fibonacci Arcs and Fibonacci Fan Lines and to anticipate support/resistance at the points where the Fibonacci studies cross.

Note that the points where the Arcs cross the price data will vary depending on the scaling of the chart, because the Arcs are drawn so they are circular relative to the chart paper or computer screen.The following British Pound chart illustrates how the arcs can provide support and resistance (points “A,” “B,” and “C”).

Fans:

Fibonacci Fan Lines are displayed by drawing a trendline between two extreme points, for example, a trough and opposing peak. Then an “invisible” vertical line is drawn through the second extreme point. Three trendlines are then drawn from the first extreme point so they pass through the invisible vertical line at the Fibonacci levels of 38.2%, 50.0%, and 61.8%.. (This technique is similar to Speed Resistance Lines.)
The following chart of Texaco shows how prices found support at the Fan Lines.

You can see that when prices encountered the top Fan Line (point “A”), they were unable to penetrate the line for several to the bottom Fan Line (points “B” and “C”) before finding (point “C”), they rose freely to the top line (point “D”) where rebounded.

Retracements:

Fibonacci Retracements are displayed by first drawing a trendline between two extreme points, for example, a trough intersecting the trendline at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50%, 61.8%, 100%, 161.8%, 261.8%, and 423.6%. (Some of the lines will probably not be visable because they will be off the scale.)After a significant price move (either up or down), prices will often retrace a significant portion (if not all) of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci Retracement levels.In the following chart of Eastman Kodak, Fibonacci Retracement lines were drawn between a major trough and peak.

You can see that support and resistance occurred near the Fibonacci levels of 23 and 38%.

Time Zones:

Fibonacci Time Zones are a series of vertical lines. They are spaced at the Fibonacci intervals of 1, 2, 3, 5, 8, 13, 21, 34,etc. The interpretation of Fibonacci Time Zones involves looking for significant changes in price near the vertical lines.In the following example, Fibonacci Time Zones were drawn on the Dow Jones Industrials beginning at the market bottom in 1970.



candlestick charting Method

The Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation.Candlestick charts display the open, high, low, and closing prices in a format similar to a modern-day bar-chart, but in a manner that extenuates the relationship between the opening and closing prices. Candlestick charts are simply a new way of looking at prices, they don’t involve any calculations.Each candlestick represents one period (e.g., day) of data. Figure 45 displays the elements of a candle.

Interpretation:
I have met investors who are attracted to candlestick charts by their mystique–may be they are the “long forgotten Asian secret” to investment analysis. Other investors are turned-off by this mystique–they are only charts, right? Regardless of your feelings about the heritage of candlestick charting, I strongly encourage you to explore their use. Candlestick charts dramatically illustrate changes in the underlying
supply/demand lines.

Because candlesticks display the relationship between the open, high, low, and closing prices, they cannot be displayed on securities that only have closing prices, nor were they intended to be displayed on securities that lack opening prices. If you want to display a candlestick chart on a security that does not have opening prices, I suggest that you use the previous day’s closing prices in place of opening prices. This technique can create candlestick lines and patterns that are unusual, but valid.The interpretation of candlestick charts is based primarily on patterns. The most popular patterns are explained below.

Bullish Patterns:
This is a bullish line. It occurs when prices open near the low and close significantly higher near the   period’s high.

Hammer:


This is a bullish line if it occurs after a significant downtrend. If the line occurs after a significant up-trend, it is called a Hanging Man. A Hammer is identified by a small real body (i.e., a small range between the open and closing prices) and a long lower shadow (i.e., the low is significantly lower than the open, high, and close). The body can be empty or filled-in.




Piercing line.

This is a bullish pattern and the opposite of a dark cloud cover. The first line is a long black line and the second line is a long white line. The second line opens lower than the first line’s low, but it closes more than halfway above the first line’s real body.

     Piercing LineBullish engulfing lines.

This pattern is strongly bullish if it occurs after a significant downtrend (i.e., it acts as a reversal pattern). It occurs when a small bearish (filled-in) line is engulfed by a large bullish (empty) line.

Morning star.


This is a bullish pattern signifying a potential bottom. The “star” indicates a possible reversal and the bullish (empty) line confirms this. The star can be empty or filled-in.

Bullish doji star.

A “star” indicates a reversal and a doji indicates indecision. Thus, this pattern usually indicates a reversal following an indecisive period. You should wait for a confirmation (e.g., as in the morning star, above) before trading a doji star. The first line can be empty or filled in.


Long black (filled-in) line.



This is a bearish line. It occurs when prices open near the high and close significantly lower near the period’s low.

Hanging Man.
These lines are bearish if they occur after a significant uptrend. If this pattern occurs after a significant downtrend, it is called a Hammer. They are identified by small real bodies (i.e., a small range between the open and closing prices) and a long lower shadow (i.e., the low was significantly lower than the open, high, and close). The bodies can be empty or filled-in.


Dark cloud cover:
This is a bearish pattern. The pattern is more significant if the second line’s body is below the center of the previous line’s body (as illustrated).

Bearish engulfing lines.



    This pattern is strongly bearish if it occurs after a significant up-trend (i.e., it acts as a reversal pattern). It occurs when a small bullish (empty) line is engulfed by a large bearish (filled-in) line.





Evening star.




This is a bearish pattern signifying a potential top. The “star” indicates a possible reversal and the bearish (filled-in) line confirms this. The star can be empty or filled-in.




 Doji star.


 A star indicates a reversal and a doji indicates indecision. Thus, this pattern usually indicates a reversal following an indecisive period. You should wait for a confirmation (e.g., as in the evening star illustration) before trading a doji star.
Shooting star.



This pattern suggests a minor reversal when it appears after a rally.The star’s body must appear near the low price and the line should have a long upper shadow.


Saturday, November 5, 2011

600 Year Gold Chart

600 Year Gold Chart



600 Year gold chart