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.

Wednesday, January 25, 2012

MACD Technical Analysis

MACD technical analysis

MACD technical analysis stands for moving average convergence/divergence analysis of stocks. This type of analysis tool was originally developed by Gerald Appel in the 1960’s. As the names of this analysis suggests, this analysis is based on the moving averages. This is a form of technical analysis and used by investors to know whether to hold the stock, buy more or sell it.
MACD technical analysis uses moving averages, creating a momentum oscillator by subtracting the longer term moving average from the shorter term moving average. In the end you get a line that crosses above and below zero without any limitations on the up or downside.

The MACD

If you follow the graph above, you will notice after the point of crossover, as the trend increases in strength (i.e. the price rises or falls faster and for a longer time), the two MA lines diverge away from each other. As the trend decreases in strength, the two MA lines converge toward each other. The difference between the two EMAs is the convergence / divergence factor in a MACD indicator.

MACD = Short Term EMA – Long Term EMA

The MACD subtracts the long term EMA value from the short term EMA value and plots it onto an indicator chart. This results in either a positive value (if the trend is up) or anegative value (if the trend is down). The value that is plotted is an indication of how strong the trend is, meaning how large the divergence is. While the common default settings for the EMAs are 12 and 26 days, you can change those values to suit your
trading method to find what works the best for you.

Purpose of MACD

If the MACD is positive (i.e. the short term EMA is above the long term EMA), this indicates increasing upward momentum. Depending on your trading method, you may want to refrain from going short or if you were in a short position, this may be the indication to close out your position.

If the MACD is negative (i.e. the short term EMA is below the long term EMA), this indicates increasing downward momentum. Depending on your trading method, you may want to refrain from going long, or if you are in a long position, this may be the indication to close out your position.

Usually the MACD incorporates a 26 day and 12 day exponential moving average(EMA). 26/12 is the most common combination used by the experts where 26 day EMA is slower and 12 day EMA is faster.



Calculation of MACD
The MACD value can be calculated by simply deducting the longer EMA from the shorter EMA. This value oscillates around a zero point, zeros being where the 26 day EMA is identical, and therefore (usually) crosses over the 12 day EMA.

MACD = EMA (12) – EMA (26)




Characteristics of MACD

The MACD is:

MACD is a lagging trend deviation indicator using two EMAs as method of deviation.
        It is best when used as a technical indicator for long-term trends.
  It is plotted with stock trading software as a smooth series, ignoring insignificant price variation.
 Subject to whipsaw, often leading to poor market timing.

MACD interpretation:

Analysts who follow MACD technical analysis use the following guidelines:

When the MACD crosses over from below the signal line and rises above the signal, this is a sign to buy. Conversely, when the MACD crosses over from above and drops below the signal, this is a sign to get rid of the stock.
  • If the MACD crosses the zero point and moves from below zero to above zero, this is a buy signal and vice versa.
  • In sideways trending markets, there may be numerous cross-over, thus making interpretation unreliable. MACD buying signs are best used in a generally up trending stock or market.The signs to buy or sell are stronger if the movement up or down is sharp.

Tuesday, January 17, 2012

Monthly Income Plan - Conservative-CRISIL Mutual Fund Ranking : Quarter Ended March 2011


Monthly Income Plan - Conservative
Mar-11 Rank Change Dec-10 Rank Superior
Return
Score
Industry
Concentration
Company
Concentration
Debt
Asset
Quality
Debt
Liquidity
Equity
Liquidity
Modified
Duration
Weightages 60% 5% 5% 17.5% 7.5%*(100-K) 7.5%*K 5%
Birla Sun Life Monthly Income 1 1 1 2 3 3 3 4 2
Birla Sun Life MIP 2 2 2 3 4 3 3 3 3
UTI Monthly Income Scheme 2 2 2 3 2 5 4 2 4
Birla Sun Life MIP II - Savings 5 Plan 3 3 3 2 3 2 3 3 3
HSBC MIP 3 3 3 3 1 2 2 3 3
ICICI Prudential MIP Plan 3 3 3 5 3 4 4 3 2
SBI Magnum Monthly Income Plan 3 3 3 4 2 1 1 4 4
DWS Money Plus Advantage Fund 4 4 4 4 4 3 5 5 1
Principal MIP Accumulation Plan 4 4 4 1 3 4 3 1 3
Tata Monthly Income Fund 5 5 5 3 5 3 2 2 5

Tuesday, January 10, 2012

Global Gold ETF Holdings-2011

                                                                           Global Gold ETF Holdings-2011                  


                       P.name      Tonnes  
   T.Ounces
       T.Value
New York Stock Exchange Arca , SingaporeExchange (SGX) , 
Tokyo Stock Exchange (TSE) , 
Hong Kong Stock Exchange (HKEx)

SPDR® Gold Shares
1262.899
40,603,467
US$72,665m
London Stock Exchange (LSE)
NYSE Euronext Paris
Borsa Italiana
Frankfurter Wertpapierbörse (Deutsche Börse - Xetra)
Gold Bullion Securities
115.35
3,708,632
US$6,619m
London Stock Exchange (LSE) 
, NYSE Euronext Paris 
, Borsa Italiana , Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) 
, NYSE Euronext Amsterdam

ETFS Physical Gold
126.23
4,058,350
US$7,243m
Australian Stock Exchange (ASX)
Gold Bullion Securities 

14.21
473,767
US$816m
Johannesburg Securities Exchange (JSE)
New Gold Debentures 

46.75
1,502,890
US$2,679m
NASDAQ Dubai
Dubai Gold Securities
0.154
4,951
US$9m

 Note: Change in Total Tonnes from yesterday’s data: SPDR added 2.726 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 166.23: -0.24 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,705.89: No change from yesterday’s data.

Thursday, January 5, 2012

Trend Lines: Uptrend Lines And Downtrend Lines

Trend Lines – Stock Trend Lines

Trend lines connect a series of highs or lows to define and confirm a trend.  The trend may be an uptrend or a downtrend, but it will generally be identified by trend lines.  Trend lines are straight lines which are drawn along at least two relative highs or relative lows.  Trend lines may be horizontal trend lines or slanted, as is the case with rising trend lines (uptrend lines) or descending trend lines (downtrend lines).

Trend lines are often good places to initiate trading positions with a low-risk entry, because a penetration of the trend line is a break of the trend, which provides an exit signal.  The more times that price touches the trend line, the more significant and valid that trend line becomes.  When trend lines first begin to form, they may require redrawing to be sure to connect significant lows and highs, but as a trend line matures, it will rarely need to be adjusted.  The steeper a trend line’s angle, the less reliable it becomes.

Uptrend Stock – Uptrend Lines :




An uptrend occurs when a stock makes consecutive higher highs and higher lows, resulting in a price advance which trends higher.  Each relative high is above the preceding high, and each relative low is higher than the preceding low.  Uptrend lines gain more validity each time price touches but does not penetrate the uptrend line.  An uptrend remains a trend until this series of higher highs and higher lows is broken.  A downside penetration of a rising trend line is a technical sell signal, and usually the first indication that an uptrend may soon end.  An uptrend is deemed to be complete with the formation of a lower high or a lower low.


Downtrend Stock – Downtrend Lines:


A downtrend occurs when a stock or index makes consecutive lower lows and lower highs, resulting in a price decline which trends lower.  Each relative low is below the preceding low, and each relative high is below the preceding high.  Downtrend lines gain more validity each time price touches but does not penetrate the trend line.  A downtrend remains a trend until this series of lower highs and lower lows is broken.  An upside penetration of a descending trend line is a buy signal, and usually is the first indication that a downtrend may soon end.  A downtrend is deemed to be complete with the formation of a higher low or higher high.  This provides a trading opportunity to go long once a downtrend is broken.

Channeling Stock – Trading Range:

A channeling stock is a stock in a trading range with prices bound by two parallel trend lines.  The parallel trend lines connect the highs and lows, which form the area in which the stock is channeling.  The upper trend line acts as resistance, and the lower trend line acts as support.  Channeling stocks and trading ranges are the typical price action in stocks, as stocks tend to trend less than half of the time.  A stock which breaks out of a channel or trading range is often affected by the duration of the channel, the width of the channel, and the strength of the breakout.  Trading a channeling stock may mean buying support and selling resistance while waiting for a breakout to occur and a larger move to trade.

Appearance:  A channeling stock has limited movement and is bound by well-defined trading range.  There is resistance above the stock and support below.  Sellers lurk at resistance, preventing the stock from making new relative highs by selling at higher prices.  Buyers lurk at support, preventing the stock from trending lower or making new relative lows by buying at lower prices.  This leaves the stock with horizontal price action rather than an uptrend or downtrend.  The trading range may be wide or narrow, and is typically only resolved with a high-volume thrust to new relative highs or lows.

Trading Channels: 

Channeling stocks offer a variety of trading possibilities.  Some traders will buy the stock at support with a stop-loss placed below support, anticipating a move back up to the top of the channel.  Other traders will short sell the stock as it reaches the high end of the channel in anticipation of a move back down toward support, where they expect to cover the short for a profit.  Finally, breakout traders will wait patiently for the stock to break out of the channel entirely before initiating a trade, expecting the stock to resume its prior trend.  The price projection for a stock breaking out of a channel is dependent upon the characteristics of the channel as well as the intensity of the breakout.