Community Forums => General Chat => Topic started by: king21 on February 25, 2014, 02:08:43 PM
Title: stock market news
Post by: king21 on February 25, 2014, 02:08:43 PM
How can I read a Stochastic Oscillator? The Stochastic Oscillator ranges from a scale of 0 to 100. It will be bound to this range no matter how fast the security advances or declines. Looking at the scale, anything over 80 traditional represents an overbought threshold and 20 as the oversold threshold. Reading above 80 for the 14-day Stochastic Oscillator that is used on this site indicates that the underlying security was trading near the top of its 14-day high-low range. Reading below 20 occur when a security is trading at the low end of its high-low range. This basically means that above 80 signals show the stock has been overbou ght and is going to start to trend lower. The stocks that are heading close to their 20 level means they are oversold and are bound to have a bounce higher due to increased selling pressure. It is important to note that overbought readings!!
What are the distinct Buy & Sell Signals of the Stochastic Oscillator? A technical momentum indicator compares a security's closing price to its price range over a particular period. The oscillator's sensitivity to market movements can be REDUCED by adjusting the time period or taking a moving average of the result. The oscillator created on this site uses the Slow Stochastic reading, meaning it averages out the price and reduces inaccurate readings of short-term price fluctuations and gives you a more accurate view of the trend. There are two lines, %K and %D. %K = 100 X(C-L14)/(H14-L14), where C is the most recent closing price of the stock. L14 is the lowest price that the stock has closed at over the last 14 previous trading sessions. H14 is the highest price traded during the same 14-day period. %D is the 3-period moving average of %K. The theory behind this indicator is that in an upward-trending market, prices tend to close near their highs; conversely, in a downward-trending market, prices tend to close near their lows. IMPORTANT: Transaction signals occur when the %K crosses a three-period moving average called the %D
The Oscillator Generated On this Site is a Slow Stochastic Oscillator 14-day %K, %D is a 3-day SMA (Simple Moving Average) of %K. To reduce the volume of Bear/Bull cases we have looked back last 5 trading days to see if there is a breakout or breakdown Bull/Bear case, and we are only looking at securities with volume over 200,000.
Disclaimer The strategies described in this article are for information purposes only, and their use does not guarantee a profit. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision. Securities are subject to market fluctuation and may lose value.
How Do I Use This Site?
1) Analyze the 'BullBear Reading' technicals that the Oscillator found in the Stock Data Grid below. The Grid is also a full stock screener for stocks across NASDAQ & NYSE 2) 'Graph' button in grid shows a visual representation of the stochastic oscillator for that particular stock to signify overbought and oversold levels 3) Filter stocks by various criteria and sector and see how stocks are performing intraday 4) Seek, Analyze, Chart & Invest in the technical !
Title: Re: stock market news
Post by: BranDonk Kong on February 25, 2014, 04:29:16 PM
Who needs CNBC when you have the General Chat forums on NWR?
Title: Re: stock market news
Post by: pokepal148 on February 25, 2014, 04:39:03 PM
Screw Forbes, Bloomberg, NWR is where it's at
Title: Re: stock market news
Post by: Plugabugz on February 25, 2014, 04:55:27 PM
We need a currency called the Jones.
Title: Re: stock market news
Post by: pokepal148 on February 25, 2014, 06:27:09 PM
The james jones moderation average took a bit of a hit today due to a lack of activity on the forums. Some analysts have stated that this may be due to some recent bannings that have taken place
Title: Re: stock market news
Post by: BranDonk Kong on March 11, 2014, 12:38:22 AM