Thursday, December 27, 2012

Do not buy Gold yet | Technical Chart | 27-Dec-2012

Below is the technical chart of Gold, using Doda-Donchian and Doda-Bollinger indicators. I've also added Kumo component from Ichimoku indicator.


 


 


 



Gold is in downtrend from the last so many trading sessions. It tried to cross Kumo - the main resistance around 11-Dec-2012, but failed to do so. It started its another bear run from there. At the time of writing this article, Gold is trading around $1657.


For this week, Gold needs to cross and close above $1665.17. You can buy Gold at that level but not before that.


On the downside, $1627 and $1597 are the strong support levels.


And  on the upside, 1694 and 1732 are the major resistance levels after 1665.


Take your positions accordingly.

Tuesday, December 18, 2012

EURUSD Technical Chart | 18-Dec-2012

Now, let us take the technical chart of EURUSD with Doda-Donchian, Doda-Bollinger and Ichimoku indicators.


 


 


 


EURUSD technical chart


EURUSD is in bull run from the last many trading sessions. Currently, it is trading around 1.3166. 


Now, looking at its technical chart, the major level to watch for this week is 1.3080. As long as it is trading above this level, take only long positions.


1.3038 is the strong support and on the upside, 1.3295 is the strong resistance.


So, for today, avoid any short positions and do not miss any long positions.

Nasdaq 100 Technical chart | 18-Dec-2012

Let us discuss the technical chart of Nasdaq 100.


 


 


 


nasdaq chart


The main level to watch for Nasdaq is 2647.26. As long as Nasdaq is trading above this level, do not miss any long position. 2660 is also a good support for Nasdaq.


If it closes below 2647.26, book your profits and exit. You can take short position also there. 


On the upside, 2679.53 and 2727.96 are key resistance levels. Watch them carefully.

Silver Technical Chart | 18-Dec-2012

Below is the technical chart of Silver using Ichimoku and some other useful indicators.


 


I've taken one day time frame to get bigger picture of technical analysis.


silver technical chart


Silver is in downtrend from the last many trading sessions. The main level to watch for this week is $32.66. It needs to close above this level to enter bull zone. Below this level, it's weak.


On daily chart, it manages to get support at the bottom of kumo (see chart above). So, Kumo is acting as strong support for silver.


But let it close above $32.66 to take long position.

Gold Technical Chart | 18-Dec-2012

Below is the technical chart of Gold, using Doda-Donchian, Doda-Bollinger and Ichimoku.


 


 


 


This week main level to consider is $1701.25. If Gold trade above this level, do not miss any long position and if it trades below $1701.25, take only short positions.


At the time of writing this article, Gold is trading around $1702.16. Just slightly above $1701.25. It needs to cross the resistance of kumo viz. @1706. Above that, it will start its bull run.


On the downside, $1679.11, $1666.66 and $1644.54 are the key support levels of the week.


On the upside, $1713.68, $1735.82 and $1748.25 are the key resistance levels.

Thursday, December 13, 2012

Gold technical Chart | 13-Dec-2012

Below is the technical chart of Gold, using Doda-Donchian and Ichimoku indicator.


 


 


 


gold technical chart


Yesterday, Gold closes below $1703.88 level, which was its major support level of the week. Below this level, Gold is weak and only short-selling calls should be taken. $1696 is the minor support. Breaking it, next target is $1685.39.


Do not take any long position till Gold crosses the major resistance area of $1703-$1708.


 

Monday, December 10, 2012

Gold Technical Chart | 10-Dec-2012

Below is the technical chart of Gold, using Ichimoku and Doda-Donchian indicator.


 


 


 


 


 gold technical chart


Gold is currently trading near $17053.93. If it manages to stay here, it will begin its bull run of the week from here. It's main resistance for the week is $1705.47. Above this level, buy Gold. Below this level, do short selling.


On the downside, 1703.71 to 1704.75 is the support band and $1685 has become major support level of the month.


On the upside, watch the level of $1720 for some resistance.

Wednesday, November 28, 2012

Gold Technical chart | 28-Nov-2012

Below is the snapshot and description on technical chart of Gold using Doda-Donchain, Ichimoku indicators.


 


 


 


 


 


The beginning of this week saw bullish trend in Gold, when it started trading above $1741. But just few hrs. back, it closed below $1741 and has now entered bearish phase. So, cut all your long positions in Gold. Buy it only when it closes above $1741.29.


Support levels: 1737.58 and 1728.36


Resistance :1741.29


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

Friday, November 23, 2012

Gold Technical Chart | 23-Nov-2012

 Just now when I started writing this article, Gold gave a Buy signal. It's currently trading around $1731 after crossing the resistance of 1730.15. Just take long position here with the stop-loss of $1729.02. 


 


Do not miss any buy signal till Gold is trading above $1721.67 and ignore every short-selling signal.


 


 Here is the technical chart for your ref.


gold technical chart

Wednesday, November 21, 2012

Gold Trading Strategy for 21-Nov-2012

Yesterday, Gold managed to cross its weekly pivot point of $1721.67 and we witnessed a good rally thereafter. However, it could not crossed its resistance of $1738. Currently, it is trading around $1724. 


 


 


 


 


gold technical chart


 


Take your long position when it closes above $1728.85 with a stop-loss of $1721.67.


Target 1: $1738.60


Target 2: $1754.83


 

Monday, November 5, 2012

Gold Technical Chart | 05-Nov-2012

Gold is in downtrend from the last so many sessions. Currently, it is trading around $1678. For this weak, the buy signal will come only above $1693. Below it, do not miss any sell signal.


Support level: $1674.47


 


 


If it breaks $1674, we will see sharp correction. 

Indian Rupee: Volatility ahead by Anindya Banerjee, Currency Analyst, Kotak Securities

The correlation of the Indian Rupee to the currencies of developing economies has always been extremely rocky and the start of this can be attributed to the era post the Prussian War or Circa 1870-71. Given the purchasing power disparity between economies trading in gold versus those trading in silver and the demonetization of silver as newer reserves were being discovered, the impact of such a huge rift was profound.


Post Independence, the economic crisis of 1966 and 1991 have attributed to the weakening of the rupee further in global markets. The trade deficits of 1950, resultant inflation and the stopping of foreign aid, the war of 1965 and drought devalued the rupee further. Subsequent liberalisation helped stem the flow till 1991, when India started facing its next wave of Balance of Payment Issues from 1985 – 1990. With imports restricted and high deficit, the rupee was devalued yet again especially by 1999.

 

Between 2000 – 2007, with high remittances, sustained foreign investment inflows and the development of exports in the sectors of outsourcing and technology, the rupee led a strong battle against the USD. The year 2008 was a watershed year for FOREX trading in India. In October of that year, the RBI & SEBI allowed Indian stock exchanges, viz., NSE and MCX to offer trading in foreign exchange derivatives. In the initial phase, trading was only allowed in future contracts involving Dollar/Rupee, Euro/Rupee, GBP/Rupee and Yen/Rupee combinations. Subsequently in October 2010, NSE introduced options contracts on the Dollar/Rupee as well. Over the last 5 years, we have seen participation – both institutional and retail increase in both, the NSE and MCX.

 



 

 

Both Non–Institutional and Corporate investors are increasingly turning towards the exchanges for hedging their foreign exchange exposures. In the above charts, we see a sharp decline in volumes around Q3 FY12, on account of imposition of turnover charges by NSE and MCX, which caused a drop in participation from proprietary traders. However, since the end of last year, volumes have improved given a more active and increased participation from Corporates drags on exports. That coupled with simultaneous high levels of inflation and low levels of investment and consumption stimulating fiscal policy makes imports competitive to domestic produce and causes the inherent trade deficits to widen.

 









 

 

The slowdown in the domestic economy is reflected in the slowing of the new orders component of the PMI (Purchasing Managers Index) in manufacturing as well through anemic industrial growth. PMI is a diffusion index, where the level 50 separates expansion from contraction and is also a survey of business managers, whose responses are mapped according to various sub-components. Export continues to lag behind imports in terms of growth, as in August the merchandise imports de-grew 5% whereas, merchandise exports de-grew 10% given which merchandise trade deficit continues to remain elevated.









 

 

Over the last few weeks, three significant events have emboldened the risk-on mood in financial markets. First, it was the commitment made by the European Central Bank towards unlimited amounts of bond buying programs for fiscally stressed nations. Purchases however are conditioned upon the member state formally seeking a bailout and then adhering to the conditions imposed by the EU/IMF/ECB Troika for fiscal consolidation. The ECB also relaxed the collateral norms, which in turn, will help banks to pledge assets to secure funding from Central Banks. The effect of the ECB’s decision was a sharp decline in the bond yields of Spain and Italy and rally in their respective equity markets as seen from the charts below.

 

The second significant event was the ruling by the Constitutional Courts in Germany rejecting the motion to block permanent bailout funds from the Euro zone and ESM as was widely expected. The news was met with cheers from the risk assets – What does this mean? while the Dollar tumbled. While the ruling was a preliminary one and full review will be considered together with ECB's planned OMT (what is the full form of OMT and its function?) in December, the EZ could convene the first Board of Directors meeting for the ESM as early as October 8, 2012. Nonetheless, the court also requested that Germany's liability through the ESM must be capped at agreed EUR 190b levels. The overall lending capacity of the ESM has been capped at Euros 500 billion. What is the impact of this ruling specifically?

 









 

 

Finally, the US Fed adopted a much more dovish stance than was expected, when they not only announced a fresh round of open-ended purchases of mortgage backed securities of USD 40 billion a month, but also extended theinterest rate guidance from 2014 to 2015. Aptly named quantitative easing, the third round of stimulus includes massive bond-buying initiatives which would stabilize the US Economy through the housing sector and the stock markets. The Fed has also committed to continuing the purchases of MBS (full form) till labor market conditions improve substantially. This means that such purchases could continue for well over a year, with possible additional purchases if the need arises.

 

This open ended commitment for more purchases means that the US Federal Reserve could look to purchase additional round of treasury securities once Operation Twist ends in December. If that does happen, then the Fed's balance could expand significantly from current levels of USD 2.8trillion to between USD 4-5 trillion by end-2014 according to certain estimates.

 

A significant ramp up in the Fed's balance sheet could be inflationary (for US or India) Already commodity prices have rallied on the announcement and we fear that as the super easy policy continues, oil and edible commodities might see further upward spikes. Anecdotal evidence suggests that after QE1 and QE2 stimulus packages, commodity prices especially that of oil, rallied quite significantly.

 

It needs to be noted that a weaker US Dollar, could hurt other exporting countries, like the EMs and Euro Zone nations. Hence, beyond a point, this could spark a call for an all-out race for devaluation around the globe. In the garb of using easy monetary policy to help the ailing economy, Central Banks could be forced by respective Governments to weaken their currencies. This in turn can lead to a perpetuating highly inflationary cycle in the global economy and what else in terms of affecting currencies specifically?


 

Currently, the Indian Rupee remains capped within a well-defined upward trending channel with the spot having taken support around the primary uptrend line. In case, the pair slips below the trend line, which would be below 53.00 on spot, and sustains then it can test the mid-line of the channel around 51.70/52.00 on spot levels. There is good chance that that USD/INR holds the primary trend line above 53.00 and then goes into sideways consolidation. However, in case the pair slips through the 53.00 handle then we would expect mid-line to offer a strong case for a floor under the Dollar/Rupee rate.

 


This is a Guest article by Kotak Securities.

About Kotak Securities:

Kotak Securities is one of India’s share broking firm offering mutual fund and IPO investing service’s along with a research division specializing in Sectoral Research and Company Specific Equity Research. Express your views on their Facebook Page and Twitter Handle or you can also visit kotaksecurities.com for more information.

Wednesday, October 24, 2012

Gold trading strategy for today | 24-Oct-2012

Let us discuss the trading strategy in Gold for today. I'll use few indicators, which have already been discussed in Indicators section of this website.



As mentioned in my last article, Gold is weak below $1730. It is currently trading near $1708. So, do not miss any sell signal given by Doda-Donchian below $1730. At the time of writing this article, it has just given sell signal @1709.



$1706.03 is the small support level.


$1690 is the easy visible target and immediate support for Gold as of now.


Make the stop-loss of $1709.70


 

Tuesday, October 23, 2012

Gold trading strategy | 23-Oct-2012

Let us discuss the trading strategy in Gold for today. Gold is currently trading near $1722. It's been in downtrend from the last few trading sessions. On the upside, $1730 has become the main resistance level. Do not take any long position till Gold closes above $1730-$1734.  On the daily chart, $1686 - $1690 seems to be very strong support. Till then, continue with your short positions.


 

Thursday, October 11, 2012

Commodity trading guide | 11-Oct-2012

1. Gold: It has bounced back to some extent. But buy signal is only from 1777.40. On the upside, 1790.33 will be resistance and on the downside 1758.99 will be the support.


2. Silver: Take long call only above 34.3033. Resistance is at 34.96


3. Crude: It is in bullish mode. 90.14 is the major support level. If it closes below it, exit and take short position.

Forex Technical Charts explained | 11-Oct-2012

1.  EURUSD: It is still in bearish mode. Take only short positions here. Long positions only above 1.2969


2. USDJPY: It has closed down its major support level of 78.43. So, no long positions here too.


3. AUDUSD: It managed to close above 1.0246. So, take long positions here. 1.0341 and 1.3952 will be resistance here.


4. GBPUSD:  Take only short positions here. It will take some time to give buy signals.

Tuesday, October 9, 2012

Gold Technical Chart | 09-Oct-2012

 Let us discuss the technical chart of Gold on H4 timeframe, using Doda-Donchian indicator.


gold technical chart


Gold is currently trading @1779.16. It managed to get support around 1769. Now, it will surely break its resistance of 1781.20 - 1781.92. Take only long position in Gold. Its weekly chart is also bullish. Avoid short-selling here.


 


 

Forex Guide for 09-Oct-2012

Below is your guide to forex trading for today using technical analysis with various useful indicators.


1. EURUSD: It is trading around its weekly pivot level of 1.2969. Take only long position above this level. 1.29951-1.29961 is the resistance level. Immediate target on upside is 1.30239.


On the downside, if it closes below 1.2969, avoid taking long positions then. Instead, take only short position. 1.2950 will be support level.


2. EURAUD: It should take support around 1.2659. If it closes below this level, take short position.


3. AUDUSD: From the last few trading sessions, it is trading below its weekly pivot points; currently at 1.0246. Take long position only when it closes above this point. Below this level, don't miss any short call.


4. EURGBP: It is in bullish mode. 0.80728 is the immediate support level. Weekly pivot point is at 0.8033. Don't miss any long position above this level.


5. USDJPY: It has broken support level of 78.43. Now, take only short position. However, if it closes above 78.43, take only long position.

Wednesday, September 19, 2012

Gold Technical Chart | 19-Sept-2012

 Below is the technical chart of Gold, using Doda-Donchian, Ichimoku and Doda-Bollinger Bands.


 


 


 


 


 



I've used weekly time frame in above chart to look for medium-term trend.


Doda-Donchian indicator gave BUY signal @$1622.24. But that was weak signal as the price was trading below Doda-Bollinger Bands and Ichimoku Kumo. So, it had to cross the tough resistance to say breakout.


Then, it closed above kumo @$1738.42; confirmed by Doda-Bbands. And there it gave bullish breakout. 


It is a clear buy now. Buy Gold even on dips.


Some support levels: 1764.5767, 1755.49


 

Wednesday, August 29, 2012

Aroon Oscillator | Description, Calculations, Examples, Download

Aroon oscillator is a expansion of Aroon indicator. It is calculated by subtracting the Aroon Down from the Aroon Up. The resultant number will oscillate between 100 and -100. 


 


 


Aroon Oscillator Formula


 Aroon Oscillator = AroonUp - AroonDown.


 


Trading signals for the Aroon Oscillator:



  • Above zero signals an up-trend.

  • Below zero indicates a down-trend.

  • The farther away Aroon Oscillator is from the zero line, the stronger the trend.

  • Above 50 is considered a strong uptrending market

  • Below -50 means that the market is trending lower.

  • Near 0 means that the market is in transition and not trending.

  • Above 50 means strong uptrend.

  • Below 50 means strong downtrend.


A decrease of the Aroon Oscillator from above the 50 line shows that the uptrend is consolidating and is reversing direction downward. When the Aroon Oscillator hovers around the zero line over time, then the market is in a directionless period.


When the oscillator moves toward -50 from the zero line, the market is beginning to trend downward. And when the Aroon Oscillator is below -50, then the market is in a strong downtrend.


When the oscillator begins to move upward towards the zero line, the downward trend is slowing down and beginning to reverse direction.


In addition, when the Aroon Oscillator moves higher from the zero line, then the market is moving from a period of non-trending to a period of uptrending.


 


In Summary:





    • Buy when Aroon Oscillator is above zero line.




    • Book profit/loss and Exit when Aroon Oscillator moves below 50.




    • Sell when Aroon Oscillator is below zero line.




    • Book profit/loss and Exit when Aroon Oscillator moves above -50.





 


Example


This is the technical chart of EURUSD currency pair on H1 timeframe using Aroon oscillator.



The buy signal was given by Aroon oscillator when it moves above zero line and exit signal was signal when it moved below 50. During this period, EURUSD trading gives a profit of good pips from point 1 to point 2, mentioned in the chart.


Download


You may download Aroon oscillator indicator for MetaTrader 4 from here. 


 

Monday, August 27, 2012

Gold Weight Conversion Table

This is very useful table to convert Gold into different units as required:


 


 


 


 















































































To convert from


To Multiply by
Troy ounces Grams 31.1035
Million ounces Tonnes 31.1035
Grams Troy ounces 0.0321507
Kilograms Troy ounces 32.1507
Tonnes Troy ounces 32,150.70
Kilograms Tolas 85.755
Kilograms Taels 26.7172
Kilograms Bahts 68.41
Troy ounces Grains 480
Troy ounces Avoirdupois ounces 1.09714
Troy ounces Penny weights 20
Avoirdupois ounces Troy ounces 0.911458

Short tonne

Metric tonne 0.9072

Aroon indicator | Description, Calculations, Examples, Download

Introduction


The Aroon indicator developed by Tushar Chande, indicates if a price is trending or in range trading. It can also reveal the beginning of a new trend, its strength and also allows you to anticipate changes from trading ranges to trends. AroonDown and the AroonUp indicators are used together and combined are called the Aroon indicator. The Aroon indicator is often used to determine whether a stock is trending or not and how stable the trend is.


AroonUp measures how long it has been since prices have recorded a new high within the specified period. If the current price is higher then the user defined number of periods before it, then the AroonUp value is %100. In other words, it's a new high for that period. If a new low occurred during the period then AroonDown will be zero. Otherwise it returns a percent valve indicating the time since the new high occurred.


 


AroonDown measures how long it has been since prices have recorded a new low within the specified period. If the current price is lower then the user defined number of periods before it, then the AroonDown value is %100. In other words, it's a new low for that period. If a new high occurred during the period then AroonDown will be zero. Otherwise it returns a percent valve indicating the time since the new low occurred.


Another indicator, the Aroon Oscillator, can be constructed by subtracting AroonDown from AroonUp.


Why to use Aroon indicator?


The best thing about this indicator is that it identifies the trend for you first and foremost. You don’t have to make an effort to assess what the current market trend is as the indicator will do it for you. The trend will be found out keeping in mind the currency pair you are trading. Once the trend has been established, the indicator will then work out whether there is any probability of the trend reversing or altering its course all of a sudden. A line chart is use to present this indicator visually. This is the best way of explaining this to the newbie traders who are not experienced enough to be able to assess it based on their knowledge.


As you can see from the name - Aroon helps to predict important changes in the market. Namely, the transition from flat to trend and vice versa. From Sanskrit, the word Aroon translates as "Light of the Dawn", which is symbolic, since the indicator, in a calm market, really gives its signals in advance.


Arun, the trend indicator (Aroon) consists of two lines: Aroon up (green line) and Aroon down (red line).


The main advantage of the indicator is that it is visually intuitive and simple. A minus is a slight delay in the signals with high volatility. But, for the sake of justice, it is worth saying - this is a minus of almost all technical indicators.


The Aroon indicator is a conceptually simple technical indicator. Developed in 1995, it is newer than many of the more popular technical indicators. But for some reason, not all charting web sites offer the Aroon indicator. Yahoo! Finance doesn’t offer it. Neither does CME Group. Two charting web sites that do are Stockcharts and Barchart.


Calculation


Calculation of the two outputs of the Aroon indicator Aroon High and Aroon Low,  involves only a single parameter, a span parameter specifying the number of bars over which to calculate the indicator. The most common setting is 25 days. The formulas are:


 


 


Interpretation


Tushar describes the following trading signals :


1. If Aroon down under 50, signals that the bearish trend is weakening


2. If Aroon up under 50, indicates that the bullish trend is weakening


3. If Aroon down above 70, signals a strong bearish trend


4. If Aroon up above 70, signals a strong bullish trend



  • The green line in the 70-100 zone is a strong growing trend;

  • The green line in the 50-70 zone is a high probability for an increasing trend;

  • The green line in zone 50-30 is a fading growing trend;

  • The green line in zone 30-0 is the absence of a growing trend;

  • The red line in the 70-100 zone is a strong falling trend;

  • The red line in the 50-70 zone is a high probability for a falling trend;

  • The red line in zone 50-30 is a fading down trend;

  • The red line in zone 30-0 is the absence of a falling trend;

  • Parallel movement of lines - consolidation of the market;

  • Crossing lines - changing the trend.


Deal for Sale



  • The lines intersected. Red from above and is in the zone above 70. Green from below and is in the area below 30. Sell.

  • Stop Loss put on 3-5 points above the previous local extremum.

  • Take Profit set at a distance of two and a half times longer than Stop Loss. That is, if the SL stands at minus 20 points, then TP is set at plus 50 points from the current price.

  • When crossing the Aroon lines, we close the deal, without waiting for the triggering of the SL or TP orders.


For a transaction to buy the reverse terms.


How to read Aroon Indicator


1. Below zero signals a bearish trend


2. Above zero indicates a bullish trend


3. The farther Aroon indicator from the zero line , the stronger the trend


Weakness in the market is indicated when AroonDown remains between 0 and 30 for an extended period of time. If AroonDown and AroonUp follow similar movement patterns, this is a sign of consolidation. Finally, AroonDown crossing below AroonUp is considered a bearish sign.


When AroonUp is at 100, a new uptrend may have begun. If it remains persistently between 70 and 100, and the AroonDown remain between 0 and 30, then a new uptrend is underway. If AroonUp dips below 50 then the trend has lost momentum.


When AroonDown is at 100, a new downtrend may have begun. If it remains persistently between 70 and 100, and the AroonUp remain between 0 and 30, then a new downtrend is underway. If AroonDown dips below 50 then the trend has lost momentum.


Trading ranges and consolidation: When AroonUp and AroonDown move in parallel (horizontal, sloping up or down) with each other at roughly the same level, then price is range trading or consolidating.


New Trend, if the AroonUp crosses above the AroonDown, then a new uptrend may soon start. Conversely, if AroonDown crosses above the AroonUp, then a new downtrend may soon start.


Examples


1. Below is the technical chart of Gold on H4 timeframe using Aroon indicator. 


aroon indicator example


As you can see in the above chart, Gold price started its uptrend journey as soon as there is a crossover between AroonUp and AroonDown line. AroonUp line above 70 and AroonDown line down below 30 was the final signal to buy.


2. Below is the technical chart of Crude using Aroon indicator.


 Aroon indicator example


As you can see in the above chart, the downtrend in Crude started when AroonUp and AroonDown crossover happens and are below 30 and above 70 respect.


How to filter false signals from Aroon indicator?


Like others, Aroon indicator also gives false signals sometimes. You must learn that no indicator is perfect and you need to filter out false signals from that indicator. 


Remember, there are no indicators on Forex that are not mistaken. Aroon (Arun, trend indicator), like any other, requires confirmation of its signals. When building your own trading system, use several indicators.



The best way to filter out false signals from Aroon indicator is to use 63-days Exponential Moving Average (EMA) indicator.

 

Now, if the price is trading above 63-days EMA AND there is a buy signal from Aroon indicator - take long position and vice-versa.

On the other hand, if you get buy signal from Aroon indicator but the price is trading below 63-days EMA, do not take that call. It's a false signal.

 

 

Download


Download Aroon indicator for MetaTrader4


Download Aroon indicator for MetaTrader5

Wednesday, August 22, 2012

List of technical indicators for tutorials

I've decided to start series of articles on technical indicators with their explanation, charts, videos etc. I'll take examples from Forex and/or stock market to explain them.


Following is the list of indicators, which you'll find under tutorials:


 


Technical indicators starting with A 


Aroon Indicator


Aroon Oscillator


Average Directional Movement Index (ADX)


Average Directional Movement Index Rating (ADXR)


Average True Range (ATR)


 


Technical indicators starting with B 


Balance of Power


Bollinger Bands


Bollinger Bands - Fibonacci Ratios


Bollinger Bandwidth


Bollinger Percent B


 


Technical indicators starting with C 


Chaikin’s Volatility


Chande’s Dynamic Momentum Index


Chande’s Momentum Oscillator (CMO)


Chande’s QStick


Chande’s Range Action Verification Index (RAVI)


Chande’s TrendScore


Chande’s Variable Index Dynamic Average (VIDYA)


Chaos Accelerator Oscillator


Chaos Alligator Oscillator


Chaos Awesome Oscillator


Chaos Fractals


Chaos Gator Oscillator


Choppiness Index


Commodity Channel Index (CCI)


Coppock Curve


 


Technical indicators starting with D 


Darvas Box


DeMark’s DeMarker I


DeMark’s Projected Range


DeMark’s Range Expansion Index (REI)


Detrended Price Oscillator (DPO)


Directional Movement Index (DX)


Directional Movement System


Disparity Index


Donchian Channel


Double Exponential Moving Average (DEMA)


Double Stochastic Oscillator


 


Technical indicators starting with E 


Ehlers Fisher Transform


Ehlers Laguerre Relative Strength Index


Ehlers MESA Adaptive Moving Average (MAMA and FAMA)


Ehlers Relative Vigor Index (RVI)


Elder-Ray Bear Power


Elder-Ray Bull Power


Elliot Oscillator


 


Technical indicators starting with F


 


--


 


Technical indicators starting with G 


Gann HiLo Activator


Gann Swing Oscillator


Gann Trend Oscillator


 


Technical indicators starting with H 


Hull Moving Average


 


Technical indicators starting with I 


Ichimoku Kinko Huo


Inertia


 


Technical indicators starting with J 


 


--


 


Technical indicators starting with K 


Kaufman's Adaptive Moving Average (KAMA)


Kaufman's Efficiency Ratio


Keltner Bands (Based on ATR)


Keltner Channels


Kurtosis Indicator


 


Technical indicators starting with L 


Linear Regression Acceleration


Linear Regression Indicator


Linear Regression Slope


 


Technical indicators starting with M 


MACD


MACD-Histogram


MACD-Line


Mass Index


McClellan Histogram


McClellan Oscillator


McClellan Summation Index


McGinley Dynamic


Momentum


Moving Average (MA)


Moving Average Envelope


Moving Average of RSI


Moving Slope Rate of Change


 


Technical indicators starting with N 


 


--


 


Technical indicators starting with O 


 


--


 


Technical indicators starting with P 


Parabolic SAR


Percentage Price Oscillator


Pivot Points - 24-Hour Cycle


Pivot Points - 24-Hour Cycle - Fibonacci Ratios


Pivot Points - Monthly Cycle


Pivot Points - Monthly Cycle - Fibonacci Ratios


Pivot Points - Weekly Cycle


Pivot Points - Weekly Cycle - Fibonacci Ratios


Polarized Fractal Efficiency


 


Technical indicators starting with Q 


Quantitative Qualitative Estimation (QQE)


 


Technical indicators starting with R 


Rainbow Charts


Rainbow Oscillator


Rate of Change (ROC)


Recursive Moving Trend Average


Relative Momentum Index (RMI)


Relative Strength Index (RSI)


R-Squared (R2)


 


Technical indicators starting with S 


Schaff Trend Cycle


Stochastic Momentum Index


Stochastic Oscillator


 


Stochastic RSI Oscillator


Stoller Average Range Channels (STARC Bands)


Support and Resistance


 


Technical indicators starting with T 


T3 Moving Average


Trailing Stoploss Levels (Volatility-Based)


Trailing Stoploss Reversal Level


Trend Continuation Factor (TCF)


Trend Intensity Index (TII)


Trend Oscillator (tosc)


Trend Trigger Factor (TTF)


Triple Exponential Average (TRIX)


Triple Exponential Moving Average (TEMA)


True Strength Index (TSI)


 


Technical indicators starting with U 


Ulcer Index


Ultimate Oscillator


 


Technical indicators starting with V 


Volatility Quality Index


 


Technical indicators starting with W 


Williams Percent Range (%R)

Friday, August 17, 2012

Gold weekly technical chart | 17-Aug-2012

 Below is the technical chart of Gold, using Ichimoku, Doda-Donchian and Doda-Bollinger Bands indicator.


 


Gold is currently trading around $1615. For medium term trend, we use weekly chart and for long term, we use monthly chart. Above is the weekly chart.


The price of Gold is trading below kumo, which is a sell signal. It is trading below Doda-Bollinger Bnads - again sell signal. The only positive point is that it is trading above Doda-donchian line. All that means, the technical signals are mixed and are not clear. So, one should avoid trading in Gold as of now.


Now, the question arises, when to buy or short-sell in Gold. The answer is again in the above chart.


If it closes above kumo and Doda-Boolinger bands i.e. 1691.44, buy it. It will again start its bull run from there.


If it breaks its major support level viz. 1524.47, do short selling at that level.

Saturday, July 21, 2012

Nasdaq boosts Facebook compensation plan to $62 mln

Nasdaq OMX Group Inc plans to pay out $62 million in cash to firms that lost money in the bungled Facebook Inc initial public offering in May, modifying an earlier plan that drew intense criticism from market makers and other exchanges.


 

The fund, which Nasdaq said on Friday it would file with regulators, is $22 million larger than originally proposed in June. All accommodations will be paid in cash, a departure from the prior plan in which Nasdaq would have mostly compensated firms through trading credits or rebates.

 

All payouts are expected to occur within six months.

 

Market makers lost upward of $200 million due to technical glitches on the IPO when Nasdaq's systems could not handle the massive amount of orders and cancellations ahead of the IPO.

 

The market makers, which facilitate trades for brokers ensuring smooth market operations, said Nasdaq's original plan fell far short. Some said they were considering legal action.

 

The original plan also drew the ire of other exchanges, which said the trading credits would force the firms to trade on Nasdaq.

 

NYSE Euronext and BATS Global Markets on Friday declined to comment on the new proposal.

 

The botched IPO has been a communications nightmare for Nasdaq, which prides itself on its technology.

 

It is also a black eye for an exchange industry already suffering from lost investor confidence after both the financial crisis and the "flash crash" in May 2010, when $1 trillion in shareholder equity was temporarily wiped out in minutes.

 

"We deeply regret the problems encountered during the initial public offering of Facebook," Nasdaq CEO Robert Greifeld said in a statement. "We failed to meet our own high standards based on our long history of providing outstanding technology to our members and exchange customers."

 

Greifeld said the exchange has learned from the experience and will continue improving its trading platform.

 

The Financial Industry Regulatory Authority, Wall Street's self-regulator, has agreed to evaluate claims submitted under the program. The filing of the accommodation program with the SEC begins a comment period, Nasdaq said.

 

Facebook's $16 billion IPO was to have been the culmination of years of breakneck growth for a social network that became a cultural and business phenomenon. But the shares of the eight-year-old company founded by Mark Zuckerberg in his Harvard dormitory room have sagged since going public at $38 a share.

 

Facebook shares fell 0.8 percent on Friday to close at $28.76.

 

Nasdaq's four largest market makers in the $16 billion Facebook IPO -- UBS, Knight Capital Group, Citadel Securities, and Citigroup's Automated Trading Desk -- have estimated that they lost $200 million from Facebook trades entered May 18.

 

In addition, news reports have said UBS may have lost considerably more, perhaps $350 million.

 

Citadel said it had no comment on the new plan, while the other market makers were not immediately available for comment. Nasdaq announced the filing late on Friday.

 

The losses were caused at least in part by Nasdaq technical problems and a communications breakdown that prevented market makers from knowing for hours if their orders had gone through. Some orders were lost altogether.

 

Knight Capital and UBS have hinted that they could bring legal action against Nasdaq if the compensation does not cover their losses.

 

Source: Reuters

(Reporting by Rick Rothacker, John McCrank, Karey Wutkowski and Herb Lash; Editing by Bernard Orr, Andre Grenon, Gary Hill)

Friday, July 20, 2012

Understanding price charts for effective technical analysis

Technical Analysis for analysing securities and making investment decisions has been one of the most preferred ways of tapping into the pulse of the market. And at the nucleus of this function is the factor of price and price charts that ultimately govern the process of technical analysis.


 


 


 


 


Price Charts are one of the most efficient ways of tracking and inferring price movements, studying supply and demand, and assessing future trends. A typical price chart is depicted on the X-Y scale wherein the x-axis (horizontal axis) represents the time scale and y-axis (vertical axis) represents the price scale.



Apart from the basic Open-high-low-close chart (also known as OHLC charts) where the opening, highest, lowest and closing price of scrip is taken into account, there are three other ways of charting scrip prices.


1. Line Chart or Close price chart: This is the most basic method of plotting prices, representing only the closing prices over a set period of time on an X-Y graph. This type of graphical representation helps discount intraday swings and is useful when open, high and low point data is not available.



2. Bar Chart:


A popular method of plotting prices, Bar Charts take into account high, low and close point data of a stock price for a particular day. The chart is made up of a series of vertical lines, each representing the high, low and closing price of scrip. The opening price is illustrated by a dash on the left side of the vertical bar while the closing price is plotted towards the right. A bar coloured red signifies that the stock value has gone down.



3. Candlestick Chart:


Similar to a bar chart, a candlestick chart (a method of Japanese origin) is only different in terms of its visual construction, representing OHLC data  across a candlestick-like illustration. A candlestick has two parts – the body and its shadow.



The body represents the open and close price of the scrip for the day while the upper and lower regions denote the high and the low price of the day.


 


A candlestick is further categorised into three: A white candlestick which denotes a bullish movement, a black candlestick indicating bearish trend and the ‘Doji’ candlestick that indicates a neutral trend.



Whatever the choice of chart, a representation of such a nature and design is helpful in understanding the emotions in the market by studying the market itself, as opposed to its many components. It also helps an investor plan the entry and exit strategy better. Each price chart comes with its own characteristics, and while data may be same across the board, each illustration presents a different interpretation. It is advisable to try out every method to know which best work for your stock planning; for constantly switching charts will only create confusion.


 


About Kotak Securities:


Kotak Securities is one of India’s leading stock broking firm offering stock trading, mutual fund and IPO investing service’s along with a research division specializing in Sectoral research and Company Specific Equity Research. Express your views on their Facebook Page and Twitter Handle or you canalso browse through their various videos on YouTube and Slide Share.