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.
Saturday, July 21, 2012
Friday, July 20, 2012
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.
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Tuesday, July 17, 2012
Below is the technical chart of EURUSD with Ichimoku kinko Hyo indicator.
Altogh EURUSD is closed above Kijun-sen line and has given buy signal, but it's better to avoid trading in this currency pair. The reason is clearly visible in the chart above. It will soon enter Kumo region - which is its high resistance area. Not only this, kumo region is also called no-trade zone.
On the downside, it can go upto 1.2244 - 1.2248. That's its strong support.
Saturday, July 14, 2012
This is one of the most useful article to check your email account security. MUST read it and check if your email id password is visible on internet by everyone. Many Gmail, Hotmail accounts have also been compromised.
Thursday, July 12, 2012
Below is the technical chart of Gold, using Doda-Donchain and Doda-Bollinger Bands on Daily time frame.
From the last many trading sessions, Gold is trying to go down, but it always gets support at Doda-Bollinger Bands line. Moving in a range-bound price.
On the downside, 1564.84 is the major support of Gold. If it breaks it on daily closing basis, it will give good correction. Take short calls then.
On the upside, take your long positions ONLY if it closes above 1599.22.
At this stage, wait and watch is the best policy as it is trading in a range-bound between these two levels.