ETF Screen. Market Harmonics - Nasdaq Sentiment Index. Getting Started With Trading. Implied Volatility in Options - The Options Playbook. Some traders mistakenly believe that volatility is based on a directional trend in the stock price.
Not so. By definition, volatility is simply the amount the stock price fluctuates, without regard for direction. As an individual trader, you really only need to concern yourself with two forms of volatility: historical volatility and implied volatility. (Unless your temper gets particularly volatile when a trade goes against you, in which case you should probably worry about that, too.) Historical volatility is defined in textbooks as “the annualized standard deviation of past stock price movements.”
Even if a $100 stock winds up at exactly $100 one year from now, it still could have a great deal of historical volatility. Figure 1: Historical volatility of two different stocks This chart shows the historical pricing of two different stocks over 12 months. Introduction To The Arms Index. Www.armsinsider.com/education/whatistrin/whatistrin.asp. What is the TRIN?
TRIN (by Arthur Hill) Richard Arms developed the TRIN, or Arms index, as a contrarian indicator to detect overbought and oversold levels in the market. The McClellan Oscillator & Summation Index - Technical Analysis Learning - McClellan Financial. Every day that stocks are traded, financial publications list the number of stocks that closed higher (advances) and that closed lower (declines).
The difference between these numbers is called the daily breadth. The running cumulative total of daily breadth is known as the Daily Advance-Decline Line. It is important because it shows great correlation to the movements of the stock market, and because it gives us another way to quantify the movements of the market other than looking at the price levels of indices. The second chart shows an example of the daily breadth. Each tick mark represents one day’s reading of advances minus declines. We use two different EMAs: one with a 10% smoothing constant, and one with a 5% smoothing constant. The McClellan Oscillator offers many types of structures for interpretation, but there are two main ones.
Investing. MACD - Moving Average Convergence Divergence - Technical Analysis. Kondratieff Waves... Crashed Our Economy! This article presents a divergent hypothesis from Tyler Cowen's lack of 'low hanging fruit' hypothesis for the current Stagnation (discussed in my previous post).
I was going to make one quick mention of a pure economics based thought that might have contributed to our current depression but it was based on an understanding inversion (see tiny writing below): The 1970s switch of Government policy away from Keynesian practises towards monetary policies that buffered the economy from depressions and recessions may have precipitated the financial crisis by their very success: economic fluctuations shake the wastage out of the system, forcing inefficient businesses to shut down, reform or lay off unproductive staff. Keeping things steady just allowed more detritus to accumulate on the buckaroo donkey, saving all the pain for one big, inevitable mess... Well, actually that's complete nonsense! Bear Call Spread. The chief difference is the timing of the cash flows.
The bear put spread requires a known initial outlay for an unknown eventual return; the bear call spread produces a known initial cash inflow in exchange for a possible outlay later on. Outlook Looking for a steady or declining stock price during the life of the options. As with any limited-time strategy, the investor's long-term forecast for the underlying stock isn't as important, but this is probably not a suitable choice for those who have a bullish outlook past the immediate future.
It would require an accurately timed forecast to pinpoint the turning point where a coming short-term dip will turn around and a long-term rally will start. Summary A bear call spread is a limited-risk, limited-reward strategy, consisting of one short call option and one long call option. Stock Screener - Overview. Phils Gang. Bull Put Spread - Tutorial. OptionsXpress. OptionsXpress, Inc. makes no investment recommendations and does not provide financial, tax or legal advice.
Content and tools are provided for educational and informational purposes only. Any stock, options, futures, or forex symbols displayed are for illustrative purposes only and are not intended to portray a recommendation to buy or sell a particular security. Products and services intended for U.S. customers and may not be available or offered in other jurisdictions. Online trading has inherent risk. System response and access times may vary due to market conditions, system performance, volume and other factors.
OptionsXpress is an Introducing Broker to Forex Capital Markets, LLC ("FXCM"), which will hold your Forex account and the respective funds and will act as the counterparty to your Forex trades. Charles Schwab & Co., Inc., optionsXpress, Inc., and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Earnings Whispers. The Trading Methodologies of W.D. Gann: A Guide to Building Your Technical Analysis Toolbox > About the Author : Safari Books Online. Forex Calendar. Stock market trading and forex trading strategy - Article_page1. Are You Consistent?
Traders often get frustrated when they see the market doing the "unexpected. " This occurs because they have a pre-conceived idea of what the market "should do. " And when it doesn't behave according to their Wave Count, or their Gann calculations or their Fibonacci cluster or their indicators' clear signals ... well, they just get frustrated. This comes from a belief that the market has a pattern that is knowable and it should follow consistently. People much smarter than us have been studying the markets for many, many years.
Gann. Wave59. Forex Calendar.