
A quick look at one of our favourite indicators shows investors are feeling more confident about the outlook for stock markets. The chart shows the Chicago Board Options Exchange’s volatility index or VIX (red line) versus the S&P 500 Index (blue line) for the ...
Indices
You are on page 1 of 2So, as global stock markets rally at the prospect of sharp interest rate cuts, have we found a bottom? I don’t think so. Capitulation. That’s what we are looking for...and I don’t think we are there yet. Capitulation happens when investors completely give up on ...
Double bottom breakouts occur where a market finds support at a previous low, and breaks back above previous resistance. In the Dow Jones hourly chart above we can see the lows that held on 10th and 17th of March; the question now is can we confirm and hold ...
After making long sustained moves in one direction, many markets retrace a part of the move before continuing on further.
For example, if a stock increased from $5 to $10 and then slipped back 50%, this retracement would take it to $7.50 before it continued ...
They are charts that provides at-a-glance equilibrium prices for specified securities. Ichimoku translates from Japanese into English as "one look". This charting technique was created by a Japanese newspaper writer. It analyses the mid-points of historical ...
Island Reversals
They occur near end of a market move - it doesn't really matter whether it is up or down. All the price objectives are achieved, but prices leap forward at the last gasp. However the upward leap quickly fades and prices turn lower within a ...
Re-lighting our Japanese Candlesticks
In the 1700s a Japanese man named Homma, a trader in the rice market, developed a method to analyse rice contracts that became known as candlestick charting. Basically, what it does is display the high, low, open and ...
Today’s teach-in: Bollinger Bands part II
Last week we went through the basic mechanics of Bollinger bands. I thought this week we could look at them in a real live situation. Above you can see a chart of the FTSE 100 with the Bolly bands attached. Notice ...
It always pleases me when I can point to practical, real world examples of what we have learned in our teach-ins. The fact that I've found three makes me feel especially smug. In the first instance we will look at the Hang Seng on October 3 (below), which ...
In a nutshell, the each of the two bands are placed two standard deviations above and below the moving 20-day average. The two standard deviations ensure that 95% of the price data will fall between the two trading bands.
We use the upper and lower bands to ...
Indices
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