Chart of the Week continued
- Article Dates:
- 2013
- All Months
Displaying Matches 1 thru 10 of 11 Found. NEXTLAST
The "Relative Strength" (RS) indicator (not to be confused with the" Relative Strength Index" indicator) allows a trader to compare the performance of a stock to the performance of the general market. The indicator generally uses the S&P 500 index for comparison. The S&P 500 is a weighted stock market index composed of 500 of the largest companies in the US economy; it is used as a proxy for the general market....
Beta is a statistical measure of an asset's volatility compared to the general market. Portfolio managers use beta to project expected returns using a pricing model. Investors use beta to find stocks with the potential to become stock rockets, making much larger moves relative to the general market....
For longer term investors, it is generally best to use weekly charts when trying to build a winning portfolio of stocks. The 50/50 strategy is a great method for entering stocks that trigger a buy alert near the "weekly" 50 exponential moving average (50 EMA). Usually, if an investor misses the initial trend breakout...
After a breakout, a stock often takes a few, or several, days to rest. This is the time when a trade can be at risk. By watching volume after the breakout, the investor can find clues about the strength of the move and whether it is likely to continue up....
Using dual timeframes is one of the major edges in trading. Commonly, the weekly timeframe (big picture) is combined with the daily timeframe (little picture) as seen in the two charts of Michael Kors...
Buying gaps can be an easy way to enter stocks in high demand, but discerning between common gaps and breakaway gaps is essential for success.Traders may shy away from buying gaps because they might see the stock as too "extended," and they may figure they "missed it." Using a few rules can help increase confidence in buying gaps....
Buying breakouts can be frustrating when price appears to breakout, but fails, trapping the longs and creating a negative gain. With the ADX indicator, the trader can measure the strength of the breakout and improve the probability of success in the trade....
The recent IPO (initial public offering) of Potbelly Corp (PBPB) occured on October 4, 2013, when the stock opened at a price of $28 and climbed to $38 (+35%) on the same day. That's a pretty nice gain for one day! However, in the next 7 days, the stock fell to a low of $23, a 40% decline....
During this past summer (July 16th), I did a webinar presentation for eTraders Expo. The topic was how to find Power Trending stocks. One of the best ways I know is to use the ADX indicator. ADX quantifies trend strength, so it allows you to differentiate between weak and strong trends....
In my book, Invest with Success--Big Profits for Small Investors, I refer to institutional investors as the "BIGs." The BIGs are the big money mutual funds, hedge funds, endowment funds, insurance funds, and pension funds. They are buying millions of dollars worth of stock, and their action is necessary for a sustained stock trend. As "small" investors, we ride the trends that the BIGs create....