for a three-wave countertrend price movement use in Elliott wave
analysis. Wave A is the first price wave against the trend of the
market. Wave B is a corrective wave to Wave A. Wave C is the final price
move to complete the countertrend price move. Elliott wave followers
study A and C waves for price ratios based on numbers from the Fibonacci
candlestick pattern in which an upside gap doji star (where the shadows
do not touch) is followed by a downside gap black candlestick where the
shadows also do not touch. It is considered to be a top reversal signal.
characteristic of a market bottom where smart money is said to be buying
from uninformed hands. Accumulation takes place against a negative news
background. Accumulation also applies to the basing process in chart
patterns or formations. It is the first of three phases in a major
trend, the other two being markup and distribution.
and/or forecasting prices with continuously updated weighting of past
Advance-Decline Line (A/D Line)
the cumulative running total of the plurality of advancing over
declining issues for a given period, usually a day. It is used as a
proxy for the broad market or the price of the average share. When the
market, as measured by the DJIA or S&P Composite makes a new high
and this is not confirmed by the A/D Line this is known as a negative
divergence. Negative divergences are interpreted as a bearish sign.
Positive divergences develop at market bottoms when the A/D line
fails to confirm a new low in the averages. These are regarded as
bullish signs. Generally speaking the longer the divergences the more
important the signal. Some A/D lines, such as the AMEX, OTC and that in
Japan appear to have a permanent downward bias and should only be used
for very short-term analysis over a period of a few weeks.
The loss attributable to price movement against the position in any one trade.
Privately circulated publications that comment upon the future course of financial markets, and for which a subscription is usually required.
for "automated knowledge acquisition." Refers to the use of
programs to create knowledge needed by other programs (usually expert
a measure of stock performance independent of the market. The alpha
value for an investment portfolio is the amount that is earned above
that a given point of reference; a stock with a positive alpha is
outperforming the market based on its own merits, as opposed to a stock
with a negative alpha, which is under performing the market based on its
Depository Receipts (ADRs)
that are issued by a bank of U.S. origin and traded in the U.S. as
domestic shares. The certificates represent the foreign securities that
the bank holds in that security's country of origin.
Pitchfork consists of three parallel lines.
The first begins at the left-most point selected and is drawn so
it passes directly between the right-most points.
This line is the handle of the pitchfork.
The second and third trendlines are then drawn beginning at the
right-most points and are drawn parallel to the first line.
These lines are the pitchfork's tines. Interpretation is based on
the same principles as any other trendline.
simultaneous purchase and sale of two different, but closely related,
securities to take advantage of a disparity in their prices.
known as the Trading Index (TRIN): It is an oscillator of market breadth
indicator which also uses volume in its construction. It moves inversely
with the market, which means that a low number i.e. between 30-50 is
bullish and a high one, in excess of 150 is bearish. The index is often
smoothed with a simple moving average.
earthly cycle, such as a market cycle, which can be scientifically
related to the physics of the planetary system.
Any earthly cycle, such as a market cycle, which can be scientifically related to the physics of the planetary system.
option whose strike price is nearest the current price of the underlying
Directional Movement Index (ADX)
indicator that measures the intensity of a trend.
An option that's pay-off depends on the average value of an underlier over a specified period.
Average True Range
A moving average taken of the true range.
© 1995-2008 Pring Graphics
All rights reserved