trendprofiles

Volumes: The volumes are a basic indication of a buyers/sellers interest for a stock. During trend reversals volumes tend to decline indicating a lack of interest on the part of a buyer/seller to continue with a given trend.

Open Interest: Open interest  is an unsquared position that reflects after a trading day. 1 buy and 1 sell if carried to the next trading day, make up to 1 open interest. This figure is generally released by the exchange.

Support: Is a level where potential buying interest is seen and hence a floor to the falling prices. Also referred as a region of sufficient demand to hold a stock from falling and also provide a basis for trend developments on the upside.

Resistance: On the contrary to support, the resistance is defined as a level where potential selling interest is seen and hence caps rising prices. Also referred to a region of sufficient supply to hold a rising stock and provide basis for trend developments on the down side.

Trend Lines: A trend line is a subject of a chart which helps in identifying a main trend of a stock. While one may argue that, a main trend is very much visible and sensed upon by anyone without even knowing a trend line, then what is the utility? Knowing a trend line can serve potential rising (falling) supports (resistances) and serves as a basic guide for trend following systems.

Moving averages: The moving averages are a n day average of closing price of a stock which serves as a measure of how much is the stock overvalued/undervalued to a mean. The most commonly used moving averages are 10Day,20 Day, 50Day, 200 Day etc.

Bollinger bands: The Bollinger bands are plotted as a standard deviations above/below a moving average.  As the stock progresses the bands adjust themselves and consistently signal an increase/decrease of volatility.

Momentum: Measures the velocity of the price trend and is considered as a vital guiding factor in determining an early stages of a trend reversal.

RSI (Relative Strength index): The RSI is calculated using formule  RSI = 100- (100/(1+RS))
The term RS is the average of up days/ down days of n day time frame.

So, the formula signifies the stock is being tested for its strength of existing position relative to its past. By measing this way, the indicator lends itself within a fixed band of 0-100 with a reading beyond 70 considered overvalued and a reading below 30 oversold.

ROC (Rate of change): This indicator compares the price of today with the price n days ago. Another variation in ROC is a percentage change method, measuring a price move with regards to the actual percentage move to indicate the rate of ascent/descent of a stock.

MACD (moving average convergence and divergence): Is an indicator which compares 2 moving averages , mostly exponential moving averages. The system gets its name from the fact that the 2 moving averages converge and diverge from each other. The most popular being 12-day and 26-Day.

Stochastics: Yet another leading indicator which is based on the assumption that assumption, prices tend to close near the upper part of the trading range during an uptrend and near the lower part during a down trend. A stochastics buy/sell signal is generated when the %K (fast line) crosses above /below %D( slow line).

ADX (Average directional Index): is used to calculate directional characteristics of a stock. An increase or decrease of this indictor is a measure of whether a rise/fall is potential enough to make a leap further.

is a trailing stop loss technique. The formula is designed so that the stop  is concictently being tightened as the market moves in favour.