As a market becomes volatile, its Bollinger bands will expand (referred to as expansion); as it flattens out they will contract (contraction). Active investors may choose to use this technical indicator as a stock evaluation tool. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.
GANDHI SPECIAL TUBES LTD. -$ (GANDHITUBE.BO)'s Williams Percent Range or 14 day Williams %R presently is at -99.46. Filo Mining Corp (FIL.V) now has a 14-day Commodity Channel Index (CCI) of 205.05. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. Author and trader Bill Williams created The Awesome Oscillator Indicator (AO) and outlined the theory and calculation in his book "New Trading Dimensions". A level under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. A reading from -80 to -100 would signal an oversold situation. Chart analysts may also use the indicator to project possible price reversals and to define trends. The Average Directional Index or ADX is often considered to be an important tool for technical trading or investing. Investors may be hoping for sustained upward trends where stocks calmly and steadily advance in that direction. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. The 14-day ADX for Hang Sang Siu Po International Holding Co Ltd (3626.HK) is standing at 11.36. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend.
When completing stock analysis, investors and traders may opt to review other technical levels. Vanguard S&P 500 UCITS ETF USD (VUSA.L) now has a 14-day Commodity Channel Index (CCI) of -132.61.
Tracking moving averages is one of the most universally used techniques for performing technical stock analysis. The CCI was developed to typically stay within the -100 to +100 levels. The indicator is computed by using the average losses and gains of a stock over a certain time period. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. A reading under 30 may indicate that the stock is oversold, and possibly undervalued.
Traders are paying renewed attention to shares of Maxi-Cash Financial Services Corp Ltd (5UF.SI). Currently, Filo Mining Corp (FIL.V) has a 14-day ATR of 0.03. The RSI oscillates on a scale from 0 to 100. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move. The opposite is the case when the RSI line is heading lower. The RSI may be useful for spotting abnormal price activity and volatility. One of the more popular combinations is to use the 50-day and 200-day moving averages. When a market's price continually moves outside the upper parameters of a Bollinger band, it can be considered to be overbought, and when it moves below the lower band it could be considered oversold. Using a bigger time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. Trading and investing can carry a major emotional component. Even after careful research, being able to pull the trigger on a trade may still involve squashing the fear that comes with the thought of being wrong. Finding continued success in the stock market may entail keeping the portfolio balanced, but also finding the courage to get in when necessary, or get out when needed. Developing this confidence may take a lot of practice and determination.