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Using The Detail Stock Table
Most of the column headings in the detailed stock table are self-evident; however, here are
some valuable insights into making the most of the information provided.
Financial Summary Column
Besides the basic financial fundamentals,
there are two links you should always check on
- The "Industry" link. The sector
movement as a whole, has a very strong influence on any stock within that sector. So,
for example, if Intel (intc) shows strong Directional Movement trending numbers, then confirm that
the "Techology/Semiconductor" sector is also performing positively and within that sector,
that the leaders of that sector are leading.
- The "Key Statistics" link. Within the "Key Statistics"
section check on the "Share Statistics" section so that you are aware of the float
size of the stock in question. Small floats
can be the potential for rapid price movements up or down.
Charts
The chart that displays as a result of clicking on the link has been carefully
chosen to help support your stock trending analysis. In particular:
- The standard 14-day +DI14, -DI14 and ADX numbers can be visualized graphically so
you can visualize where the crossover occurs in conjunction
with the stock's price movements.
- The quicker 8-day +DI14, -DI14 and ADX numbers are also displayed for those who are
willing to accept a higher risk in return for possibly earlier directional
movement trending signals.
- The RSI (another concept pioneered by Welles Wilder) indicatoris useful
as an overbought/oversold indicator. It is also useful in combination
with the ADX indicator under certain conditions when determining
whether one should buy/sell - refer to the article chuck Lebeau, Combining RSI and ADX
- An 8-day exponential moving average (based on price) is provided. If
you are considering a long position (i.e. uptrend), then the stock
should be consistently trading above this line for the past several
trading days. Conversely, if you are considering a short position (i.e.
downtrend), then the stock should be consistently trading below this line
for the past several days.
- The Bollinger band can be used as a momentum signal. If the band contracts
with light volatility, then if prices break the upper band, it is a signal
to go long whereas if prices break below the lower band, then the signal
is to go short. Look for this to confirm the Directional Movement trend signal.
- Always consider volume as another important source of confirmation for any
significant price movement.
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