RE: Some amateur TA... As of a little bit ago, the spread was up to 7% with an macd upward cross-over indicating an absence of liquidity by appreciating asks. Volume by price indicates that over 6 months, 85% of all buyers have paid .25+ which indicates a good base is building, combined with decreasing liquidity.. I need say no more.
.
. |
| Price | Change | % Change | Volume | Day High/Low | 52 Week High/Low | 0.295  | +0.005 | +1.72% | 293,851 | 0.295/0.27 | 1.18/0.12 | |
|
.
Last Traded:
7/6/09 13:29 EST | | Transaction Volume
64,500 | | Open
0.28 | | Prev. Close
0.29 | | Bid
0.275 | | Ask
0.295 | | Bid Size
12,500 | | Ask Size
32,000 | |
MACD
Gerald Appel's MACD (Moving Average Convergence/Divergence) indicator shows the relationship between two moving averages of prices. MACD is derived by dividing one moving average by another. It is based on the point spread difference between two exponential moving averages (EMA) of the closing price.
The basic MACD trading rule is to sell when the MACD falls below its signal line and to buy when the MACD rises above its signal line.
Some analysts use MACD as an oscillator and believe it is most effective in wide-swinging trading markets. They believe that when the MACD rises dramatically, it is likely that the security's price is overextending and will soon return to more realistic levels.
Other analysts prefer to use MACD as a trend-following indicator, attempting to spot divergences in chart patterns. For example, a bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. These divergences are most significant when they occur at relatively overbought/oversold levels.
The MACD indicator in BigCharts references the following default parameters:
RSI
Relative Strength Index (RSI) is a momentum indicator which measures a security's price relative to itself and its past performance, thereby indicating its internal strength.
RSI quantifies price momentum. It depends solely on the changes in closing prices. RSI is less affected by sharp rises or drops in a security's price performance and, therefore, may give a better velocity reading than other indicators.
RSI is calculated by taking the average of the closes of the up bars (the up frequency intervals) and dividing them by the average of the closes of the down bars. The time frame specified determines the volatility of the indicator. For instance, a 9-day time period under study will be more volatile than a 21-day time span.
The RSI ranges between 0 and 100. RSI is said to indicate an "overbought" condition when it is above 80 and an "oversold" condition when it is below 20. However, the buy and sell level varies depending on the amount of bars used in the calculation. A shorter span of bars will result in a more volatile indicator which reaches further extremes. A longer amount of bars used in the calculation results in a less volatile reading which reaches extremes far less often.
The RSI indicator in BigCharts references the following default parameters: