Moneymunch.com

The Moneymunch editorial staff is a team of experienced financial writers and analysts with over a decade of experience in the financial markets. They have previously contributed to popular financial blogs and newspapers, and are passionate about providing accurate and up-to-date information to help both investors and traders make informed decisions. Trust the Moneymunch editorial staff to provide reliable and effective financial advice that can help you achieve your financial goals.

Commodity Channel Index (CCI)

5 2952
This is the 20th Day course in a series of 60-Days called “Technical Analysis Training”

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

technical-analysis-training

Commodity Channel Index (CCI)

Effect of CCI

Recognia identifies the following CCI events:

  • A bullish event whenever the CCI rises above the +100% line.
  • Yet another celebration signalling the end of the previous bullish trend happens whenever the CCI subequently crashes below the +100% line.
  • A bearish celebration whenever the CCI falls below the -100% occupation.
  • Yet another celebration signalling the completion of the previous bearish trend occurs whenever CCI subequently rises above the -100% line.

Story

Though the name CCI utilizes the term “commodity” the oscillator is commonly put to use in examining equities. A CCI is dependent for a assessment of price and moving average. The CCI is expressed because percentage that oscillates stuck between -100 and 100. However, our levels can feel surpassed.

Typically, if or when the price is better when compared to the moving average, then your CCI could increase in the direction of or above the 100% occupation. If in case the price drops below the moving average, then the CCI will drop toward or before the -100% occupation. There are divergences and also exceptions to this price/CCI behavior which technical analysts needs to be conscious of when which makes trades.

This description offers a simplified demonstration of CCI as well as its calculation – the actual computation is truly involved. The Encyclopedia of Technical Marketplace Indicators, by Robert W. Colby, provides a detailed summary of the data which are used to derive CCI. The CCI calculations are really additionally freely available on top of a range of sites…

Commodity-Channel

Trading Factors
Technical analysts utilize CCI in a few of techniques 1) to anticipate a price reverse, and 2) to determine overbought or perhaps oversold circumstances.

To predict a price reverse, compare the direction trend lines for the price and additionally CCI. If in case the way of the price trend occupation is different when compared to the way of the CCI trend occupation a divergence is stated to have occurred, along with a price reversal might follow.

The quintessential popular method to take advantage of the CCI is to watch for overbought or perhaps oversold circumstances. An extra stock is considered overbought when it is hits 100% or a lot higher, and oversold when it is -100% or perhaps lower. Some technical analysts utilize CCI with the view which some sort of overbought condition precedes a price drop, and additionally that the oversold condition precedes a rise in price.

Colby, however, identifies the trading procedures for using CCI since follows:

  • Buy long when CCI rises above 100%
  • Purchasing in length signifies which you are buying stock to own with the expectancy that price could increase. You expect to profit a profit as soon as you offer the extra stock at just a higher than average price.
  • Sell long when CCI crashes below 100%
  • Selling in length means selling extra stock which you own, really, at a higher up price when compared to as soon as you purchased it to ensure that an individual will earn a profit.
  • Sell short when CCI crashes below -100%
  • Selling short will mean you are selling stock which you have lent with the expectancy which price can fall. If in case the price falls, you can easily money by buying back the extra stock at a lower price and also utilizing it to change the higher-priced extra stock which you lent. For example, should you decide sell extra stock for $100.00 per share, buy it back later on at just $70.00 per share, and then homecoming the stock to the lender, the profit is $30.00 per share.
  • Cover short whenever CCI rises above -100%
  • Covering short will mean you are buying stock to replace extra stock which you have lent. To maximize your profits {you will need to purchase rear the extra stock at a price who is lower when compared to it was actually when you sold.

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

Continue reading

Christmas

0 2397

Christmas

I hope that your Christmas will be enjoyable and may the essence of Christmas always remain with you.

Christmas-xmas

Continue reading

Do you want to be a successful trader?

0 3303

stock-market-riskYesterday, When I was reading articles on “Successful People Do To Reach Their Dreams”. Few things that these hungry and unstoppable people did to see the success they all eventually achieved. I read about Risk Point which is always existence. If you have strength to fight with Risky without surrender your self. Then you can be winner. Well…read what i read!

Risk.

No risk, no reward. Yes it’s an over-used, cliché of a phrase. But it’s true. Those who have achieved real success have often risked the most to get there.

There have been billions of people throughout history who have had the ability to achieve greatness, whether it was the talent or smarts, they had it. What they didn’t have was the guts to risk the life that they were living. They also didn’t have the work ethic to see their talent realized.

The greatest tragedy in life is wasted talent ~ A Bronx Tale

Your big, audacious dream might be to marry the girl of your dreams and have a family with her. You risk might be to leave the career that you love in order to support her and your family. Your dream might be to help millions live longer, healthier lives. Whatever your dream is, give it enough of a chance to be realized.

Risk if you truly want to see the reward.

Find your dream. Then risk everything to get it.

Continue reading

Bollinger Bands Oscillator

7 4122
“Technical Analysis Training”
This is the 19th Day course in a series of 60-Days called “Technical Analysis Training”

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

Bollinger Bands Oscillator

Effect of Bollinger Bands Oscillator

Whenever price crosses among the Bollinger band (upper or perhaps lower), a bullish or bearish event is generated hinging on the movement of the crossovers.

Story

A Bollinger bands use standard deviation along with a moving average to aid traders determine purchase and also provide activities, or perhaps to help confirm various other patterns. A price chart which utilizes Bollinger bands displays four lines; price, the upper and also lower Bollinger bands, along with the moving average.

The upper and also lower Bollinger bands usually appear 2 standard deviations above and additionally below the 20-day moving average. Recognia supports these typical setup.

For shorter-term trends, some technical analysts prefer 1 1/2 standard deviations by having a 10-day moving average. For longer-term trends, a 2 1/2 classique 50-day moving average might better suit their reasons.

Price tends to bounce between your upper and lower Bollinger bands. The width stuck between the bands does not remain constant. Usually, the growth or contraction of the bands indicates periods of high or low volatility.

Bollinger-Bands

Trading Factors
In Technical Analysis Explained, Martin J. Pring describes exactly how he interprets price charts which utilize Bollinger bands. Here is a summary of precisely what your man keeps in your mind whenever making trading decisions:

  • When the bands agreement, price is considered even more volatile. A price breakout might happen. Alike, whenever the bands boost, price is considered less volatile.
  • Whenever the price touches or exceeds either the upper or perhaps lower bands, some kind of event is signaled, like the price trend commonly continues. However, make use of the event because an indicator just, as price may reverse.
  • To determine whether or not a price reversal is imminent, observe exactly how price reacts following the initial traversing. If in case the price helps to make several unsuccessful endeavours to cross or touch a group once again, you might see a price trend reverse.

Use Bollinger bands that can help monitor and additionally anticipate price behavior. However, John Bolllinger himself acknowledges that other factors, for example RSI and additionally patterns, must be considered for trading choices.

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

Continue reading

Triple Moving Average Crossover

1 4244
This is the 18th Day course in a series of 60-Days called “Technical Analysis Training”

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

technical-analysis-training

Triple Moving Average Crossover

Effect of Triple M.A.

When a shorter moving average (of a security’s price) crosses a moderate moving average, as well as the medium crosses a longer moving average, a bullish or bearish signal is produced this depends on the way of the crossovers.

Story

A moving average is an indicator that concerts the average worth of a security’s price more than a period of time. This excellent type of event occurs whenever a shorter moving average crosses a moderate moving average, and also the medium moving average crosses a longer moving average. The moving average times used in the celebration are really 4, 9 and 18 day. Whenever the 4-day crosses above/below the 9-day moving average, the event possess “started”. The celebration is “confirmed” whenever 9-day moving average crosses above/below the 18-day moving average.

A bullish signal is produced once the direction of the crossovers is above e.g. the shorter crosses above the moderate plus the moderate crosses above the longer. A bearish alert is generated whenever the movement of the crossovers is below.

These games are really based on top of straight forward moving averages. A straight forward moving average is certainly one just where equal weight is taking into account to any single price around the calculation period. For instance, a 9-day straight forward moving average is calculated if you take the sum of the very last 9 days of a stock’s close price and additionally then separating by 9. Other kinds of moving averages, that are not supported in this case, are really weighted averages and additionally exponentially smoothed averages.

triple-moving-average-crossover

Trading Factors
Moving averages are lagging indicators because they use ancient information. Making use of them because indicators will likely not get you in during the bottom and also away during the top but can get you in and additionally out somewhere between.

The couple work ideal in trending price designs, in which a good uptrend or downtrend is strongly in place.

Factors that Supports

Indicators that are fine appropriate to using moving averages consist of the MACD and Momentum.

Main Behavior
Moving averages flourish in trending markets even so they generate numerous false signals in choppy, sideways markets.

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

Continue reading

The Fiscal Cliff Explained

0 3170

“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.

Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect. According to Barron’s, over 1,000 government programs – including the defense budget and Medicare are in line for “deep, automatic cuts.”

In dealing with the fiscal cliff, U.S. lawmakers have a choice among three options, none of which are particularly attractive:

They can let the current policy scheduled for the beginning of 2013 – which features a number of tax increases and spending cuts that are expected to weigh heavily on growth and possibly drive the economy back into a recession – go into effect. The plus side: the deficit, as a percentage of GDP, would be cut in half.

They can cancel some or all of the scheduled tax increases and spending cuts, which would add to the deficit and increase the odds that the United States could face a crisis similar to that which is occurring in Europe. The flip side of this, of course, is that the United States’ debt will continue to grow.

They could take a middle course, opting for an approach that would address the budget issues to a limited extent, but that would have a more modest impact on growth.

Can a Compromise be Reached?

The oncoming fiscal cliff is a concern for investors since the highly partisan nature of the current political environment could make a compromise difficult to reach. This problem isn’t new, after all: lawmakers have had over a year to address this issue, but Congress – mired in political gridlock – has largely put off the search for a solution rather than seeking to solve the problem directly. Republicans want to cut spending and avoid raising taxes, while Democrats are looking for a combination of spending cuts and tax increases. Although both parties want to avoid the fiscal cliff, compromise is seen as being difficult to achieve – particularly in an election year. There’s a strong possibility that Congress won’t act until the eleventh hour. Another potential obstacle is that the next Congress won’t be sworn in until January 3, after the deadline.

The most likely outcome is another set of stop-gap measures that would delay a more permanent policy change until 2013 or later. Still, the non-partisan Congressional Budget Office (CBO) estimates that if Congress takes the middle ground – extending the Bush-era tax cuts but cancelling the automatic spending cuts – the result, in the short term, would be modest growth but no major economic hit.

Possible Effects of the Fiscal Cliff

If the current laws slated for 2013 go into effect, the impact on the economy would be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion, the CBO estimates that the policies set to go into effect would cut gross domestic product (GDP) by four percentage points in 2013, sending the economy into a recession (i.e., negative growth). At the same time, it predicts unemployment would rise by almost a full percentage point, with a loss of about two million jobs. A Wall St. Journal article from May 16, 2012 estimates the following impact in dollar terms: “In all, according to an analysis by J.P. Morgan economist Michael Feroli, $280 billion would be pulled out of the economy by the sunsetting of the Bush tax cuts; $125 billion from the expiration of the Obama payroll-tax holiday; $40 billion from the expiration of emergency unemployment benefits; and $98 billion from Budget Control Act spending cuts. In all, the tax increases and spending cuts make up about 3.5% of GDP, with the Bush tax cuts making up about half of that, according to the J.P. Morgan report.” Amid an already-fragile recovery and elevated unemployment, the economy is not in a position to avoid this type of shock.

The cost of indecision is likely to have an effect on the economy before 2013 even begins. The CBO anticipates that a lack of resolution will cause households and businesses to begin changing their spending in anticipation of the changes, possible reducing GDP before 2012 is even over.