Showing posts with label sigma. Show all posts
Showing posts with label sigma. Show all posts

Wednesday, July 2, 2008

Ichimoku Kinko Hyo




The Ichimoku Kinko Hyo Japanese charting technique was developed before World War II with the aim of portraying in a snapshot where the price was heading and when was the right time to enter or exit the market.

Ichimoku Kinko Hyo is a phrase in Japanese language which means “Chart Equilibrium at a glance”.




Moving Average Convergence Divergence (MACD)




This indicator was generated by Gerald Appel as the difference between two exponentially smoothed averages (EMA).

It’s one of the simplest and most reliable indicators available.

Although there are three moving averages mentioned you will only see two lines one fast and one slow, if the faster signal line crosses above the slower line then a buy signal is generated and vice versa.




Standard deviation




Standard deviation is a statistical measurement of volatility.

It provides a good indication of volatility.It based on past data to measures the tendency of data to be spread out.

When looking at the historic returns of a mutual fund, standard deviation can be used to measure the variation of expected return that has taken place in the past giving a sense of range of performance that can be expected given different probabilities of return for the future.






Average True Range




This indicator of volatility measures selling pressure and buying pressure. When the ATR rises there is more and more pressure and a strong volatility of the stock.When the ATR decreases there is less and less pressure and a low volatility