Thursday, November 13

Stock price and Volumn

Importance of volumn:
upside-downside ratio= volumn of stocks that increased/ volumn of stocks that decreased

  • If greater than 1.5 overbrought => bearish
  • If smaller than 0.75, oversold =>bullish

Support and resistance levels

Moving averaging line

Relative Strength
= stock price/ market price
If increase over time => outperforming stock;
If decrease over time =>underperforming stock

Graphs
For example, bar charts (price against time), point and figure charts (Y-price , x- only plot movement if a preset price reversal occurs)

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