tag:blogger.com,1999:blog-48947100784588092682017-09-24T14:10:33.254+05:30Technical Analysis for beginnersRajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-4894710078458809268.post-32444009463886011222013-09-25T11:18:00.001+05:302013-09-25T13:36:55.505+05:30Stochastic Oscillator – technical analysis indicator<div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:DoNotOptimizeForBrowser/> </w:WordDocument></xml><![endif]--> <br /><div class="MsoNormal"><!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:DoNotOptimizeForBrowser/> </w:WordDocument></xml><![endif]--> </div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><b>How to make Stochastic Oscillator – technical analysis indicator in Excel sheet</b></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Stochastic Oscillator (also called Stoch indicator) is a technical indicator that compares a security's closing price to its price range over a given time period. </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Stochastic Oscillator follows the speed or the momentum of price. As a rule, the momentum changes direction before price. </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">The Stochastic Oscillator indicator’s sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result.</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">So, bullish and bearish divergences in the Stochastic Indicator’s can be used to look for reversals. Because the Stochastic Oscillator is range bound from 0 to 100, is also useful for identifying overbought and oversold levels.</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><b>This indicator is calculated with the following formula:</b></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><b>%K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100</b></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><b>%D = 3-day SMA of %K</b></span></div><pre><span style="font-family: Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Arial Unicode MS";"> </span></span></pre><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Lowest Low = lowest low for the previous period</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Highest High = highest high for the previous period</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">%K is multiplied by 100 to move the decimal point two places</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><b>The default setting for the Stochastic Oscillator indicator is 14 periods</b>, which can be days, weeks, months or an intraday timeframe. </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">A 14-period %K would use the most recent close, the highest high over the last 14 periods and the lowest low over the last 14 periods. %D is a 3-day simple moving average of %K. This line is plotted alongside %K to act as a signal or trigger line</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a three-period moving average called the "%D".</span></div><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;">As it’s a range bound oscillator from 0 to 100, the Stochastic Oscillator makes it easy to identify overbought and oversold levels. The oscillator ranges from zero (0) to one hundred (100). </span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;">No matter how fast a security advances or declines, the Stochastic Oscillator will always fluctuate within this range. Traditional settings use 80 as the overbought threshold and 20 as the oversold threshold. These levels can be adjusted to suit analytical needs and security characteristics. Readings above 80 for the 20-day Stochastic Oscillator would indicate that the underlying security was trading near the top of its 20-day high-low range. Readings below 20 occur when a security is trading at the low end of its high-low range. </span><br /><span style="font-family: Arial,Helvetica,sans-serif;">Before looking at chart, it’s important to note that overbought readings( above 80)<span style="mso-spacerun: yes;"> </span>are not necessarily bearish.</span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;"><b>Securities can be overbought and can remain overbought during a strong uptrend. </b></span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;">Closing levels that are consistently near the top of the range indicate sustained buying pressure. In a similar vein, oversold readings(below 20) are not necessarily bullish.</span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;"><b>Securities can also oversold and can remain oversold during a strong downtrend.</b></span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;">Closing levels consistently near the bottom of the range indicate sustained selling pressure. It is, therefore, important to identify the bigger trend and trade in the direction of this trend. </span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;">Look for occasional oversold readings in an uptrend and ignore frequent overbought readings. Similarly, look for occasional overbought readings in a strong downtrend and ignore frequent oversold readings. </span><br /><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">The Stochastic Oscillator is based on George Lane's original formulas for %K and %D.<span style="mso-spacerun: yes;"> </span>%K in the fast version that appears rather choppy. %D is the 3-day SMA of %K.</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">So for calculation of Stochastic Oscillator Indicator in excel, formula is</span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;"><b>%K = 100[(C - L14)/(H14 - L14)]</b></span> </div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span><span style="font-family: Arial,Helvetica,sans-serif;">C = the most recent closing price </span><br /><span style="font-family: Arial,Helvetica,sans-serif;">L14 = the low of the 14 previous trading sessions </span><br /><span style="font-family: Arial,Helvetica,sans-serif;">H14 = the highest price traded during the same 14-day period.</span><br /><span style="font-family: Arial,Helvetica,sans-serif;"><br style="mso-special-character: line-break;" /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">%D = 3-period moving average of %K</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">There are three versions of the Stochastic Oscillator, which was developed by George C. Lane in the late 1950s as a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods.</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><span style="mso-spacerun: yes;"> </span>The Fast Stochastic Oscillator is based on George Lane's original formulas for %K and %D.<span style="mso-spacerun: yes;"> </span>%K in the fast version that appears rather choppy. %D is the 3-day SMA of %K. </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">In fact, Lane used %D to generate buy or sell signals based on bullish and bearish divergences. Lane asserts that a %D divergence is the "only signal which will cause you to buy or sell." </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Because %D in the Fast Stochastic Oscillator is used for signals, the Slow Stochastic Oscillator was introduced to smooth<span style="mso-spacerun: yes;"> </span>%K with a 3-day SMA, which is exactly what %D is in the Fast Stochastic Oscillator. </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">%K in the Slow Stochastic Oscillator equals %D in the Fast Stochastic Oscillator</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Fast Stochastic Oscillator: </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Fast %K = %K basic calculation</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Fast %D = 3-period SMA of Fast %K</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Slow Stochastic Oscillator: </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Slow %K = Fast %K smoothed with 3-period SMA</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Slow %D = 3-period SMA of Slow %K</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">The Full Stochastic Oscillator is a fully customizable version of the Slow Stochastic Oscillator. Users can set the look-back period, the number of periods to slow %K and the number of periods for the %D moving average. </span><br /><br /><span style="font-family: Arial,Helvetica,sans-serif;">The default parameters were used in these examples: </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Fast Stochastic Oscillator (14,3), </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Slow Stochastic Oscillator (14,3) and Full Stochastic Oscillator (14,3,3). </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Full Stochastic Oscillator: </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Full %K = Fast %K smoothed with X-period SMA</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">Full %D = X-period SMA of Full %K</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">So formula in excel sheet is </span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">after having input data like date (Column A) , open (</span><span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-family: Arial,Helvetica,sans-serif;">Column </span>B), High (</span><span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-family: Arial,Helvetica,sans-serif;">Column </span>C), Low (Column D), Close (</span><span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-family: Arial,Helvetica,sans-serif;">Column E</span>) for 14 days.</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">In </span><span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-family: Arial,Helvetica,sans-serif;">Column </span>F15 for %K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">=ROUND(((E15-MIN(E2:E15))/(MAX(E2:E15)-MIN(E2:E15)))*100,0)</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">In </span><span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-family: Arial,Helvetica,sans-serif;">Column </span>G17 for Full %K (Fast %K smoothed with X-period SMA) (3 days)</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">=ROUND(AVERAGE(F15:F17),0)</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">In </span><span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-family: Arial,Helvetica,sans-serif;">Column </span>H19 for Full %D (X-period SMA of Full %K) (3 days)</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">=ROUND(AVERAGE(G17:G19),0)</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">* Round is meant for rounding to zero decimals.</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;">In excel sheet, the indicator will look this after having typed the formulas in cell:</span></div><div class="MsoNormal"><span style="font-family: Arial,Helvetica,sans-serif;"><br /></span></div><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><span style="font-family: Arial,Helvetica,sans-serif;"><a href="http://2.bp.blogspot.com/-BR9ymJYciMQ/UkJ3LRwQcII/AAAAAAAAD8A/oo0gLMEEuJs/s1600/Stochastic+Oscillator+indicator.gif" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Stochastic Oscillator technical indicator in excel sheet, MS Excel, Stochastic Oscillator" border="0" height="241" src="http://2.bp.blogspot.com/-BR9ymJYciMQ/UkJ3LRwQcII/AAAAAAAAD8A/oo0gLMEEuJs/s400/Stochastic+Oscillator+indicator.gif" title="Stochastic Oscillator technical indicator in excel sheet" width="400" /></a></span></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-family: Arial,Helvetica,sans-serif;">Stochastic Oscillator technical indicator</span></td></tr></tbody></table></div><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><span style="font-family: Arial,Helvetica,sans-serif;"><a href="http://1.bp.blogspot.com/-SUV7gyI_YPQ/UkJ4Y2iID5I/AAAAAAAAD8M/Ru4UZkrxGYE/s1600/Stochastic+Oscillator+in+nifty+Nse+index+chart.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Stochastic Oscillator as technical indicator in Nifty chart, Nifty chart" border="0" src="http://1.bp.blogspot.com/-SUV7gyI_YPQ/UkJ4Y2iID5I/AAAAAAAAD8M/Ru4UZkrxGYE/s400/Stochastic+Oscillator+in+nifty+Nse+index+chart.png" title="Stochastic Oscillator technical indicator in Nifty chart" /></a></span></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-family: Arial,Helvetica,sans-serif;">Stochastic Oscillator technical indicator in Nifty chart</span></td></tr></tbody></table></div><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="http://4.bp.blogspot.com/-RPj7kHs-gVU/UkKYexBrfwI/AAAAAAAAD8g/iIvE09Ln4tU/s1600/Stochastic+Oscillator+nifty+excel+chart.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Stochastic Oscillator nifty chart in Ms Excel Sheet" border="0" src="http://4.bp.blogspot.com/-RPj7kHs-gVU/UkKYexBrfwI/AAAAAAAAD8g/iIvE09Ln4tU/s400/Stochastic+Oscillator+nifty+excel+chart.png" title="Stochastic Oscillator nifty excel chart" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Stochastic Oscillator nifty excel chart</td></tr></tbody></table></div>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com9tag:blogger.com,1999:blog-4894710078458809268.post-83235623757070450812013-07-30T16:03:00.001+05:302013-07-30T16:04:49.456+05:30Technical Analysis Updated content<div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" 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href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-21-pricing-of.html">Pricing of Options Contracts</a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-22-frequently.html">Frequently Asked Questions about Futures Contracts - part 1 </a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-23-frequently.html">Frequently Asked Questions about Futures Contracts - part 2 </a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-24-frequently.html">Frequently Asked Questions about Futures Contracts - part 3</a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-frequently.html">Frequently Asked Questions about Options Contracts - Part 1 </a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-26-frequently.html">Frequently Asked Questions about Options Contracts - Part 2</a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-27-frequently.html">Frequently Asked Questions about Options Contracts - Part 3</a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-28-frequently.html">Frequently Asked Questions about Options Contracts - Part 4</a><br /><a href="http://geniusjaggu.blogspot.com/2013/02/excellent-trading-school-29-frequently.html">Frequently Asked Questions about Options Contracts - Part 5 (Options Strategies) </a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /></div>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com1tag:blogger.com,1999:blog-4894710078458809268.post-63888897499258022672012-07-07T12:07:00.000+05:302012-07-07T12:11:39.081+05:30Excelsheet for Beginners Day 2 (two)<div dir="ltr" style="text-align: left;" trbidi="on"> <b>Next we will learn Creating Cell Data -Day 2</b><br /><br /><b>Making Cell Entries</b><br />Excel recognizes only two types of cell entries: text (label) and number (or value). <br /><br />Numeric cell entries are those that consist solely of numbers or calculable formulas. <br /><br />Text entries are those that consist of all letters or a combination of letters, numbers, and punctuation on which Excel can perform no sort of calculation.<br /><br />Excel Worksheet automatically left aligns all text entries and right-aligns all numeric ones, you can often tell immediately how your entry has been classified by noting how it’s aligned in its cell.<br /><br /><b>Entering data in a cell range</b><br />To make the same entry in several different cells in the same worksheet, select all the cells and cell ranges and then press Ctrl+Enter to complete the entry you make in the active cell and simultaneously insert it into all the other selected cells.<br /><br /><b>Pasting Data</b><br />The cut, copy, and paste features are used by virtually everyone who uses Excel. However, Excel offers additional advanced techniques for pasting that a great many Excel users are unaware of or rarely use, even though they allow the user to do some very powerful data manipulation.<br /><br />Using the Paste Special feature, you copy values using various options without copying formula from the cells.<br /><br /><b>Filling in a data series with the Fill handle</b><br />The tiny black square in the lower-right corner of the cell cursor is known as the Fill handle. The Fill handle is your key to the AutoFill feature that makes it easy to fill in a continuous range with the same entry or with data series.<br /><br />To create a sequential series that increments by one unit (day, hour, month, number), you enter the first entry in the series in a blank cell and then drag the Fill handle in the direction you want the series to appear (down or to the right are the most common directions).<br /><br />To create series that increment by other units (every other day, every third number, every fourth hour), you enter the first two entries in the series (that serves as an example of the increment to be used) in two adjacent blank cells and then, after selecting them both, drag the Fill handle in the appropriate<br />direction.<br /><br /><br /><b>Applying Auto Fill for a Data Series</b><br />You can quickly fill adjacent cells with data that continues a formula or a series of numbers, days, or dates, either manually from the Fill menu, or automatically by dragging the fill handle. When copying or filling data by using the Fill menu commands, you can set specific options for the pattern of the data sequence you want to create.<br /><br />Go to Edit menu > fill menu > Series option> click AutoFill (day, weekdays, months, years.)<br /><br /><b>Copying a formula with the Fill handle</b><br />AutoFill is not only useful for filling in a data series or copying a data entry into a continuous cell range, but also for copying a formula across a row or down a column of a data table. When you copy a formula, Excel automatically adjusts the column and row references.<br /><br />Excel automatically uses the relative column and row cell references in all formulas you create.<br />If you ever need to override/avoid this so that all or part of a cell reference is not adjusted in the copied formulas, you enter a $ (dollar sign) (it locks reference cell) before the cell’s column letter or row number (you can have Excel do it for you by pressing F4 while building the formula on the Formula bar).<br /><br /><br /><b>Formula</b><br />Formulas are entries that have an equation that calculates the value to display. When creating any formula, Excel always follows the mathematical(algebraic) order of operations.<br /><br />Formulas OR Functions always BEGIN with an equal sign ( = ) , in a formula, constants(numbers like 1,2,3), functions and cell reference may be used.<br /><br />when making/evaluating a formula, the order is/should as follow (from highest to lowest priority):<br />1.parenthesis ()<br />2.Negation(ex. -1)<br />3.Percentage (%)<br />4.Exponentiation (^ 'caret sign' is symbol for square,its written as 2^2)<br />5.Multiplication and Division (* for multiplication and / for division)<br />6.Addition and Subtraction (+ for addition and - for subtraction)<br /><br />Probably the most popular function in any spreadsheet is the 'SUM' function.<br />The 'Sum' function takes all of the values in each of the specified cells and totals their values to give their total value.<br />formula: <br />=SUM(first value, second value, etc) <br /><br />Formula Condition:<br />Text cells can not be added to a number and will produce an error. <br /><br />The 'Average' function finds the average of the specified data.<br />formula:<br />=Average (first value, second value, etc.)<br /><br />The 'Max' (which stand for Maximum) Function, will return the largest (Maximum / Highest) value in the selected range of cells.<br /><br />'Min' (which stands for minimum) Function will return the smallest (Minimum / Lowest) value in the selected range of cells.<br /><b>Conditions for Max-Min Functions:</b><br />Blank entries/cells are not included in the calculations of the Max/Min Function.<br />Text entries in cells are not included in the calculations of the Max/Min Function. <br /><br />The 'IF' function will check the logical condition of a statement and return one value if true and a different value if false.<br /><br /> The formula condition is: =IF (condition, value-if-true, value-if-false)<br /><br />value returned may be either a number or text,if value returned is text, it must be in quotes like this "HELLO".<br /><br />End of day 2.. to continue...</div>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com3tag:blogger.com,1999:blog-4894710078458809268.post-4189419134243928912012-07-04T16:50:00.003+05:302012-07-07T12:10:18.602+05:30Excelsheet for Beginners Day 1 (One)<div dir="ltr" style="text-align: left;" trbidi="on">MS Excel has been referred to as the world’s most popular database program because you can store vast amounts of data within a single workbook or worksheet. This MSEXCEL is meant much more than just crunching numbers.<br /><br />This was not, however, the purpose for which Excel sheet was created. By using the many functions built in to Excel, you can build formulas that perform complex data calculations.<br /><br />For millions of users the world over, Excel is also their number-one interface to the corporate database,as well as their premier charting program. Given Excel’s versatility, it should come as no surprise that mastering the basics of the program, is no small task.<br /><br /><b>Opening a New Workbook</b><br />Each time you launch MS Excel (using any method other than double-clicking an Excel workbook file icon), a new workbook containing three blank worksheets opens. You can build your new spreadsheet in this workbook, using any of its sheet pages.<br /><br />The blank workbook that opens with Excel is given a temporary filename such as Book1, Book2, and so on, that appears after the application’s name on the program window’s title bar.<br /><br />When Excel opens a blank workbook, the new workbook follows the Blank Workbook template (which controls the formatting applied to all its blank cells). You can also open new workbooks from other, specialized templates or from a workbook that you’ve already created.<br /><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="http://1.bp.blogspot.com/-w2eF02TVX5o/T_URZovoP-I/AAAAAAAADDU/jN9pUxLudAI/s1600/excelsheet.gif" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="241" src="http://1.bp.blogspot.com/-w2eF02TVX5o/T_URZovoP-I/AAAAAAAADDU/jN9pUxLudAI/s400/excelsheet.gif" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Excelsheet workbook</td></tr></tbody></table><div class="separator" style="clear: both; text-align: center;"></div><br /><b>Cell</b>: A rectangle within a workbook or worksheet, it may contain text values or formulas that return a value.<br /><br /><b>Formula</b>: A equation that performs various operations typically mathematical calculations within a worksheet.<br /><br /><b>Worksheet</b>: A 2-D page of cells (256 columns wide and 65,536 rows long) that is contained within a workbook.<br /><br /><b>Workbook</b>: A file that contains one or more worksheets.<br /><br /><br />Q. How do you create templates out of your own Excel workbook files?<br />A. Build a spreadsheet in a new or existing workbook file. To this spreadsheet add all the stock text and data, calculating formulas, and formatting required in all the files you will generate from its ensuing template and then save this file with the Office Button | Save As command.<br /><br />In the Save As dialog box, select Excel Template (*.xltx) in the Save As Type drop-down list box and edit the dummy filename (without removing the .xltx filename extension) before you click the Save button.<br /><br />To do open work/learn Excel, click Office Button New or press Ctrl+N or Alt+FN. Excel opens the New Workbook, single workbook is called as Excel Sheet, Many Excelsheet are called Excel Workbook.<br /><br /><b>To Navigate Through a Worksheet</b><br /><br /><b>To move by one cell</b><br />Press the Up Arrow key to move one cell up.<br />Press the Down Arrow key to move one cell down.<br />Press the Left Arrow key or the Tab key to move one cell to the right.<br />Press the Right Arrow key to move one cell to the left.<br /><br /><b>To move by one screen (screen resolution its 1280x800)(moving 1280x800 UP/Down fast)</b><br />Press Page Up or Page Down to move up or down.<br />Press Alt+Page Up or Alt+Page Down to move to the left or right.<br /><br /><b>To move to the edge of the current data entered region</b><br />Press Ctrl+Up Arrow to go extreme up(Starting of the data)<br />Ctrl+Down Arrow to go extreme down(end of the data)<br />Ctrl+Left Arrow, to go extreme left(Starting of the data)<br />Ctrl+Right Arrow.to go extreme right(end of the data)<br /><br /><b>To move to the extreme far end cells</b><br />Press End, and then press the Up Arrow, Down Arrow, Left Arrow, or Right Arrow key.<br /><br /><b>To move to the beginning of the current row</b><br />Press Home.<br /><br /><b>To move to the beginning of a worksheet</b><br />Press Ctrl+Home.<br /><br /><b>To move to the last populated cell on a worksheet</b><br />Press Ctrl+End.<br /><br /><b>Moving to a different sheet in the workbook</b><br /><br />The easy way to select a new worksheet is to click its sheet tab, although you can also use the shortcut keys Ctrl+PageDown to select the next sheet and Ctrl+Page Up to select the previous sheet.<br /><br /><b>Selecting Commands on the Office Menu</b><br />Press the Esc (Escape) key on your keyboard to close the Save As dialog box.<br />click Office Button, Exit Excel or press Alt+FX to close the program.<br /><br /><b>Selecting Commands from the Ribbon</b><br />If you prefer selecting Excel commands from the keyboard, you’ll probably want to<br />memorize the following access keys for selecting the seven tabs:<br />Home tab: Alt+H<br />Insert tab: Alt+N<br />Page Layout tab: Alt+P<br />Formulas tab: Alt+M<br />Data tab: Alt+A<br />Review tab: Alt+R<br />View tab: Alt+W <br /><br />End of Day 1 (One) .. to continue... </div>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com2tag:blogger.com,1999:blog-4894710078458809268.post-26253537375929351142010-12-17T12:50:00.003+05:302012-11-21T16:19:13.072+05:30New Fail-Safe Trade Indicator by jaggu<div dir="ltr" style="text-align: left;" trbidi="on">About:<br />Fail Safe indicators are made from stolid Moving Averages,which are more reliable than other lagging and leading indicators,since they follow market trend.<br /><br />this 3 step simple & easy to use indicator is proven with tried and tested in various bull and bear markets with excellent results comparable to almost positional trade fail safe by jaggu.<br /><br /><b>Features:</b><br />Name fail safe comes from fact that,this indicator has to be updated daily and manually,free from any technical problem..so there is less chance of failing/or giving wrong trend.<br /><br />this indicator is used as <b>Reliable End of Day (EOD) indicator</b>, since it depends basically on Open-High-Low-Close values.<br /><br /><b>this indicator is used for positional trade in trending market</b>,in addition with intraday trades (with separate real time file for intraday trading also available)<br /><br />How to use this Excel Sheet indicator:<br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsNrokqvhI/AAAAAAAACEg/ZPkRRg54Ags/s1600/Step+1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="235" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsNrokqvhI/AAAAAAAACEg/ZPkRRg54Ags/s400/Step+1.jpg" width="400" /> </a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsNx8SuluI/AAAAAAAACEk/GhQTZJY2x2M/s1600/Step+2+a+copy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="228" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsNx8SuluI/AAAAAAAACEk/GhQTZJY2x2M/s400/Step+2+a+copy.jpg" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsOKx5TJ9I/AAAAAAAACEo/4VEXonUNp-Q/s1600/Step%2B2%2Bb%2Bcopy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="230" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsOKx5TJ9I/AAAAAAAACEo/4VEXonUNp-Q/s400/Step%2B2%2Bb%2Bcopy.jpg" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/_rFxFyFsbzlw/TQsOUzNYW6I/AAAAAAAACEw/frZtdrEatuY/s1600/Step%2B2%2Bc%2Bcopy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="230" src="http://1.bp.blogspot.com/_rFxFyFsbzlw/TQsOUzNYW6I/AAAAAAAACEw/frZtdrEatuY/s400/Step%2B2%2Bc%2Bcopy.jpg" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://3.bp.blogspot.com/_rFxFyFsbzlw/TQsObWSAMMI/AAAAAAAACE4/m_HLKzD72_A/s1600/Step%2B2%2Bd%2Bcopy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="230" src="http://3.bp.blogspot.com/_rFxFyFsbzlw/TQsObWSAMMI/AAAAAAAACE4/m_HLKzD72_A/s400/Step%2B2%2Bd%2Bcopy.jpg" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://3.bp.blogspot.com/_rFxFyFsbzlw/TQsOjgGXDsI/AAAAAAAACFA/YPVRmdrTE7w/s1600/Step%2B2%2Be%2Bcopy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="236" src="http://3.bp.blogspot.com/_rFxFyFsbzlw/TQsOjgGXDsI/AAAAAAAACFA/YPVRmdrTE7w/s400/Step%2B2%2Be%2Bcopy.jpg" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/_rFxFyFsbzlw/TQsOtiJCFcI/AAAAAAAACFI/sNkPAEfDcUs/s1600/Step%2B2%2Bf%2Bcopy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="236" src="http://2.bp.blogspot.com/_rFxFyFsbzlw/TQsOtiJCFcI/AAAAAAAACFI/sNkPAEfDcUs/s400/Step%2B2%2Bf%2Bcopy.jpg" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsO0C8KgxI/AAAAAAAACFQ/y1QiNQzSk-g/s1600/Step%2B3.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="236" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/TQsO0C8KgxI/AAAAAAAACFQ/y1QiNQzSk-g/s400/Step%2B3.jpg" width="400" /></a></div><br /><div style="text-align: left;"><b>In this,there are 3 separate indicators:</b></div>SL = this one gives the stoploss for your long or short position,<br /><br />Day/Intraday trend= this indicator tells which is the best position for intraday trading<br /><br />Positional trend= this indicator tells u whether the market is in down trend or uptrend.<br /><br />Example Of Nifty (NSE 50) from 2008 onwards till dec 16-2010<br /><div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/_rFxFyFsbzlw/TQ7qhJ0h3EI/AAAAAAAACFg/KN1utLZJb10/s1600/2008%2Bcopy.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="http://2.bp.blogspot.com/_rFxFyFsbzlw/TQ7qhJ0h3EI/AAAAAAAACFg/KN1utLZJb10/s400/2008%2Bcopy.gif" width="129" /></a></div></div>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com2tag:blogger.com,1999:blog-4894710078458809268.post-91543593490642459662008-08-07T13:59:00.010+05:302013-09-25T11:38:46.529+05:30Step by step method to calculate TRIN in excelsheet<div style="text-align: center;">Step No.1:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_rFxFyFsbzlw/SJqyjPP-CqI/AAAAAAAABCQ/JRqOfRaQpq4/s1600-h/step+1.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://3.bp.blogspot.com/_rFxFyFsbzlw/SJqyjPP-CqI/AAAAAAAABCQ/JRqOfRaQpq4/s400/step+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5231690235602930338" border="0" /></a><br /><div style="text-align: center;">Step No.2:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_rFxFyFsbzlw/SJqysnrs3CI/AAAAAAAABCY/ytnUvC5NJII/s1600-h/step+2.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://3.bp.blogspot.com/_rFxFyFsbzlw/SJqysnrs3CI/AAAAAAAABCY/ytnUvC5NJII/s400/step+2.jpg" alt="" id="BLOGGER_PHOTO_ID_5231690396780518434" border="0" /></a><br /><div style="text-align: center;">Step No.3:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqy6gsBKtI/AAAAAAAABCg/Z-8GOp3wFcE/s1600-h/step+3.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqy6gsBKtI/AAAAAAAABCg/Z-8GOp3wFcE/s400/step+3.jpg" alt="" id="BLOGGER_PHOTO_ID_5231690635420969682" border="0" /></a><br /><div style="text-align: center;">Step No.4:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_rFxFyFsbzlw/SJqzDYJdw6I/AAAAAAAABCo/SiwPuzL628k/s1600-h/step+4.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://3.bp.blogspot.com/_rFxFyFsbzlw/SJqzDYJdw6I/AAAAAAAABCo/SiwPuzL628k/s400/step+4.jpg" alt="" id="BLOGGER_PHOTO_ID_5231690787747382178" border="0" /></a><br /><div style="text-align: center;">Step No.5:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqzN9D4RtI/AAAAAAAABCw/g4VYHFyp85I/s1600-h/step+5.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqzN9D4RtI/AAAAAAAABCw/g4VYHFyp85I/s400/step+5.jpg" alt="" id="BLOGGER_PHOTO_ID_5231690969454757586" border="0" /></a><br /><div style="text-align: center;">Step No.7:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqzca_yZgI/AAAAAAAABC4/hYYvDVP4v-0/s1600-h/step+6.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqzca_yZgI/AAAAAAAABC4/hYYvDVP4v-0/s400/step+6.jpg" alt="" id="BLOGGER_PHOTO_ID_5231691218008827394" border="0" /></a><br /><div style="text-align: center;">Step No.8:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqzl62M-VI/AAAAAAAABDA/f7MgETjttUM/s1600-h/step+7.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/SJqzl62M-VI/AAAAAAAABDA/f7MgETjttUM/s400/step+7.jpg" alt="" id="BLOGGER_PHOTO_ID_5231691381177383250" border="0" /></a><br /><div style="text-align: center;">Step No.9:<br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_rFxFyFsbzlw/SJqzyw52V9I/AAAAAAAABDI/8jdxJxbP2jQ/s1600-h/final+steps.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://2.bp.blogspot.com/_rFxFyFsbzlw/SJqzyw52V9I/AAAAAAAABDI/8jdxJxbP2jQ/s400/final+steps.jpg" alt="" id="BLOGGER_PHOTO_ID_5231691601846622162" border="0" /></a>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com2tag:blogger.com,1999:blog-4894710078458809268.post-48142639581707576302008-01-03T18:06:00.000+05:302013-09-25T11:38:46.514+05:30Using Pivot Points for TargetsWhen calculating pivot points, the pivot point itself is the primary Support/resistance.This means the largest price movement is expected to occur at this price.The other support and resistance levels are less influential, but may still generate significant price movements.<br /><br /><span style="font-weight: bold;">To Calculate Pivots in MS Excel:.</span><br /><br />Column, values to enter, formulas U have to enter<br /><br />A = Company Name/date<br />B = Open<br />C = High<br />D = Low<br />E = LTP/close<br />*Volume is not required in calculation of pivots<br /><br />F = Pivot Number = (High+Close +Low )/3 [u can also include "Open" Value also so it will be = (Open+High+Close+Low)/4],so formula is =(C2+D2+E2)/3<br /><br /><span style="font-weight: bold;">normal trading range</span><br />G= <span style="font-weight: bold;">Resistance 1</span> = 2*Pivot number-Low,so formula is <span style="font-weight: bold;">=(2*F2)-D2</span><br /><br />H= <span style="font-weight: bold;">Support 1</span> = 2*Pivot-High ,so formula is <span style="font-weight: bold;">=(2*F2)-C2</span><br /><br /><span style="font-weight: bold;">for volatile trading range: </span><br />I= <span style="font-weight: bold;">Resistance 2</span> = Pivot+(Resistance1-Support1),so formula is <span style="font-weight: bold;">=F2+(G2-H2)</span><br /><br />J= <span style="font-weight: bold;">Support 2</span> = Pivot-(Resistance1-Support1),so formula is <span style="font-weight: bold;">=F2-(G2-H2)</span><br /><br /><span style="font-weight: bold;">for extreme trading range:</span><br />K= <span style="font-weight: bold;">Resistance 3 </span>= High+2*(Pivot-Low),so formula is <span style="font-weight: bold;">=C2+2*(F2-D2)</span><br /><br />L= <span style="font-weight: bold;">Support 3</span> = Low-2*(High-Pivot),so formula is <span style="font-weight: bold;">=D2-2*(C2-F2)</span><br /><br /><span style="font-weight: bold;">Target for next trading day</span><br />M= <span style="font-weight: bold;">Resistance 2</span>,so formula <span style="font-weight: bold;">= I1</span> (previous days Resistance2)<br /><br /><span style="font-weight: bold;">Support for next trading day</span><br />O=<span style="font-weight: bold;"> Support 1</span>,so formula <span style="font-weight: bold;">= J1</span> (previous days Support1)<br /><br /><span style="font-weight: bold;">Tips to use in Intraday-Trade:<br />for bulls:</span><br />if a stock goes above R1 then he can buy above the R1 with stoploss at S1<br />if a stock falls below S1 (and finds support there),then he can buy above the S1 with stoploss at S2<br /><br /><span style="font-weight: bold;">for bears:</span><br />if a stock falls below S1 then he can Short sell with stoploss at R1<br />if a stock goes above R1 (and finds Resistance there),then he can Short sell with stoploss at R2<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_rFxFyFsbzlw/R3zYMwKxEEI/AAAAAAAAAcU/0gzrw5bXQSA/s1600-h/pivots.gif"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://3.bp.blogspot.com/_rFxFyFsbzlw/R3zYMwKxEEI/AAAAAAAAAcU/0gzrw5bXQSA/s400/pivots.gif" alt="" id="BLOGGER_PHOTO_ID_5151229787405094978" border="0" /></a><br /><span style="font-weight: bold;">Important</span><br />Pivot points enables trader to quickly calculate levels that are likely to cause price movement. Pivot points are short-term trend indicators, useful for one day only,then they need to be recalculated.The success of a pivot-point system, lies only with the trader,with his/her ability to effectively use the pivot-point systems with other forms of technical analysis.Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com12tag:blogger.com,1999:blog-4894710078458809268.post-56416508449099350192007-12-08T12:26:00.001+05:302013-09-25T11:38:46.518+05:30Simple and Exponential Moving AverageMoving averages are lagging indicators,will give always late signals.<br />By weighing recent price data more heavily, exponential moving averages speed up the signal.<br /><br />No matter which average you use,Simple and exponential moving averages will give similar signal. So,its best for you to choose whichever type of average you are most comfortable with it.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://1.bp.blogspot.com/_rFxFyFsbzlw/R1o8w0_9LDI/AAAAAAAAAS0/JxfKXOSiQdo/s1600-h/moving+average.gif"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://1.bp.blogspot.com/_rFxFyFsbzlw/R1o8w0_9LDI/AAAAAAAAAS0/JxfKXOSiQdo/s400/moving+average.gif" alt="" id="BLOGGER_PHOTO_ID_5141488734155123762" border="0" /></a><br /><span style="font-weight: bold;">important :</span><br />1.An upward moving average is more bullish than that is moving sideways.<br />A downward moving average is more bearish than that is moving sideways.<br /><br />2.Its bullish,when the price is above an upward moving average.<br />its bearish,when price is below a downward moving average.<br /><br />3.If you are using more than one moving average on a chart, then it is bullish if the shorter moving average is above the longer one and the share price is above both moving averages. It is bearish when share price is below moving averages.<br /><br />4.A 4-day moving average with a 9-day will be very similar to a 5-day with a 10-day.<br /><br />5. to analyze the chart in the short,medium and Long term,Moving Averages should be 5 and 10-day for short term,30 and 50-day for medium,100,200-day for long term.Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com0tag:blogger.com,1999:blog-4894710078458809268.post-19534693759153596172007-12-02T17:42:00.000+05:302013-09-25T11:38:46.493+05:30Money Flow IndexMoney Flow Index or Smart Money Flow Index<br />The purpose of using MFI is to detect accumulation and distribution.<br /><br />MFI is a more rigid indicator because it is volume-weighted, and is therefore a good measure of the strength of money flowing in and out of a security.<br /><br />It compares "positive money flow" to "negative money flow" to create an indicator that can be compared to price in order to identify the strength or weakness of a trend. Like the RSI, the MFI is measured on a 0 - 100 scale and is often calculated using a 14 day period.<br /><br />The extreme readings do not always result in major tops and bottoms.<br /><br />Formula<br />Typical Price = ( (Day High + Day Low + Day Close) / 3)<br />Money Flow = (Typical Price) x (Volume)<br /><br />The MFI compares the ratio of "positive" money flow and "negative" money flow. If typical price today is greater than yesterday, it is considered positive money. For a 14-day average, the sum of all positive money for those 14 days is the positive money flow. The MFI is based on the ratio of positive/negative money flow (Money Ratio).<br /><br />Money Ratio = (Positive Money Flow / Negative Money Flow)<br />Money Flow Index = 100 - (100 / (1 + Money Ratio))<br /><br />To Calculate Money Flow Index in MS Excel:.<br /><br />Column values to enter formulas U have to enter<br /><br />A = Company Name/date<br />B = Open<br />C = High<br />D = Low<br />E = LTP/close<br />F = Volumes<br /><br />G = Typical Price = (Day High + Day Low + Day Close)/3 So formula =(C2+D2+E2)/3<br />H = Money Flow = (Typical Price) x (Volume) So formula =G2*F2<br />I = Positive Money Flow,So formula =IF(G2 greater than G1,H2,0)<br />J = Negative money flow,So formula =IF(G2 less than G1,H2,0)<br />K = Average Positive Money Flow(14days) So formula =SUM(I2:I15)<br />L = Average Negative Money Flow(14days) So formula =SUM(J2:J15)<br />M = Money Ratio = (Po.Money Flow/Neg.Money Flow) So formula =K15/L15<br />N = Money Flow Index = 100 - (100 / (1 + Money Ratio)) So formula =100-(100/(1+M15))<br /><br />Pls note: replace "greater than" with symbol ">" and"less than" with symbol "<".if used any where. <a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_rFxFyFsbzlw/R1KhAE_9KqI/AAAAAAAAAN0/GXzcs01FzNc/s1600-R/MFI.gif"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://2.bp.blogspot.com/_rFxFyFsbzlw/R1KhAE_9KqI/AAAAAAAAAN0/YeJt_hgmTVM/s400/MFI.gif" alt="" id="BLOGGER_PHOTO_ID_5139347147497220770" border="0" /></a>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com14tag:blogger.com,1999:blog-4894710078458809268.post-29349512092248303812007-11-26T17:41:00.000+05:302013-09-25T11:38:46.505+05:30Average Directional Index (ADX):Meaning & Calculation<span style="font-weight: bold;">Introduction</span><br />J. Welles Wilder developed the Average Directional Index (ADX) to evaluate the strength of a current trend, be it up or down.<br /><br />It's important to determine whether the market is trending or trading (moving sideways), because certain indicators give more useful results depending on the market doing one or the other.<br /><br />The ADX is an oscillator that fluctuates between 0 and 100. Even though the scale is from 0 to 100, readings above 60 are relatively rare. Low readings, below 20, indicate a weak trend and high readings, above 40, indicate a strong trend.<br /><br />The indicator does not grade the trend as bullish or bearish, but merely assesses the strength of the current trend. A reading above 40 can indicate a strong downtrend as well as a strong uptrend.<br /><br />ADX can also be used to identify potential changes in a market from trending to non-trending. When ADX begins to strengthen from below 20 and moves above 20, it is a sign that the trading range is ending and a trend is developing.<br /><br />When ADX begins to weaken from above 40 and moves below 40, it is a sign that the current trend is losing strength and a trading range could develop.<br /><br /><span style="font-weight: bold;">Positive/Negative Directional Indicators</span><br />The ADX is derived from two other indicators, also developed by Wilder, called the Positive Directional Indicator (sometimes written +DI) and the Negative Directional Indicator (-DI).<br /><br />In its most basic form, buy and sell signals can be generated by +DI/-DI crosses.<br /><br />A buy signal occurs when +DI moves above -DI and a sell signal when -DI moves above the +DI.<br />As with most technical indicators, +DI/-DI crosses should be used in conjunction with other aspects of technical analysis.<br /><br />The ADX combines +DI with -DI, and then smooths the data with a moving average to provide a measurement of trend strength. Because it uses both +DI and -DI, ADX does not offer any indication of trend direction, just strength.<br /><br />The Directional Movement Index, DMI, is an effective and frequently used trend indicator. This system was designed by Welles Wilder Jr. and is made up of three lines:<br />1. The +DI indicates the up average.<br />2. The -DI indicates the down average.<br />3. The ADX, average directional movement index, shows whether a trend is in effect by smoothing the difference between the +DI and -DI.<br /><br />The time periods most commonly used in the complex formula are 10 or 14 days.<br /><br />According to Wilder the DMI should be used with the ADX as a filter.<br />A rising ADX line means the market is trending and a better candidate for a trend-following system.<br /><br />A falling ADX line indicates a non-trending market.<br /><br />Some traders also look for an ADX greater than 20 or 25 to confirm that the market is trending. When the ADX line starts to drop from above the 40 level, that is an early sign that the trend is weakening. A rise back above 20 is often a sign of the start of a new trend.<br /><br /><span style="font-weight: bold;">Signals</span><br />Generally speaking, the two main buy and sell signals generated by DMI are as follows:<br />* A buy signal is given when +DI crosses above the -DI line.<br /> * A sell signal is given when +DI crosses below the -DI line.<br /><br />An ADX below 25 is a strong warning to avoid trading.<br /><br /><span style="font-weight: bold;">Calculation for Average Directional Index</span><br />TR := SUM(MAX(MAX(HIGH-LOW,ABS(HIGH-REF(CLOSE,1))),ABS(LOW-REF(CLOSE,1))),N);<br />HD := HIGH-REF(HIGH,1);<br />LD := REF(LOW,1)-LOW;<br />DMP:= SUM(IF(HD>0 & HD>LD,HD,0),N);<br />DMM:= SUM(IF(LD>0 & LD>HD,LD,0),N);<br />PDI:= DMP*100/TR;<br />MDI:= DMM*100/TR;<br />ADX:= MA(ABS(MDI-PDI)/(MDI+PDI)*100,N)<br /><br /><span style="font-weight: bold;">so Calculation for ADX in MS Excel:</span><br />A = Company Name/date<br />B = Open<br />C = High<br />D = Low<br />E = close<br />F = Volumes<br /><br />1. Calculate DM+/-:<br />a.If YH > = TH, and YL < = TL (i.e. if today's trading is totally within yesterday's range), then DM+ = 0;DM- = 0<br />so formula for (a)= IF(AND(C1>=C2,D1<=D2), "0",0)<br /><br />b.If TH - YH = YL - TL (i.e. if the differences between highs and lows are the same), then DM+ = 0;DM- = 0<br />so formula for (b)= IF(AND(C2-C1=D2-D1),"0",0)<br /><br />c.If TH - YH > YL - TL ( i.e. if the differences between highs and lows are the same), then DM+ = TH - YH;DM- = 0<br />so formula for (c)=IF(C2-C1>D2-D1), C2-C1, D2-D1)<br /><br />d.Otherwise (i.e. the difference between lows is more than the difference between highs), DM+ = 0;DM- = YL - TL<br /><br />Derived DM+/- formula in G2 is =IF(AND(C1>=C2,D1<=D2),0,IF(AND(C2-C1=D2-D1),0,IF(AND(C2-C1>D2-D1),C2-C1,D2-D1)))<br /><br />for True range in cell H2 =MAXA(C2-D2,C2-E1,E1-C2,E1-D2,D2-E1)<br /><br />for Plus DM in cell i2 =IF(G2>0,G2,0)<br />for minus DM in cell J2 =IF(G2<0,ABS(G2),0)<br /><br />for PLUSDI in cell K2 =(I2*100)/H2<br />for MINUSDI in cell L2 =(J2*100)/H2 <br /><br />then Average 14day Plus DI,so in cell M14 =SUM(K2:K14)/13 (13 day sma)<br />in cell M15(14day EMA) =K15*0.133+M14*(1-0.133)<br /><br />then Average 14day Minus DI,so in cell N14 =SUM(L2:L14)/13 (13 day sma)<br /> in cell N15(14day EMA) =L15* 0.133+N14*(1-0.133) <br /><br />Then DX in cell O14 =(M14-N14)/(M14+N14)*100<br />13day ADX in cell P27 =SUM(O14:O27)/13<br /><br />Then (14)ADX in cell P28 =O28*0.133+P27*(1-0.133) <br /><br /><br />Pls note: replace "greater than" with symbol ">" and"less than" with symbol "<".if used any where. <a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_rFxFyFsbzlw/R0q3vNw3xaI/AAAAAAAAAMw/FI2OVZEvmVs/s1600-h/adx+copy.gif"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/R0q3vNw3xaI/AAAAAAAAAMw/FI2OVZEvmVs/s400/adx+copy.gif" alt="" id="BLOGGER_PHOTO_ID_5137120346745849250" border="0" /></a><br /><br />since i am not a expert in excel programming,i would like to know,whether my Derived DM+/- formula in G2 is correct or not.Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com6tag:blogger.com,1999:blog-4894710078458809268.post-41195266339869690262007-11-25T17:35:00.000+05:302013-09-25T11:38:46.508+05:30Bollinger Bands<span style="font-weight: bold;"></span>Bollinger Bands are a technical trading tool created by John Bollinger in the early 1980s.<br /><br />The purpose of Bollinger Bands is to provide a relative definition of high and low.<br />Bollinger Bands consist of a set of three curves drawn in relation to securities prices.<br /><br />The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands.<br /><br />The interval between the upper and lower bands and the middle band is determined by volatility,typically the standard deviation of the same data that are used for the average.<br /><br />The default parameters,are 20day (periods) and two standard deviations:<br /><br />Middle Bollinger Band = 20-Day simple moving average<br />Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation<br />Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation<br /><br />the interpretation of the Bollinger Bands is based on the fact that the prices tend to remain in between the top and the bottom line of the bands.<br /><br />A distinctive feature of the Bollinger Band indicator is its variable width due to the volatility of prices.<br /><br />In periods of considerable price changes (i.e. of high volatility) the bands widen leaving a lot of room to the prices to move in. During standstill periods, or the periods of low volatility the band contracts keeping the prices within their limits.<br /><br /><span style="font-weight: bold;">Calculation</span><br />Bollinger bands are formed by three lines. The middle line (ML) is a usual Moving Average.<br />ML = SUM[CLOSE, N]/N<br /><br />The top line, TL, is the same as the middle line a certain number of standard deviations (D) higher than the ML.<br />TL = ML+(D*StdDev)<br /><br />The bottom line (BL) is the middle line shifted down by the same number of standard deviations.<br />BL = ML-(D*StdDev)<br /><br />Where:<br />N is the number of periods used in calculation;<br />SMA = Simple Moving Average;<br />StdDev = means Standard Deviation.<br />StdDev = SQRT(SUM[(CLOSE-SMA(CLOSE,N))^2,N]/N)<br /><br />It is recommended to use 20-period Simple Moving Average as the middle line, and plot top and bottom lines two standard deviations away from it.<br /><br /><span style="font-weight: bold;">To Calculate Bollinger Bands in MS Excel:.</span><br />Column,values to enter, formulas U have to enter<br />A = Company Name/date<br />B = Open<br />C = High<br />D = Low<br />E = LTP/close<br />F = Volumes<br /><br /><span style="font-weight: bold;">first we have to calculate a 20-day standard deviation:</span><br /><br />G = here, we have to calculate mean (or Simple Mov. Aver.) of 20 days, we add all 20 days clsoing prices and divide it by 20.i.e no.of periods we require.so in cell G21(20th day) u have to enter formula,it is =SUM(E2:E22)/20<br /><br />then,we have to manually copy the mean (ie.Simple Mov. Aver.) of 20 days above the G21.till we complete 20 days.ie. G21+19 cells above it.<br /><br />H = then,we have to calculate deviation for these 20 day period so subract SMA from closing price we get deviation =E2-G2<br /><br />I = then have to square the deviation so =POWER(H2,2)<br /><span class="search_hit"></span><span class="search_hit"></span><br />J = <span style="font-weight: bold;" class="search_hit">standard</span><span style="font-weight: bold;"> </span><span class="search_hit"><span style="font-weight: bold;">deviation</span> = </span>then,we divide the sum of the squared deviation by the number of days so formula is =SQRT(SUM(I2:I21)/20)<br /><br /><span style="font-weight: bold;">Bollinger bands are formed by three lines. </span><br />G = Middle band<br /><br />K = Upper band (SMA plus 2 standard deviations) =G21+(2*J21)<br /><br />L = Lower band (SMA minus 2 standard deviations) =G21-(2*J21)<br /><br /><span style="font-weight: bold;">Conclusions</span><br />Even though Bollinger Bands can help generate buy and sell signals, they are not designed to determine the future direction of a security.<br /><br />Bollinger Bands serve two primary functions:<br />-To identify periods of high and low volatility<br />-To identify periods when prices are at extreme, and possibly unsustainable, levels.<br /><br />Remember that buy and sell signals are not given when prices reach the upper or lower bands. Such levels merely indicate that prices are high or low on a relative basis.<br /><br />A security can become overbought or oversold for an extended period of time.<br /><br />Finally,the bands are just bands,not signals.A band of the upper Bollinger Band is NOT a sell signal. A bands of the lower Bollinger Band is NOT a buy signal.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_rFxFyFsbzlw/Rz8Wc9w3xRI/AAAAAAAAALg/0i1UaQCXD9s/s1600-h/Bollinger+band+copy.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/Rz8Wc9w3xRI/AAAAAAAAALg/0i1UaQCXD9s/s320/Bollinger+band+copy.jpg" alt="" id="BLOGGER_PHOTO_ID_5133846787097347346" border="0" /></a><br /><div style="text-align: center;"><img src="http://www.icharts.in/ShowChart.php?symbol=NIFTY&period=Daily&log_chart=&color_bars=1&chart_theme=CHART_THEME_CREAM&chart_size=400%20X%20200&chart_type=OHLC&uind1=BB&uind1_param=20,2" /></div>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com13tag:blogger.com,1999:blog-4894710078458809268.post-21846155437983803432007-11-25T17:29:00.002+05:302013-09-25T11:38:46.502+05:30Relative Strength Index (RSI):Meaning &Calculation<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_rFxFyFsbzlw/SpaYkPoFytI/AAAAAAAABlo/YuUpHMfuJ0Q/s1600-h/RSI.gif"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 282px;" src="http://2.bp.blogspot.com/_rFxFyFsbzlw/SpaYkPoFytI/AAAAAAAABlo/YuUpHMfuJ0Q/s400/RSI.gif" border="0" alt="" id="BLOGGER_PHOTO_ID_5374650953750661842" /></a><br /><div><br /></div><div><br /></div>Introduction<br />Developed by J. Welles Wilder and introduced in his 1978 book, <span style="font-style: italic;">New Concepts in Technical Trading Systems</span>, the Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator.<br /><br />The RSI compares the magnitude of a stock's recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. Like most indicators, the RSI only needs one stock to be computed.<br /><br /><span style="font-weight: bold;">Calculation</span><br />n = number of days<br />Average gain = (total gains/n)/(total losses/n)<br />For First RS = (Aver.Gain/Aver Loss)<br />RSI=100-(100/1+RS)<br /><br /><span style="font-weight: bold;">Interpretation</span><br />Overbought/Oversold<br />If the RSI rises above 30 it is considered bullish for the underlying stock.<br />If the RSI falls below 70, it is a bearish signal.<br /><br /><span style="font-weight: bold;">Trading Signals & Divergences</span><br />Buy and sell signals can also be generated by looking for positive and negative divergences between the RSI and the underlying stock.<br /><br /><span style="font-weight: bold;">Positive divergence</span><br />Buy when price and the Relative Strength Index are both rising.<br />Sell when the price and the RSI are both falling.<br /><br /><span style="font-weight: bold;">Negative divergence</span><br />Buy when price falls and but RSI does not fall instead goes up.<br />Sell when the price goes up and but RSI does not go up instead falls by good margin<br /><br />The underlying stock will often reverse its direction soon after such a divergence.<br /><br /><span style="font-weight: bold;">To Calculate Formula in Excel For RSI</span><br />Column,Description, = Formula To Enter,Cell No. to Enter<br />A=Date<br />B=Open/Previous Close<br />C=High<br />D=Low<br />E=Close<br />F=Volumes<br /><br />To compute Gain/Loss:<br />G = % Change, =E3-E2, In G3 & AutoFill (Copy)( Press Shift +D on Kybrd)<br /><br />To compute Gain only:<br />H= Advance, =IF(G3>0,G3,0) ,In H3 & AutoFill (Copy)( Press Shift +D on Kybrd)<br /><br />To compute Loss only:<br />I= Decline, =IF(G3<0,G3,0) ,In I3 & AutoFill (Copy)( Press Shift +D on Kybrd)<br /><br />To compute Average Gain:<br />J=Average Losses,=AVERAGE(H3:H16),In J16 & AutoFill (Copy)( Press Shift +D on Kybrd)<br /><br />To compute Average Loss:<br />K=Average Losses,=AVERAGE(I3:I16),In K16 & AutoFill (Copy)( Press Shift +D on Kybrd)<br /><br />L=For First RS,= (Aver.Gain/Aver Loss)<br />L=RS,=ABS(J16/K16),In L16 & AutoFill (Copy)( Press Shift +D on Kybrd)<br /><br />M=RSI(14 day),=100-(100/1+RS)<br />M=RSI,=IF(K16=0,100,100-(100/(1+L16))),In M16 & AutoFill (Copy)( Press Shift +D on Kybrd)Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com5tag:blogger.com,1999:blog-4894710078458809268.post-42453286309293718302007-11-25T17:15:00.002+05:302013-09-25T11:38:46.511+05:30MACD:Meaning &Calculation<span style="font-weight: bold;">Moving Average Convergence/Divergence (MACD)</span><br /><br /><span style="font-weight: bold;">Introduction</span><br />Developed by Gerald Appel, Moving Average Convergence/Divergence (MACD) is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics.<br /><br />These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The resulting plot forms a line that oscillates above and below zero, without any upper or lower limits.<br /><br /><span style="font-weight: bold;">MACD Formula</span><br />The most popular formula for the MACD is the difference between a security's 26-day and 12-day Exponential Moving Averages(EMAs).<br /><br />Of the two moving averages that make up MACD, the 12-day EMA is the faster and the 26-day EMA is the slower. Closing prices are used to form the moving averages. Usually, a 9-day EMA of MACD is plotted along side to act as a trigger line. A bullish crossover occurs when MACD moves above its 9-day EMA, and a bearish crossover occurs when MACD moves below its 9-day EMA.<br /><br />The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA.<br /><br /><span style="font-weight: bold;">Interpretation</span><br />MACD is a trend following indicator, and is designed to identify trend changes. It's generally not recommended for use in ranging market conditions. Three types of trading signals are generated,<br />* MACD line crossing the signal line.<br />* MACD line crossing zero<br />* Divergence between price and MACD levels<br /><br />The signal line crossing is the usual trading rule. This is to buy when the MACD crosses up through the signal line, or sell when it crosses down through the signal line.<br /><br />When the MACD line crosses through zero on the histogram it is said that the MACD line has crossed the signal line.<br />The histogram can also help visualizing when the two lines are coming together.<br /><br />A crossing of the MACD line up through zero is interpreted as bullish, or down through zero as bearish.<br /><br />Positive divergence between MACD and price arises when price makes a new selloff low, but the MACD doesn't make a new low(i.e. it remains above where it fell to on that previous price low). This is bullish, suggesting the downtrend may be nearly over.<br /><br />Negative divergence is when price makes a new rally high, but MACD doesn't rise as high as before, this is bearish.<br /><br /><span style="font-weight: bold;">Trading Signals</span><br />First check whether price is trending. If MACD is flat or stays close to the zero line, the market is ranging and signals are unreliable.<br />Go long when the MACD line crosses the signal line from below.<br />Go short when the MACD line crosses the signal line from above.<br /><br />Signals are far stronger if there is either:<br />a divergence on the MACD line; or<br />a large swing above or below the zero line.<br /><br /><span style="font-weight: bold;">To Calculate MACD in MS Excel:.</span><br /><br />Column | Description | Formula to enter<br /><br />A = Company Name/date<br />B = Open<br />C = High<br />D = Low<br />E = LTP/close<br />F = Volumes<br /><br />G (12DAY EMA) = first we have to calculate 12-Day Ema:<br />For 12 day Ema,we have to calculate 11-day Simple mov.aver(SMA).<br />Formula= Sum(E2:E12)/11 , enter formula in G12<br /><br />In 13 row of G column we have to calculate ema<br /><br />EMA formula = price today * k + EMA yesterday's * (1-k) where N is number of days in your ema<br /><br />OR<br /><br />X(EMA) = (K x (C - P)) + P<br /><br />X = Current EMA,<br />C = Current Price,<br />P = Previous period's EMA*,<br />K = Smoothing constant<br />(*A SMA is used for first period's calculation),K = 2/(1+N),N = Number of periods for EMA<br /><br />calculation<br />K = 2/(1+N)<br />12day=2/(12+1)=0.15<br />26day=2/(26+1)=0.074<br /><br />so formula for 12day ema would be =E13*0.15+G12*(1-0.15) OR (0.15*(E13-G12))+G12, enter formula in G13, copy the formula till latest closing price.<br /><br />H (26DAY EMA) = now we have to calculate 26 day ema,so u have to go thru the Mov.Aver.formula steps once again:<br />we have to calculate 25-day Simple mov.aver(SMA).Formula= =Sum(E2:E26)/25 enter formula in H26<br /><br />so formula for 26day ema would be =E27*0.074+H26*(1-0.074) OR (0.074*(E27-H27))+H27,enter formula in H27,copy the formula till latest closing price.<br /><br />I (MACD[FAST LINE])= Subtract 26-day ema from 12-day ema.so formula =H27-G27, enter in I27,copy the formula till latest closing price.<br /><br />J (9-day ema[Slow Line]) = first we have to calculate 9-Day Ema of MACD(trigger/signal line)<br />calculate 8-day Simple mov.aver(SMA).Formula =SUM(I27:I34)/8,enter the formula in J34<br />then,Ema kicks in<br />K = 2/(1+N), so 2/(9+1)=0.2<br />=I35*0.2+J34*(1-0.2),enter the formula in J35,copy the formula till latest closing price.<br /><br />K (MACD Histogram)= we have subtract Slow line(J34)from Fast line(I34) so formula =J34-I34,enter in K34,copy the formula till latest closing price.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_rFxFyFsbzlw/Rz5bj9w3xPI/AAAAAAAAALU/ui5FiLa-ejo/s1600-h/macd+copy.gif"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://3.bp.blogspot.com/_rFxFyFsbzlw/Rz5bj9w3xPI/AAAAAAAAALU/ui5FiLa-ejo/s320/macd+copy.gif" alt="" id="BLOGGER_PHOTO_ID_5133641298682037490" border="0" /></a><br /><br /><img src="http://www.icharts.in/ShowChart.php?symbol=NIFTY&period=Daily&log_chart=&color_bars=1&chart_theme=CHART_THEME_CREAM&chart_size=400%20X%20200&chart_type=CANDLES&uind1=EMA&uind1_param=Close,20&uind2=EMA&uind2_param=Close,50&uind3=None&uind3_param=&lind1=MACD&lind1_param=12,26,9" />Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com62tag:blogger.com,1999:blog-4894710078458809268.post-7330088935272735782007-11-25T17:09:00.000+05:302013-09-25T11:38:46.526+05:30Moving Averages:Meaning &Calculation<span style="font-weight: bold;">Moving Averages</span><br /><br />Moving averages are one of the most popular and easy to use tools available to the technical analyst.A moving average series can be calculated for any time/data series.<br /><br />In finance, it is most often applied to stock prices, returns or trading volumes. Moving averages are used to smooth out short-term fluctuations, thus highlighting longer-term trends or cycles.<br /><br />Moving averages work best when a security is trending and are ineffective when a security moves in a trading range.<br /><br />The two most popular types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).<br /><br /><span style="font-weight: bold;"><u>Simple Moving Average (SMA)</u></span><br />A simple moving average is formed by computing the average (mean) price of a security over a specified number of periods.<br /><br />The formula for a 10-day simple moving average of closing price is:<br />SMA = pM + pM-1 +pM-2 + ...+ pM-9/ 10<br /><br />All moving averages are lagging indicators and will always be "behind" the price.<br /><br />When prices are trending, moving averages work well. However, when prices are not trending, moving averages can give misleading signals.<br /><br />If the price were rising, the SMA should be below the closing price to be considered bullish.<br /><br /><span style="font-weight: bold;"><u>Exponential Moving Average (EMA)</u></span><br />In order to reduce the lag in simple moving averages, technicians often use exponential moving averages (also called exponentially weighted moving averages).<br /><br />EMA's reduce the lag by applying more weight to recent prices relative to older prices. The weighting applied to the mostrecent price depends on the specified period of the moving average.<br /><br />The shorter the EMA's period, the more weight that will be applied to the most recent price.<br /><br />The formula for an exponential moving average is:<br />EMA = price today * k + Ema(previous)* (1-k) <br />OR <br />X(EMA) = (K x (C - P)) + P<br /><br />The simple moving average obviously has a lag, but the exponential moving average may be prone to quicker breaks.<br /><br />Some investors prefer simple moving averages over long time periods to identify long-term trend changes.<br /><br />Some traders prefer to use exponential moving averages for shorter time periods to capture changes quicker.<br /><br />Simple moving averages work well for longer-term situations that do not require a lot of sensitivity.<br />Exponential moving averages are usually best for short-term situations that require a responsive moving average.<br /><br />To calculate EMA,we have to first calculate the simple average...thats why i have to calculate SMA before EMA.<br /><br />If you want a 10-day EMA,u have to calculate Simple Mov.Aver. for first 9 days i.e add up all closing prices and divide by 9.<br /><br />From the 10th day the formula for EMA starts in..<br /><br />EMA = price today * k + EMA yesterday's * (1-k)<br />K = 2/N+1<br />where N is number of periods/days in your ema<br /><br />OR<br />X(EMA) = (K x (C - P)) + P<br />X = Current EMA<br />C = Current Price<br />P = Previous period's EMA*<br />K = Smoothing constant<br />(*A SMA is used for first period's calculation)<br />K = 2/(1+N)<br />N = Number of periods/Days in your EMA<br /><br />The result will the same,but i prefer the first one.<br /><br />K = 2/(1+N)<br />5 EMA =2/5+1=0.33<br />10 EMA =2/10+1=0.18<br />25 EMA =2/25+1=0.076<br />50 EMA =2/50+1=0.039<br />100 EMA =2/100+1=0.0198<br />200 EMA =2/200+1=0.00995<br /><br />so for EMA formula would be like this:<br />5 EMA =E6*0.33+G5*(1-0.33)<br />10 EMA =AB25*0.18+AC24*(1-0.18)<br />25 EMA =E26*0.076+I25*(1-0.076)<br />50 EMA =E51*0.039+K50*(1-0.039)<br />100 EMA =E101*0.0198+M100*(1-0.0198)<br />200 EMA =E201*0.00995+O200*(1-0.00995)<br /><br />for eg for 50 day EMA is<br />EMA = price today * k + EMA yesterday's * (1-k) =E51*0.039+L50*(1-0.039) = 894.6377071<br />OR<br />X(EMA) = (K x (C - P)) + P =0.039*(E51-L50)+L50 =894.6377071<br /><br /><span style="font-weight: bold;">To Calculate Moving Average in MS Excel:.</span><br />Column | Description | Formula to enter<br />A = Company Name/date<br />B = Open<br />C = High<br />D = Low<br />E = LTP/close<br />F = Volumes<br /><br />G = 5SMA =SUM(E2:E6)/5 ,enter in row cell 6 ,copy formula till last price<br />H = 5EMA =SUM(E2:E5)/4 , enter in row cell 5, =E6*0.33+H5*(1-0.33) ,enter in row cell 6, copy this formula till last price.<br /><br />I = 25SMA =SUM(E2:E26)/25 ,enter in row cell 26, copy formula till last price<br />J = 25EMA =SUM(E2:E25)/24, enter in row cell 25, =E26*0.076+J25*(1-0.076) , enter in row cell 26, copy this formula till last price.<br /><br />K = 50SMA =SUM(E2:E51)/50, enter in row cell 51, copy formula till last price<br />L = 50EMA =SUM(E2:E50)/49, enter in row cell 50 =E51*0.039+L50*(1-0.039) enter in row cell 51, copy this formula till last price<br /><br />M = 100SMA =SUM(E2:E101)/100, enter in row cell 101, copy formula till last price<br />N = 100EMA =SUM(E2:E100)/99, enter in row cell100, =E101*0.0198+N100*(1-0.0198) enter in row cell 101, copy this formula till last price<br /><br />O = 200SMA =SUM(E2:E201)/200,enter in row cell 201,copy formula till last price<br />P = 200EMA =SUM(E2:E200)/199,enter in row cell200,=E201*0.00995+P200*(1-0.00995), enter in row cell 201,copy this formula till last priceRajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com1tag:blogger.com,1999:blog-4894710078458809268.post-59687059612735237942007-11-25T16:55:00.000+05:302013-09-25T11:38:46.523+05:30Trin:Intepretation & Calculation<span style="font-weight: bold;">TRIN</span><br />Is short form for <span style="font-weight: bold;">TRaders INdex</span>. A technical analysis indicator calculated by taking the advances-to-declines spread and dividing that by the volume of advances to declines.<br /><br /><span style="font-weight: bold;">Founder of the TRIN </span><br />Richard W Arms, Jr., is a financial consultant to institutional investors and a private portfolio manager based in Albuquerque, New Mexico.<br /><br />He is a noted expert in the field of technical and market analysis, the 1995 winner of the prestigious Market Technicians Award and the author of several best selling books and articles on his ground breaking theories in volume analysis and market forecasting.<br /><br />This key technical tool for understanding market price movement is listed daily in the Wall Street Journal and is flashed once a minute on CNBC.<br /><br />Richard Arms' revolutionary theories have changed the way investors perceive the market. His expertise in the field of technical analysis has had significant impact, evidence of this fact is his Equivolume charting system is now part of the most popular stock and futures software, and his <span style="font-weight: bold;">Arms Index - also known as the Short-Term Trading Index or TRIN - has become one of the most important technical tools o</span><span style="font-weight: bold;">f Wall Street. </span><br /><br /><span style="font-weight: bold;">Description</span><br />The Arms Index is primarily a short-term trading tool. The Index shows whether volume is flowing into advancing or declining stocks. If more volume is associated with advancing stocks than declining stocks, the Arms Index will be less than 1.0; if more volume is associated with declining stocks, the Index will be greater than 1.0.<br /><br />The Index is usually smoothed with a moving average.A 4-day moving average is used for short-term analysis, a 21-day moving average for intermediate-term, and a 55-day moving average for longer-term analysis.<br /><br />Normally, the Arms Index is considered bullish when it is below 1.0 and bearish when it is above 1.0. However, the Index seems to work most effectively as an overbought/oversold indicator.<br /><br />When the indicator drops to extremely overbought levels, it is foretelling a selling opportunity. When it rises to extremely oversold levels, a buying opportunity is approaching.<br /><br />What constitutes an "extremely" overbought or oversold level depends on the length of the moving average used to smooth the indicator and on market conditions.<br /><br />Strictly defined, TRIN measures the ratio of advancing stocks to declining stocks and compares it to the ratio of advancing volume to declining volume.<br /><br />When advancing volume exhibits discordance with the raw number of advancing stocks, the all-important signal is given. Conversely, when volume on the downside increases out of proportion with the number of declining stocks, an upside reversal is said to be imminent.<br /><br /><span style="font-weight: bold;">Interpreting TRIN </span><br />In a neutral market, TRIN will exhibit values within the range of 0.75 to 0.85, and its value typically remains below 1.0, which means the volume of advancing stocks exceeds the volume of declining stocks. This is considered typical because market participants are normally more bullish than bearish.<br /><br />A high TRIN shows that bears are overoptimistic and that the market is nearing a bottom.<br />A low TRIN shows the opposite,the bulls are overoptimistic,the rally is unjustified and a market top is near.<br /><br />But the situation is complicated somewhat because TRIN is handled differently in each of the different market conditions. Both overbought and oversold lines must be plotted at particular levels depending on the nature of the market.<br /><br />For example,<br />In a bull market, 0.1--0.80 overbought& 0.80--1.++ oversold<br />In a bear market, 0.1--0.70 overbought& 0.70--1.++ oversold<br /><br />the only time a value greater than 1.0 is used is in an oversold condition in a raging bull market.<br /><br /><span style="font-weight: bold;">Calculation</span><br />The Arms Index is calculated by first dividing the number of stocks that advanced in price by the number of stocks that declined in price to determine the Advance/Decline Ratio. Next, the volume of advancing stocks is divided by the volume of declining stocks to determine the Upside/Downside Ratio. Finally, the Advance/Decline Ratio is divided by the Upside/Downside Ratio.<br /><br /><span>Trin is used for Indices only like Dowjones,NYSE,Nikkei225...</span>to Calculate Trin in MS Excel:.<br />Column | Description | Formula<br /><e2),1,0) u="" have="" to="" enter="" formulae="" in="" i="" column="" 2nd="" row="" j="Decl.stks"><e2,g2,0) u="" have="" to="" enter="" formulae="" in="" m="" column="" 2nd="" row="" n="Decl.Volumes"><span>A = Date<br />B = Open/Previous Close<br />C = High<br />D = Low<br />E = LTP/Close Price<br />F = prev<br />G = trd qty<br />H = Turnover<br />I = Adv stks =IF((F2less thanE2),1,0) u have to enter formulae in I column 2nd row and copy it till 51st row<br />J = Decl.stks =IF((F2greater thanE2),1,0) u have to enter formulae in J column 2nd row and copy it till 51st row<br />K = Total Adv Stks =SUM(I2:I51) u have to enter formula in K column 51st row<br />L = Total Dec Stks =SUM(J2:J51) u have to enter formula in L column 51st row<br />M = Adv Volumes =IF(F2less thanE2,G2,0) u have to enter formulae in M column 2nd row and copy it till 51st row <br /><br />N = Decl.Volumes =IF(F2greater thanE2,G2,0) u have to enter formula in N column 2nd row and copy it till 51st row<br />O = Total Adv.Volumes =SUM(M2:M51) u have to enter formula in O column 51st row<br />P = Total Decl.Volumes =SUM(N2:N51) u have to enter formula in P column 51st row<br />Q = Trin/The Arms Index =(K51/L51)/(O51/P51) u have to enter formula in Q column 51st row<br />R = Total Index Volumes =SUM(G2:G51) u have to enter formula in R column 51st row<br /><br />pls change "greater than" and "less than" words with symbols "</span></e2,g2,0)></e2),1,0)><span> >< "</span><e2),1,0) u="" have="" to="" enter="" formulae="" in="" i="" column="" 2nd="" row="" j="Decl.stks"><e2,g2,0) u="" have="" to="" enter="" formulae="" in="" m="" column="" 2nd="" row="" n="Decl.Volumes"><span>.<br /><e2),1,0)u have="" to="" enter="" formulae="" in="" i="" column="" 2nd="" and="" copy="" it="" till="" 51st="" row="" j="Decl.stks"><e2,g2,0) uhaveto="" enter="" formulae="" in="" m="" column="" 2nd="" and="" copy="" ittill="" 51st="" row="" n="Decl.Volumes"><br /></e2,g2,0)></e2),1,0)u></span></e2,g2,0)></e2),1,0)><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_rFxFyFsbzlw/RyXsg1ZVd0I/AAAAAAAAAJE/1BNs2hfCEGQ/s1600-h/trin+image.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="http://4.bp.blogspot.com/_rFxFyFsbzlw/RyXsg1ZVd0I/AAAAAAAAAJE/1BNs2hfCEGQ/s320/trin+image.jpg" alt="" id="BLOGGER_PHOTO_ID_5126763799664490306" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><span style="font-weight: bold;"></span>Rajeev k shenoyhttps://plus.google.com/113646154549907571677noreply@blogger.com0