Double Bottom Patterns are useful reversal patterns in a downtrend. They are identified by measuring from the lowest trough to the level of the intervening peak.
Incredible Charts was started by two brothers: Colin Twiggs, a chartered accountant with a background in investment banking; and Robin, a Pascal/Delphi programmer.
Negative yield curves have proved reliable predictors of economic recession. However, recent experience in the United Kingdom and Australia raises questions...
Momentum, Rate of Change, Relative Strength and Stochastic are the most popular momentum oscillators, fluctuating between overbought and oversold levels.
Negative yield curves have proved reliable predictors of economic recession. However, recent experience in the United Kingdom and Australia raises questions...
Debt growth is important because it reveals the level of inflationary pressure in the economy; and inflationary pressure indicates future interest rate policy.
To protect ourselves from future banking panics we need to understand the underlying causes. Panics are normally precipitated by an insolvency crisis, which then escalates into a liquidity crisis as depositors rush to withdraw their funds.
Ben Bernanke and I have little in common, but we share the view that any form of recovery is dependent on confidence. Where we differ is in how to restore confidence.
Negative yield curves have proved to be reliable predictors of economic recession over the past 50 years. Research by Jonathan Wright, a research economist at the Federal Reserve, questioned whether this relationship still held. But his questions were answered by the GFC in 2007/2008.
Richard Koo, Chief Economist %u2013 Nomura Research, explains why quantitative easing (QE) will not work in the GFC. Japan experienced this over the last two decades; the current crisis is merely a re-run.
The real danger posed by debt is once debt becomes a significant fraction of GDP, and its growth rate substantially exceeds that of GDP, the economy will suffer a recession even if the debt to GDP ratio merely stabilizes. By Associate Professor Steve Keen, University of Western Sydney.
Serious imbalances in the US economy: Paul Volcker, former chairman of the Federal Reserve (1979 - 1987), in his February 2005 address to the Stanford Institute for ...
Inflation is the most commonly used economic term in the popular media. A Nexis search in 1996 found 872,000 news stories over the past twenty years that used the word inflation.
Interest Rates, Recession or Depression? Before we can even begin to discuss interest rates intelligently, we must first define what it is that we are actually talking about ...
Gold is generally quoted in US dollars per ounce of gold; so any fluctuations in the strength of the dollar are likely to be reflected in the dollar priceof gold.
Market Sentiment indicator is especially designed for mobile devices, with columns displaying relative performance of buyers against sellers over Daily, Weekly, Monthly, Quarterly and Annual periods.
Incredible Charts fetches packets of data from the server as you chart each stock - eliminating the need for daily data downloads. The data format is not compatible with other charting software.
Stocks may be adjusted for the dilution effect of share splits, special dividends, rights issues, spin-offs and reconstructions. Here are some examples ...
Recently used project files are displayed as tabs below the price chart (and indicators), above the bottom price bar. Click on a tab, for example [Relative Strength], to display the project ...
A project contains a set of indicators, trendlines, captions and default settings. A project does not contain data relating to specific securities. All data is stored in a ...
Trend channels are used to track the momentum of a trend, with peaks (or highs) frequently respecting the upper trend channel; and troughs (or lows) respecting the lower ...
Trend channels are used to track the momentum of a trend, with peaks (or highs) frequently respecting the upper trend channel; and troughs (or lows) respecting the lower ...
Recently used project files are displayed as tabs below the price chart (and indicators), above the bottom price bar. Click on a tab, for example [Relative Strength], to display the project ...
A project contains a set of indicators, trendlines, captions and default settings. A project does not contain data relating to specific securities. All data is stored in a ...
Stocks may be adjusted for the dilution effect of share splits, special dividends, rights issues, spin-offs and reconstructions. Here are some examples ...
Incredible Charts fetches packets of data from the server as you chart each stock - eliminating the need for daily data downloads. The data format is not compatible with other charting software.
Incredible Charts was started by two brothers: Colin Twiggs, a chartered accountant with a background in investment banking; and Robin, a Pascal/Delphi programmer.
Please make use of the 30-day free trial before you subscribe to Incredible Charts Premium Service. Thereafter, refunds will be made at the discretion of management of Vizhon Corporation.
A powerful tool for stock selection, Price Ratio is also referred to as Relative Strength and compares the performance of a stock relative to an index or a related stock.
The Moving Average smooths price data to create a powerful measure of trend direction. Simple, weighted and exponential moving averages are most popular.
Weighted moving averages eliminate the distortion common to simple moving averages, but are more difficult to construct than exponential moving averages.
Wilder moving averages are used mainly in indicators developed by J. Welles Wilder. Essentially the same as an exponential moving average, they use different weightings, for which users need to make allowance.
Displaced Moving Averages are useful for trend-following purposes, reducing the number of whipsaws compared to an equivalent Exponential or Simple Moving Average.
The MACD Histogram (Moving Average Convergence Divergence Histogram) provides far earlier and more responsive signals than the original MACD, but is also more volatile.
MACD Percentage Price Oscillator is a variation of the MACD indicator. The major difference is the percentage scale which enables comparison between stocks.
The Linear Regression Indicator is used for trend identification and trend following in a similar fashion to moving averages, but reacts faster than an MA to trend changes.
The Moving Average smooths price data to create a powerful measure of trend direction. Simple, weighted and exponential moving averages are most popular.
ADX is part of the Directional Movement System developed by J. Welles Wilder. It is used to warn of trend changes and to identify whether a stock is trending or ranging.
Developed by Dr Alexander Elder, the Elder-Ray indicator measures buying and selling pressure in the market and is often used as part of the Triple Screen trading system.
Developed by Welles Wilder, RSI (Relative Strength Index) is a popular momentum oscillator that compares upward and downward movements in closing price.
The Slow Stochastic Oscillator provides more reliable signals than the original indicator, applying further smoothing to reduce volatility and improve accuracy.
The Stochastic Oscillator tracks market momentum and provides excellent entry and exit signals from crossover of %K and %D lines or overbought/oversold levels.
Twiggs Smoothed Momentum is a smoothed version of the proprietary Twiggs Momentum oscillator. Its purpose is to provide a slower, less erratic signal for following long-term trends.
Stochastic RSI was designed by Tushar Chande and Stanley Kroll to generate more Overbought and Oversold signals than Welles Wilder's original Relative Strength oscillator.
Bollinger Band filters are calculated using exponential moving averages. Values are compared to Bollinger Bands at 1.0 standard deviation above and below the selected moving average.
MACD Percentage Price Oscillator is a variation of the MACD indicator. The major difference is the percentage scale which enables comparison between stocks.
The Accumulation Distribution Indicator tracks the relationship between price and volume, acting as a leading indicator of price movements. The strongest signals are divergences.
Richard W Arms' powerful Ease of Movement indicator highlights the relationship between volume and price changes; useful for assessing the strength of a trend.
Colin Twiggs' Money Flow is a derivation of the Chaikin Money Flow indicator. Position above/below the zero line gives advance indication of breakouts, while divergences warn of reversals.
Williams Accumulation Distribution is traded on divergences. When price makes a new high and the indicator fails to exceed its previous high, distribution is taking place.
ATR Trailing Stops are primarily used to protect capital and lock in profits on individual trades but they can also be used, in conjunction with a trend filter, to signal entries.
Developed by Marc Chaikin. Look for sharp increases in volatility prior to market tops and bottoms, followed by low volatility as the market loses interest.
The Choppiness Index is a volatility indicator developed by Australian commodity trader Bill Dreiss to indicate whether a market is trending or ranging.
Bollinger's Bandwidth Indicator is used to warn of changes in volatility. A squeeze, where the bands converge into a narrow neck, often precedes a sharp price rise or fall.
The Accumulation Distribution Indicator tracks the relationship between price and volume, acting as a leading indicator of price movements. The strongest signals are divergences.
ADX is part of the Directional Movement System developed by J. Welles Wilder. It is used to warn of trend changes and to identify whether a stock is trending or ranging.
Average True Range (ATR) Bands are used to signal exits in a similar fashion to ATR Trailing stops, but without the stop-and-reverse (SAR) of trailing stops.
ATR Trailing Stops are primarily used to protect capital and lock in profits on individual trades but they can also be used, in conjunction with a trend filter, to signal entries.
Bollinger's Bandwidth Indicator is used to warn of changes in volatility. A squeeze, where the bands converge into a narrow neck, often precedes a sharp price rise or fall.
Developed by Marc Chaikin. Look for sharp increases in volatility prior to market tops and bottoms, followed by low volatility as the market loses interest.
The Choppiness Index is a volatility indicator developed by Australian commodity trader Bill Dreiss to indicate whether a market is trending or ranging.
Displaced Moving Averages are useful for trend-following purposes, reducing the number of whipsaws compared to an equivalent Exponential or Simple Moving Average.
Richard W Arms' powerful Ease of Movement indicator highlights the relationship between volume and price changes; useful for assessing the strength of a trend.
Developed by Dr Alexander Elder, the Elder-Ray indicator measures buying and selling pressure in the market and is often used as part of the Triple Screen trading system.
The Linear Regression Indicator is used for trend identification and trend following in a similar fashion to moving averages, but reacts faster than an MA to trend changes.
The MACD Histogram (Moving Average Convergence Divergence Histogram) provides far earlier and more responsive signals than the original MACD, but is also more volatile.
MACD Percentage Price Oscillator is a variation of the MACD indicator. The major difference is the percentage scale which enables comparison between stocks.
The Moving Average smooths price data to create a powerful measure of trend direction. Simple, weighted and exponential moving averages are most popular.
A simple trend-following system that plots bands at a set precentage above and below closing price, with a ratchet mechanism to prevent the lower band from falling during a long trade and the upper band from rising during a short trade.
A powerful tool for stock selection, Price Ratio is also referred to as Relative Strength and compares the performance of a stock relative to an index or a related stock.
Developed by Welles Wilder, RSI (Relative Strength Index) is a popular momentum oscillator that compares upward and downward movements in closing price.
The Slow Stochastic Oscillator provides more reliable signals than the original indicator, applying further smoothing to reduce volatility and improve accuracy.
Standard deviation channels, plotted at a set number of standard deviations around a linear regression line, provide useful entry and exit signals for trading trends.
The Stochastic Oscillator tracks market momentum and provides excellent entry and exit signals from crossover of %K and %D lines or overbought/oversold levels.
Stochastic RSI was designed by Tushar Chande and Stanley Kroll to generate more Overbought and Oversold signals than Welles Wilder's original Relative Strength oscillator.
Colin Twiggs' Money Flow is a derivation of the Chaikin Money Flow indicator. Position above/below the zero line gives advance indication of breakouts, while divergences warn of reversals.
Twiggs Smoothed Momentum is a smoothed version of the proprietary Twiggs Momentum oscillator. Its purpose is to provide a slower, less erratic signal for following long-term trends.
Twiggs Trend Index is a variation of the popular Twiggs Money Flow indicator, calculated using Volatility instead of Volume, which offers two distinct advantages.
Weighted moving averages eliminate the distortion common to simple moving averages, but are more difficult to construct than exponential moving averages.
Wilder moving averages are used mainly in indicators developed by J. Welles Wilder. Essentially the same as an exponential moving average, they use different weightings, for which users need to make allowance.
Williams Accumulation Distribution is traded on divergences. When price makes a new high and the indicator fails to exceed its previous high, distribution is taking place.
The critical questions in value investing are: At what rate will earnings (and dividends) grow over the investment period? What is the (investments) risk? Can management be trusted...
The PEG ratio is a powerful formula which compares earnings growth and the Price Earnings Ratio: Divide the current Price Earnings Ratio by the expected long-term growth rate (in earnings per share) ...
Market Sentiment indicator is especially designed for mobile devices, with columns displaying relative performance of buyers against sellers over Daily, Weekly, Monthly, Quarterly and Annual periods.
The Accumulation Distribution Indicator tracks the relationship between price and volume, acting as a leading indicator of price movements. The strongest signals are divergences.
Richard W Arms' powerful Ease of Movement indicator highlights the relationship between volume and price changes; useful for assessing the strength of a trend.
Colin Twiggs' Money Flow is a derivation of the Chaikin Money Flow indicator. Position above/below the zero line gives advance indication of breakouts, while divergences warn of reversals.
Williams Accumulation Distribution is traded on divergences. When price makes a new high and the indicator fails to exceed its previous high, distribution is taking place.
The Moving Average smooths price data to create a powerful measure of trend direction. Simple, weighted and exponential moving averages are most popular.
Weighted moving averages eliminate the distortion common to simple moving averages, but are more difficult to construct than exponential moving averages.
Wilder moving averages are used mainly in indicators developed by J. Welles Wilder. Essentially the same as an exponential moving average, they use different weightings, for which users need to make allowance.
Displaced Moving Averages are useful for trend-following purposes, reducing the number of whipsaws compared to an equivalent Exponential or Simple Moving Average.
The MACD Histogram (Moving Average Convergence Divergence Histogram) provides far earlier and more responsive signals than the original MACD, but is also more volatile.
The MACD Histogram (Moving Average Convergence Divergence Histogram) provides far earlier and more responsive signals than the original MACD, but is also more volatile.
MACD Percentage Price Oscillator is a variation of the MACD indicator. The major difference is the percentage scale which enables comparison between stocks.
Point and Figure charts are used to identify support levels, resistance and chart patterns. Point and Figure ignores the time factor and concentrate solely on movements in price.
To find stocks that are consolidating within a narrow range, we apply the following filter: Directional Movement ADX Value Filter; Minimum 2; Maximum 10 ...
Bollinger Band filters are calculated using exponential moving averages. Values are compared to Bollinger Bands at 1.0 standard deviation above and below the selected moving average.
The Volatility Ratio identifies days with exceptionally wide trading ranges (the distance between High and Low) and is used to signal likely reversal days. Details ...
The volume filter is used to filter out stocks which show insufficient activity (ie. stocks with low liquidity): The Minimum field represents volume (in number of ...
Volume spikes are days on which there is unusually high volume activity, measured by comparing daily volume to a 50-day exponential moving average (of volume).
A stock chart displays historical price data of a particular company or index over time. Typically, indicators are used to highlight a particular aspect of price or volume behaviour to provide insight and help with analysis.
Charles Dow believed that stocks yielding below 3.5% were over-priced. Nowadays, we use Robert Shiller's CAPE or PE based on highest trailing earnings.
Momentum, Rate of Change, Relative Strength and Stochastic are the most popular momentum oscillators, fluctuating between overbought and oversold levels.
In its simplest terms, momentum refers to buying stocks which exhibit past over-performance. Eugene Fama, the father of the efficient market hypothesis, refers to momentum as "the premier unexplained anomaly".
Dr Bruce Vanstone summarizes the key characteristics of investing using momentum based approaches and discusses some approaches to managing risk in momentum models and the benefits investors can expect when investing with rules-based funds.
ATR Trailing Stops are primarily used to protect capital and lock in profits on individual trades but they can also be used, in conjunction with a trend filter, to signal entries.
For a market specialist, making money out of stop loss orders is as difficult as hunting dairy cows with a high-powered rifle and telescopic sights.....
Investors often use distorted logic when buying stocks: what goes up must come down? Stocks that rise steeply in price and make new highs are viewed as expensive ...
Investors often use distorted logic when buying stocks: what goes up must come down? Stocks that rise steeply in price and make new highs are viewed as expensive ...
For a market specialist, making money out of stop loss orders is as difficult as hunting dairy cows with a high-powered rifle and telescopic sights.....
Finding the Right Trading Course (and avoiding the obvious pitfalls): If you had to enrol on a one-week trading course, you may learn some good basic trading skills.
Becoming an Expert Trader (and the value of trading courses): It may take 3 to 5 years to become a good trader. Becoming an expert could take even longer ...
The Linear Regression Indicator is used for trend identification and trend following in a similar fashion to moving averages, but reacts faster than an MA to trend changes.
The Moving Average smooths price data to create a powerful measure of trend direction. Simple, weighted and exponential moving averages are most popular.
ADX is part of the Directional Movement System developed by J. Welles Wilder. It is used to warn of trend changes and to identify whether a stock is trending or ranging.
Developed by Dr Alexander Elder, the Elder-Ray indicator measures buying and selling pressure in the market and is often used as part of the Triple Screen trading system.
Developed by Welles Wilder, RSI (Relative Strength Index) is a popular momentum oscillator that compares upward and downward movements in closing price.
The Slow Stochastic Oscillator provides more reliable signals than the original indicator, applying further smoothing to reduce volatility and improve accuracy.
The Stochastic Oscillator tracks market momentum and provides excellent entry and exit signals from crossover of %K and %D lines or overbought/oversold levels.
Twiggs Smoothed Momentum is a smoothed version of the proprietary Twiggs Momentum oscillator. Its purpose is to provide a slower, less erratic signal for following long-term trends.
Stochastic RSI was designed by Tushar Chande and Stanley Kroll to generate more Overbought and Oversold signals than Welles Wilder's original Relative Strength oscillator.
Bollinger Band filters are calculated using exponential moving averages. Values are compared to Bollinger Bands at 1.0 standard deviation above and below the selected moving average.
MACD Percentage Price Oscillator is a variation of the MACD indicator. The major difference is the percentage scale which enables comparison between stocks.
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