Weekly Rankings

DAX Monthly return

DAX Monthly return

MACD To find market reversals

You can use MACD indicator with trends line to fine the major market reversal points.

MACD To find market reversals

You can use MACD indicator with trends line to fine the major market reversal points.

Be aware of stock advisers(MARKUS FRICK)

Always make your own analysis and decide independently by yourself.



Listen what Andre Kostolany is saying about the stock advisers from here.

Be aware of stock advisers(MARKUS FRICK)

Always make your own analysis and decide independently by yourself.



Listen what Andre Kostolany is saying about the stock advisers from here.

Weekly Rankings

DAX: Current New Highs and New Lows Index

Blue points shows 52w highs of the DAX index.
Year to Date 52 week DAX new highs and new lows index.
Long term 52 week DAX new highs and new lows index.

Year to date DAX 20 Day new highs and new lows index.Long term DAX 20 Day new highs and new lows index.

If you do not know how to interpret this indicator, you can go to marketscreen.com to learn more about the interpretation of this indicator.

DAX: Current New Highs and New Lows Index

Blue points shows 52w highs of the DAX index.
Year to Date 52 week DAX new highs and new lows index.
Long term 52 week DAX new highs and new lows index.

Year to date DAX 20 Day new highs and new lows index.Long term DAX 20 Day new highs and new lows index.

If you do not know how to interpret this indicator, you can go to marketscreen.com to learn more about the interpretation of this indicator.

Downloading single stock data of an index

If you are investing foreign markets you need to calculate some indicators by yourself. For example New highs and new lows indicator requires additional effort to estimate for the non-US markets e.g. Turkey, germany etc..

There are many websites for the US markets which provides also such kind of indicator graphs.
But for other cases we need to calculate this by ourselfts. The below excel macro shows you how you can download the 30 DAX stock data to make new highs new lows analysis of the DAX index.

Downloading single stock data of an index

If you are investing foreign markets you need to calculate some indicators by yourself. For example New highs and new lows indicator requires additional effort to estimate for the non-US markets e.g. Turkey, germany etc..

There are many websites for the US markets which provides also such kind of indicator graphs.
But for other cases we need to calculate this by ourselfts. The below excel macro shows you how you can download the 30 DAX stock data to make new highs new lows analysis of the DAX index.

Order Types

Limit order: Buy order will be filled maximum at the limit value. Sell orders will be filled minimum at the limit value. e.g. a stock is currently trading at 47,8€. You do not want to pay more than 47,6€. Your order will only be filled at 47,6€ or for a better price (less than 47,6€).

Stop-Market order: If the price of a security reaches or exceeds the value of the stop-market price the order will be an unlimited market order.

Stop-Limit order: Like stop market order but the order will be limit order instead of the market order.

Order Types

Limit order: Buy order will be filled maximum at the limit value. Sell orders will be filled minimum at the limit value. e.g. a stock is currently trading at 47,8€. You do not want to pay more than 47,6€. Your order will only be filled at 47,6€ or for a better price (less than 47,6€).

Stop-Market order: If the price of a security reaches or exceeds the value of the stop-market price the order will be an unlimited market order.

Stop-Limit order: Like stop market order but the order will be limit order instead of the market order.

Analyzing the Markets

John Murphy has an excellent work on intermarket analysis. You can analyse the market direction by analysing the interrelations between the markets.

Joseph Ellis has an excellent book about the economic analysis "Ahead of the curve".

[1] Joseph Ellis, Aheadofthecurve
[2] John Murphy, intermarket analysis

Analyzing the Markets

John Murphy has an excellent work on intermarket analysis. You can analyse the market direction by analysing the interrelations between the markets.

Joseph Ellis has an excellent book about the economic analysis "Ahead of the curve".

[1] Joseph Ellis, Aheadofthecurve
[2] John Murphy, intermarket analysis

CALCULATING THE PROTECTIVE STOPS

You can calculate your risk in the trade. In our case it is (142-132=) 10 euro. If you divide this by your acceptable risk level let say 2% of the capital which is 200€, you can find the number of stocks that you are allowed to buy. I used the google calculator to make this simple calculation. As you can see we are allowed to by 20 stocks for this trade.

CALCULATING THE PROTECTIVE STOPS

You can calculate your risk in the trade. In our case it is (142-132=) 10 euro. If you divide this by your acceptable risk level let say 2% of the capital which is 200€, you can find the number of stocks that you are allowed to buy. I used the google calculator to make this simple calculation. As you can see we are allowed to by 20 stocks for this trade.

Using the VIX Indicator with the MACDHistogram

VIX indicator can be used with MACD Histogram to determine the market turning points. It can be an additional tool to confirm your entry.

Using the VIX Indicator with the MACDHistogram

VIX indicator can be used with MACD Histogram to determine the market turning points. It can be an additional tool to confirm your entry.

Q-CELLS watch

NASDAQ/NYSE Ratio

Then the ratio is declining it means that NYSE is performing better than the NASDAQ. If the ratio is increasing it means that the NASDAQ is performing better than the NYSE. According to the Modified Dow Thoery NASDAQ is the leading index. If the ratio is higher than the 10 week moving average then it is bullish. If the ratio is less than the 10 week moving average then it is less bullish.

You can go to the stockcharts.com web site to see this ratio or you can click on this link.

NASDAQ/NYSE Ratio

Then the ratio is declining it means that NYSE is performing better than the NASDAQ. If the ratio is increasing it means that the NASDAQ is performing better than the NYSE. According to the Modified Dow Thoery NASDAQ is the leading index. If the ratio is higher than the 10 week moving average then it is bullish. If the ratio is less than the 10 week moving average then it is less bullish.

You can go to the stockcharts.com web site to see this ratio or you can click on this link.

Risks of Investing

Unexpected events can interrupt the operations of the stock exchange.

ISTANBUL - The Istanbul Stock Exchange (IMKB) was unable to trade in Wednesday’s morning’s session after the exchange was cut off due to a broken fibre optic cable. According to a statement issued by the IMKB, data flow to the exchange had been interrupted after the fibre optic cables was severed during road work by the local municipality on Istinye Street, close to the near IMKB building.
“Therefore, opening session of the stock exchange has been postponed,” the statement said. “The opening time of the trading will be announced later.”
Though most of its employees are currently on strike, Turk Telekom said that it had dispatched technical teams to fix the problem."[1]

Source:
[1] NTVMSNBC 28.Nov.2007 http://www.ntvmsnbc.com/news/427877.asp

Risks of Investing

Unexpected events can interrupt the operations of the stock exchange.

ISTANBUL - The Istanbul Stock Exchange (IMKB) was unable to trade in Wednesday’s morning’s session after the exchange was cut off due to a broken fibre optic cable. According to a statement issued by the IMKB, data flow to the exchange had been interrupted after the fibre optic cables was severed during road work by the local municipality on Istinye Street, close to the near IMKB building.
“Therefore, opening session of the stock exchange has been postponed,” the statement said. “The opening time of the trading will be announced later.”
Though most of its employees are currently on strike, Turk Telekom said that it had dispatched technical teams to fix the problem."[1]

Source:
[1] NTVMSNBC 28.Nov.2007 http://www.ntvmsnbc.com/news/427877.asp

The Rule of Multiple Techniques

Technical analysis is more about probabilities. There is no indicator which always gives 100% correct signals. Therefore it is better to watch for confirmion of each indicator signal by other indicators. Arthur Sklarew decribes this in his book "Techniques of professional chart analysist" in the following way.

"Technicians know very well that the price chart analysis is not an exact science. No single chart technique yet discovered is infallible. Despite this lack of perfection, price chart analysis can very often give reliable forecasts of trend direction... ...Confirmation is therefore an essential component of every valid chart signal.

In addition to comparing price charts of different contract months and time scales, it has been my experience that the accuracy of any technical price forecast can be improved greatly by the application of a principle that I call the “Rule of Multiple Techniques.” The Rule of Multiple Techniques requires that the chart technician not rely solely on one single technical signal or indicator, but look for conformation from other technical indicators. The more technical indicators that confirm each other, the better the chance of an accurate forecast." page 8

The Rule of Multiple Techniques

Technical analysis is more about probabilities. There is no indicator which always gives 100% correct signals. Therefore it is better to watch for confirmion of each indicator signal by other indicators. Arthur Sklarew decribes this in his book "Techniques of professional chart analysist" in the following way.

"Technicians know very well that the price chart analysis is not an exact science. No single chart technique yet discovered is infallible. Despite this lack of perfection, price chart analysis can very often give reliable forecasts of trend direction... ...Confirmation is therefore an essential component of every valid chart signal.

In addition to comparing price charts of different contract months and time scales, it has been my experience that the accuracy of any technical price forecast can be improved greatly by the application of a principle that I call the “Rule of Multiple Techniques.” The Rule of Multiple Techniques requires that the chart technician not rely solely on one single technical signal or indicator, but look for conformation from other technical indicators. The more technical indicators that confirm each other, the better the chance of an accurate forecast." page 8

Merket Review

Finding the unusual moves

Standard distribution of the stock range can give us a clue about the market sentiment. If the range of the current index is above the normal levels we can expect the strong move next day.


Here are standard normal distributions of the indexes.



The image below is showing the unusual moves of the DAX index. As you can see this technique can be a strong confirmation for your other technical analysis tools.

Finding the unusual moves

Standard distribution of the stock range can give us a clue about the market sentiment. If the range of the current index is above the normal levels we can expect the strong move next day.


Here are standard normal distributions of the indexes.



The image below is showing the unusual moves of the DAX index. As you can see this technique can be a strong confirmation for your other technical analysis tools.