Moving-Average-Formula..jpg Simple Moving Average (SMA) The simple moving average, as its name suggests (Simple Moving Average), is a widely used tool. There is a wheel to follow the movement of the price ways to find moving averages will be weighted Let all values that are calculated are equally important to the price. By relying on the principle of taking data in a certain period or the method of \"finding the arithmetic mean\" in mathematics itself. SMA2_602x345.png Although it is an easy to use tool and is characterized by movements according to price changes but because The simple moving average (SMA) is calculated by equal weighting. Therefore resulting in changes respond to price movements quite slow and far from the stock price Investors may miss the opportunity to take stocks or sell stocks for profit. However Investors may fix this by adjusting the Parameter (the required period) so that the SMA line moves closer to the stock price. Exponential Moving Average (EMA) Is a moving average Another type that branched out from the Moving Average group. The principle of calculating the moving average is different. The moving average EMA is another type of weighted calculation. That pays attention to the variables That affects the price change quite quickly and weighting. The Exponential Calculation Principle attempts to correct the weakness of the SMA (Simple Moving Average) because it gives equal importance to all data. If compared, it can be seen that the EMA lines are moving closer to the stock price than the SMA if using the same data set. And the desired time period are the same. ema.jpg The Exponential Moving Average (EMA) was developed to reduce the weakness of the SMA because the SMA is equally weighted. This affects the movement of the moving average when the price changes. And the moving average EMA adds weight to the data. This makes it sensitive to price changes, and when the price changes, the EMA changes with the price more noticeably and more quickly than other moving averages. Weighted Moving Average (WMA) The weighted moving average is an extension of the SMA by applying statistical methods. To make moving averages respond faster to price changes. By assigning different weights to the data, the most recent data is given more weight than the previous data. (Which is considered older data), but still uses a linear division method, which is divided by the sum of all weights. As a result, the result reflects the sensitivity of the movement by moving closer to the stock. WMA2_Whipsaw602x345.png The Weighted Moving Average (WMA) was developed to solve the problem of weighting the SMA line by weighting the last day\u0027s calculation and the previous data being gradually weighted down. Which results That is, the weighted moving average\u0027s response to changes in stock or index prices is significantly faster than the SMA. And the distance from the stock price is quite close than the SMA.
Point-and-Figure-Chart-7.png image-25.png Trend line In addition to the above, when using point-and-figure The trend line (trend line) at an angle of 45 degrees is also introduced to help determine the current trend. As well as being used as a filter (filter) in providing trading signals which trend lines have Here\u0027s how to draw a line: In case of an uptrend, the trend line is called the bullish support line and is drawn at an angle of 45 degrees up to the right. Hand from the square below the end of the O symbol down one square as in the example picture. As long as the price stays above that line, the trend is still considered bullish. Conversely, if the trend is downtrend, the trend line is called the bearish resistance line and is drawn at an angle of 45 degrees down to the right. From the box that is above the top of the X symbol up to 1 box as in the example picture As long as the price is below the downtrend line, the trend is still considered bearish. Price Target Although the above studies has led traders to various signals In buying or selling, but try to think that If a trader knows it\u0027s happening Where is the buy signal? Even if it is a point where short-term profits can begin to come out. Before changing direction, or if knowing that it gives a sell signal, where is it? Even if it\u0027s appropriate to enter the shopping spoon before the change of direction. One method which can Used to solve such problems is to set the price objectives (price objectives), which can be done in 2 ways: 1. Horizontal count The basic principle hidden behind this method is The time interval a stock takes to consolidate is important in determining its potential move. (consolidation) is therefore used to forecast price levels. To go up to test or vice versa Measuring the spread width (Distribution) is also used to forecast the price level. To be adapted to the test which the formula for finding goals In the event that the price is rising, Hu = PL + (W X RV) 1. Hu = target price level PL = The lowest price (from the symbol O) used as the basis for the calculation. W = The number of columns used as the basis for the calculation. RV = reversal value = (box size X the number of box) 2. The price level used as a base Must be able to point out clearly. 3. The column count or W value excludes the breakout column. 4. RV is the minimum reversal. The formula used to find the target In the event that the price is declining, Hd = PH - (W X RV) Hd = target price level PH = the highest price (from signal X) used as the basis for the calculation. W = number of columns used as a basis for the calculation RV = reversal value 2. Vertical count This method is quite simpler than the first method. Which formula is used to find price targets In case the price moves up, it is Vup = minimum base price + (number of boxes in the first reversal X RV) On the other hand, the formula used to find price targets If the price is falling, Vdown = Highest base price - (number of boxes at first reversal X RV) At this point, we hope that from the above-mentioned principles Whether it\u0027s about creating a diagram as well as the form that will be given buy or sell signal This technical analysis tool called Points and Figures should provide beginner traders with the right methods and strategies. To reduce the risk Before going into the market to trade seriously
technical analysis 02.jpg 👩🎓 🧑🎓 “technical analysis” It is a way to study the behavior of stocks. By using chart for the purpose of forecasting future price trends technical analyst will study the behavior of stocks from the price and trading volume (or trading value), which can be considered is an important source of information for technical analysis However, the strategy in this technical analysis. It’s not that all of a sudden it’s formulated without principles. But actually, there are three concepts or beliefs that this analysis is based on: 1. The behavior of the stock price that is expressed Has absorbed everything that has happened. That means that when economic, political, etc. Changes affect the supply and demand in stocks, of course, will affect the price. Because the price is set from demand and supply of stocks, so if the change occurs up is positive would cause more demand than supply. Or simply say Buying force is greater than Selling pressure. Will result in a price on the other hand, if the changes are negative would produce more supply than demand. (Selling force is greater than Buying pressure) will result in the price going down. 👩🎓 🧑🎓 However, from the foregoing Key data that technical analysts use to analyze will aim at price and volume. So it seems that technical analysts shorten the scope of study analytical model Fundamental Analysis by jumping to study the conclusion of the impact. And pay little attention to the cause, for example, if the price rises, it means a change in various factors. Quite positive But if mold The price has declined. It means change in factors will be in the negative direction while analyzing fundamentals It will delve into the cause. Which is the driving force behind the resulting supply and demand, but both approaches to solve the problem of the direction of the share price that should be the same. 2. The price will continue to move in the same trend. Until the original trend is really gone The above text contains complete in itself to give you an understanding and there is clarity in This is more. For example, you have thrown a ping-pong ball into the air. (Where the ping-pong ball is considered a stock price.)It can be seen that the ping-pong ball will continue to move up. It follows the direction of the throw and the throw (throw) at first, but over time, the momentum gradually weakens (for whatever reason). Will start to slow down until the transmission is exhausted The ping pong ball will fall down. Which the condition of the movement of the ping-pong ball From the throw until before the drop will be in the direction or upward trend. And will begin to change direction to a downtrend (when the ping pong ball starts to fall) after the uptrend has ended. 3. Patterns or behaviors of stocks that have occurred in the past. It can be applied in the present and in the future, or what we might call “history repeats itself” because technical analysis is more dependent on price and volume, which reflect the net effect of the data source. (information set) in the forecast which the price and volume of this transaction as an indicator of psychology in terms of courage or fear, etc., which no matter what era All of the above has never changed. Therefore, the patterns that occurred in the past (reflecting psychology at that time) can still be used today. Including giving conditions or the probability for the direction of the stock”s movement to occur in the future. 👩🎓 🧑🎓 All three of the above can be considered concepts or fundamental beliefs that are the origins of technical analysis. Let you know that Those principles have these ideas behind them. By the chart itself It is not the cause of the stock price rising or falling because of the chart. It’s just something printed on a sheet of paper. But with the technical analysis that you will study further, you have the tools to analyze. This will pull out what the share price wants to tell you that the share price will move in any direction. Or it is time for a trend change to occur.