Forum Archive Index - March 2000

["Ian Rawnsley" <ianr@ie3.co.nz>]

As has been mentioned by Phylis some weeks ago, if you live in Auckland, then come along to the STANZ meetings to learn about these sort of things. The next meeting is on Thursday 23rd, 7:30pm at the McGhie Lecture Theatre, 73 Epsom Avenue. Entrance fee is $5.00.

 

MACD - Moving Average Convergence-Divergence Index. It is a two-component indicator based on two exponential moving price averages based on different time periods. The first component is the Phase line and the second component is known as the Signal line. These lines Cross-overs of one line against the other and going above or below the zero line give a signal to buy or sell.

 

Stochastic is an Indicator developed by George Lane using a time period of (say) 21 days. It relates the closing price to the price range from the previous (21 day) period and is expressed as a percentage and hence varies from 0 to 100. For example, 80% can indicate an overbought condition and below 20% indicates an oversold condition. The buy and sell signals generated by this indicator are by themselves fairly unreliable.

 

These type of Indicators can be used on shares and other instruments.

 

Ian Rawnsley

Founder Member of STANZ

 

 

-----Original Message-----
From: owner-sharechat@sharechat.co.nz [mailto:owner-sharechat@sharechat.co.nz]On Behalf Of Michael Gore
Sent: Tuesday, 21 March 2000 11:28
To: sharechat@sharechat.co.nz
Subject: [sharechat] charting

Just wondering if anyone would be prepared to share what type of charts they study and why?  Can anyone explain  simply what is stochastic and MACD? cheers michael