A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the “signal line”, is then plotted on top of the MACD, functioning as a trigger for buy and sell signals. There are three common methods used […]
Moving Average Convergence Divergence: MACD Read More »
The relative strength indicator is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 – 100/(1 + RS*) *Where RS = Average of x days’ up closes / Average of
Relative Strength Indicator: RSI Read More »
Which is better?? It depends upon the type of investor. The traditional, less sophisticated IRA investor who reallocates strategically, rather than tactically, keeps expenses low and is not a stock picker, may find the process of purchasing shares from a mutual fund company and redeeming them a simpler process. Additionally, plan sponsors’ use of mutual funds is well
Mutual Funds Vs. ETFs Read More »
An Exchange Traded Fund, known as an ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Because it trades like a stock, an ETF does
Exchange Traded Funds Read More »
The Stochastic Oscillator was developed by Dr. George Lane to track market momentum. It is an indicator that measures the relationship between an issue’s closing price and its price range over a predetermined period of time. The following equation is given only to highlight how the % figure is calculated. The paragraph under the formula
