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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 […]

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

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

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

Simply stated, alpha is often considered to represent the value that a portfolio manager adds to or subtracts from a fund’s return Alpha is one of five technical risk ratios; the others are beta, standard deviation, R-squared, and the Sharpe ratio. These are all statistical measurements used in modern portfolio theory (MPT). All of these indicators are intended