http://www.darrenwinters.com Tue, 23 Dec 2008 17:23:29 +0000 http://backend.userland.com/rss092 en The Need for Statistical Techniques <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1610611985 1073750139 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin-top:0cm; margin-right:0cm; margin-bottom:10.0pt; margin-left:0cm; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; ... http://www.darrenwinters.com/statistical-techniques-applied-to-share-data-part-1 Many traders find candlestick charts easy to read and to interpret. They know, for instance, that a Marubozu indicates that either buyers controlled the market in a particular share or sellers did, and that an upper wick considerably longer than a lower one shows that buyers dominated, driving the prices ... http://www.darrenwinters.com/an-introduction-to-candlestick-charts-part-7 Occasionally you will see a candle that does not have a wick, either above or below the body of the candle. This is called a Marubozu and it indicates that the price of the stock never went outside the range set by the opening and closing prices. Either the peak ... http://www.darrenwinters.com/an-introduction-to-candlestick-charts-part-6-marubozu Reading a Candlestick Chart at a glance Several white candles in a row indicate stock prices that ended each day consistently higher than their opening values – a rising trend. Bull markets are characterised by white candles. Similarly, a series of black candles represents a generally falling (bearish) market. The lengths ... http://www.darrenwinters.com/an-introduction-to-candlestick-charts-part-5 Each day on a candlestick chart is represented by a symbol resembling a small candle (hence the name): a vertical rectangle that can be black or white with a small vertical line sticking out of the top, the “shadow” (or “wick” to persist with the candlestick metaphor). Unlike real candles, ... http://www.darrenwinters.com/an-introduction-to-candlestick-charts-part-3 The four elements represented on a Candlestick Chart The stock starts each day at a particular price, called the opening value, and ends each day at a (possibly) different value, the closing value. During the day it may reach a peak price above the opening value or drop to a minimum ... http://www.darrenwinters.com/an-introduction-to-candlestick-charts-part-2 What are Candlestick Charts? Candlestick charts are a graphical way of expressing the movement of share prices from day to day. Each entry in the chart represents a single day but encodes information about the behaviour of the price on that day. They are sometimes known as Japanese Candlestick Charts because ... http://www.darrenwinters.com/an-introduction-to-candlestick-charts-part-1 Technical Analysis does have its critics – those economists who say it is nothing more than a pseudoscience, one that has no basis in fact. Investors such as Warren Buffett and Peter Lynch say that there is precious little evidence that Technical Analysis works. However, various academic studies have shown ... http://www.darrenwinters.com/introduction-to-technical-analysis-part-8 Computer software lends itself readily to the processing of massive amounts of data, and they are ideal tools to use in Technical Analysis. There are two broad approaches to the automatic prediction of shares: those that use rule-based prediction (where the computer program is fed certain predetermined rules about how ... http://www.darrenwinters.com/an-introduction-to-technical-analysis-part-7-using-computers One of the tenets of Technical Analysis is that prices follow trends, either upwards, downwards or sideways (when the price is generally holding steady – a “flat” price). If investors spot an upward trend in a share, they may well try to jump on the band-wagon and buy that share, ... http://www.darrenwinters.com/introduction-to-technical-analysis-part-6-price-trends