MailBag May 29, 2009 at 12:51 PM
Q: How can you show the difference between the closing price and the moving average? A: The Percentage Price Oscillator (PPO) is a percentage version of MACD. In this example, I will show how to use the PPO to show the percentage difference between the closing price and a moving average. In the indicator settings below, we can see a 40-week exponential moving average along with the Percentage Price Oscillator (PPO) set at (1,40,1). This PPO setting will show the percentage difference between the 1-period EMA and the 40-period EMA. A 1-period EMA is the same as the closing price for a Read More
MailBag May 22, 2009 at 05:56 AM
How do I get extra space at the end of the chart? Answer: Under chart attributes, Sharpcharts users can apply the “extra bars” function to add empty space to the end of their charts. For daily charts, 30 bars will add the equivalent of 30 trading days or around 6 weeks. For weekly charts, 30 bars will add 30 weeks to the end of the chart. Adding time is helpful for developing future scenarios based on both price and time. On the chart example below, 30 days extends to early July. Read More
MailBag May 16, 2009 at 12:04 PM
With many major indices, ETFs and stocks up substantially since early March, the prospects of a pullback or consolidation are increasing. Within Sharpcharts, the Fibonacci Retracements Tool can be applied to estimate potential retracement levels after and advance or a decline. Moreover, there is more than one way to used the Fibonacci Retracements Tool. A normal CLICK of the Fibonacci Retracements Tool icon allows users to draw the 38.2%, 50% and 61.8% retracements with price levels. You can remove these levels by holding the CTRL key and clicking on the top or bottom lines of the Read More
MailBag May 09, 2009 at 06:11 AM
Q: Which is a better indicator to determine oversold or overbought conditions - RSI or CCI?A: This largely depends on your trading style and preferences. CCI and RSI are both momentum oscillators that show similar information (i.e. momentum). Used with their standard settings, CCI(20) will be more sensitive than RSI(14). On the QQQQ chart, notice that CCI(20) became overbought and oversold numerous times over the last five months. In contrast, RSI(14) only became overbought once in early May. Despite such a glaring difference, RSI can be tweaked to look more like CCI(20). The bottom Read More
