AUDIO TUTORIALS
PPO Indicator WM% Percent Stock Charts |
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Stock Trading
If you trade stocks online, invest in stocks, trade the stock market, looking for advise on how to trade stocks effectively and looking for the tools to effectively trade the stock market. Including the right tools to research for investing, or day trading or swing trading. Including but not limited to penny stocks and high beta momentum then this tutorial is for you.
Percentage Price Oscillator--PPO
The Price Oscillator is an indicator based on the difference between two moving averages, (Moving averages
are one of the most popular and easy to use tools available to the technical analyst. They smooth a data series
and make it easier to spot trends, something that is especially helpful in volatile markets. They also form the
building blocks for many other technical indicators and overlays.) And is expressed as either a percentage or in
absolute terms.
The number of time periods can vary depending on user preference. For daily data, longer moving
averages might be preferred to filter out some of the randomness associated with daily prices. For weekly data,
which will have already filtered out some of the randomness, shorter moving averages may be deemed more
appropriate. In addition, a moving average of the ensuing plot can be overlaid to act as a trigger line, much like
is done with MACD. In our charts and commentary, we will use the abbreviation PPO to refer to the
Percentage Price Oscillator.
Williams %R--WM%
Developed by Larry Williams, Williams %R is a momentum indicator that works much like the Stochastic Oscillator.
It is especially popular for measuring overbought and oversold levels. The scale ranges from 0 to -100 with readings
from 0 to -20 considered overbought, and readings from -80 to -100 considered oversold.
William %R, sometimes referred to as %R, shows the relationship of the close relative to the high-low range over a set
period of time. The nearer the close is to the top of the range, the nearer to zero (higher) the indicator will be. The nearer
the close is to the bottom of the range, the nearer to -100 (lower) the indicator will be. If the close equals the high of the
high-low range, then the indicator will show 0 (the highest reading). If the close equals the low of the high-low range,
then the result will be -100 (the lowest reading).
It is important to remember that overbought does not necessarily imply time to sell and oversold does not necessarily
imply time to buy. A security can be in a downtrend, become oversold and remain oversold as the price continues to trend
lower. Once a security becomes overbought or oversold, traders should wait for a signal that a price reversal has occurred.
One method might be to wait for Williams %R to cross above or below -50 for confirmation. Price reversal confirmation can
also be accomplished by using other indicators or aspects of technical analysis in conjunction with Williams %R.
One method of using Williams %R might be to identify the underlying trend and then look for trading opportunities in the
direction of the trend. In an uptrend, traders may look to oversold readings to establish long positions. In a downtrend, traders
may look to overbought readings to establish short positions.
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