A glossary of commonly used terms on the blog and trading.
Advance Decline The advance decline line for the Straits Times Index. This is a figure composed of a net sum of the number of advancing stocks minus the number of declining stocks at any given moment in each of the two respective markets.
20MAThe twenty period moving average, often dicussed in the context of daily chart. All moving averages discussed in the blog are SIMPLE and not EXPONENTIAL.
50MA Fifty period moving average
200MA Two hundred period moving average, a key level especially on longer timeframes that many institutions trade against.
CFD Contract For Difference( click HERE for more info)
Inside Day A day in which the entire range of price action from lows to highs is within or inside the prior day’s range. This pattern in candlestick terms is called “harami” and is a sign of a small pause in the prevailing trend before continuing onward rather than reversing.
Long Buy first, sell later
Pivot Points Below are the calculations for the floor trader pivots. The high, low and close used in the calculation is from the prior day’s values. “R” means Resistance and “S” means Support. But sometimes i also use S1, S2... or R1, R2... in my blog just to indicate the various support and resistance level from horizontal line or MA or Gap other than pivot points.
PIVOT = (High + Close + Low)/3
R3 = High + 2(Pivot – Low)
R2 = Pivot + (R1 – S1)
R1 = (2*Pivot) – Low
S1 = (2*Pivot) – High
S2 = Pivot – (R1 – S1)
S3 = Low – 2(Hi – Pivot)
Short Sell first, buy back later
