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Technical Analysis

Clients who focus more on "reading" graphs will certainly be interested in the "Technical Analysis" section. One benefit is that you are allowed to set up the parameters yourself and to select the duration of such graphs in days. Technical analysis is used to time stock purchases and sales and along with fundamental analysis it can provide a significant contribution to the success of your investment. It is mainly used for speculative and short-term stock trading.

"Technical Analysis" is available in the "Securities" section accessible from the main menu on the header of every e-Broker application page.

Technical analysis is primarily used by investors with more short-term investment goals.

Candlesticks

This graph is used to show every day as a candlestick composed of the information about the open and close prices as well as daily maximum and minimums whereby the color of the "candlestick" corresponds to the daily increase or decrease. This is frequently used in combination with Bollinger Bands in order to provide a more precise assessment of trading signals. This is used mainly to show the prices over tens of trading days.

Moving average (MA) (B/S indication)

Multi-day average price with buy/sell indication. You can select the 5, 10, 20, 50, 100 and 200 day average. The client can select the number of days based on the trend the client wants to follow: very short (5-13 days), short (14-25 days), short mid-term (26-49 days), mid-term (50-100 days), or long term (100-200 days). The buy/sell indication occurs after MA allocation. The longer the term selected, the more reliable the indication.

Exponential moving average (EMA) (B/S indication)

Multi-day exponential moving average with buy/sell indication. You can select the 5, 10, 20, 50, 100 and 200 day average. EMA is slightly more reliable than MA as more distant dates are given lesser weights in the calculation. The number of days is selected the same as for MA. The buy/sell indication occurs after EMA allocation. The longer the term selected, the more reliable the indication.

Bollinger bands (BB upper / mid / lower)

The band represents the limits of the sliding average. The width of the band is given by the volatility of the stock price. The more narrow the band, the lower the fluctuations in the price for the given title and vice versa. This typically follows a more significant change in prices after a longer period with lower volatility. The connection of the Percent B indicator precisely defines the current price compared to the width of the Bollinger Bands. Its value ranges from 0 to 1 and reflects the price inside the bands.

Moving average convergence divergence (MACD)

This is considered to be the most reliable indicator and is based on subtracting the long-term (26 day) sliding average from a short-term period average (12 day). The graph shows the trigger level (9 day MA), which generates buy and sell signals. The MACD indicator oscillates around zero. The buy/sell signal is generated when the MACD exceeds its trigger level and signal strength depends on the greater the MACD deviation from zero.

Money flow index (MFI)

This indicator is used to show the moment at which cash flows into or out of a stock. It works using price and volume. The indicator moves in a range from 20 to 80, whereby the closer it approaches the limit values, the higher the chance of a change in the price.

Rate of change (ROC)

The percent change in a price over a selected period. It is used to show 5 or 10 days percent changes. The indicator oscillates around zero and deviations from this value indicate changing trends. Crossing the 0 value is a signal that confirms a change in the trend.

Volume oscillator (PVO)

Difference between two MA volumes for a specific stock. This indicator is independent of the price of the stock. It is used to confirm a trend. A rising price + increasing volume = more buyers and additional growth is probable. A falling price + increasing volume = more sellers and a falling trend will continue.

Stochastic oscillator (SO)

This shows where the last close price is in terms of the price range. 0% corresponds to the five-day minimum and 100% to the maximum. The signal occurs when the value crosses the defined limit value of 20 / 80, 25 / 75 or 30 / 70.

Relative strength index (RSI)

This index uses the average positive and negative changes in the price for a specific selected period. This indicator moves within a range of 0-100, wherein a value over 70 indicates overbuying and a value under 30 indicates overselling on the market. The exact number value for the RSI is expressed in the header of the graph and different zones can be selected: 30 / 70, 20 / 80 (for volatile titles) and 40 / 60 (for indexes).


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