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FAQ

 

#Using the New Yahoo! Finance Charts

http://biz.yahoo.com/charts/


 

#2 Technical Indicators For Charts

Yahoo! Finance Charts enable you to conduct a more thorough technical analysis utilizing the TECHNICAL INDICATORS functionality in your charts. Technical indicators are tools used by market technicians to determine trend, market sentiment and various buy and sell signals, and your Yahoo! Finance Charts offer a suite of 13 customizable technical indicators.

http://biz.yahoo.com/charts/guide10.html

Oscillating indicators are those that move back and forth, based on the price movement of the equity, within a predetermined range. Because oscillating indicators do not move in sync with the price movement of a security, they are usually plotted below the price chart.
Using Yahoo! Finance Charts, you have access to seven trending indicators:
Money Flow Index (MFI)
MACD
Rate of Change (ROC)
Relative Strength Index (RSI)
Slow Stochastic
Fast Stochastic
Williams %R

Volume-based indicators are those that—unlike trending and oscillating indicators—are based on volume rather than price. Because volume-based indicators are not derived from the price movement of a security, they are usually plotted below the price chart.
Using Yahoo! Finance Charts, you have access to two volume-based indicators:
Volume
Volume + MA



 

#3 Moving Average Convergence Divergence (MACD)

The moving average convergence divergence, or MACD, is an oscillating indicator, but it does not move within a pre-defined range. The MACD is based on the relationship between two price-based moving averages. It is also plotted as both two lines and a histogram. The direction and height of the histogram is based on the direction and separation of the two MACD lines.
There are two popular setups for the MACD. The first is based on calculations using three time frames: a 26-period, a 12-period, and a 9-period time frame. The second is based on calculations using three different time frames: a 17-period, an 8-period, and a 9-period time frame. The MACD based on longer time frames is less volatile than the MACD based on shorter time frames and will give fewer buy and sell signals.
The most common buy and sell signals generated by the MACD are crossovers. A MACD crossover occurs when the two MACD lines cross. You can see this illustrated by both the MACD lines and the histogram, as on the Hovnanian Enterprises (HOV) chart. When the lines cross, the histogram will also cross the flat, horizontal signal line. When the lines and histogram cross up, this is a simple buy signal. When the lines and histogram cross down, this is a simple sell signal.

http://biz.yahoo.com/charts/guide15.html

 

 

#4 Relative Strength Index

The relative strength index, or RSI, is an oscillating indicator much like the rate of change indicator except that it operates within a range-bound area between 0 and 100. As the RSI line moves higher, you know the price is enjoying increased strength. As the RSI line moves lower, you know the price is suffering from a lack of strength.
You can choose the time period for the indicator when you plot it on your chart, but keep in mind that the shorter the time period, the more volatile the indicator will be.

When using the RSI, you will want to watch for those times when the line rises above 70 or below 30
. When the RSI line is in one of these areas, it indicates the price is overextended and will be prone to reversal or stagnation in the near future. Some of the most opportune times to buy or sell when using the RSI is when you see the line coming out of one of these areas. For example, if the RSI line has dropped below 30 and is turning around to move back above 30—as it was in August on the Citigroup (C) chart—this may be a good time to buy.

 

 

http://biz.yahoo.com/charts/guide18.html


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