D
DAILY ABBREVIATED REPORT (DAR)
In order from the least detailed to the most detailed
reporting level, the daily reports are Abbreviated,
Summary, Detailed and Comprehensive.
The Daily Abbreviated Report (DAR) is the least
detailed report and may be delivered via email or downloaded.
The DAR is entirely plain ASCII
text and has no comma-separated variable
file attached. It is simply a list of issues
that meet a minimum number of new or current positive
developments.
The report includes a list showing the count of issues
with a TCPD count less than the cutoff value for the report.
Here is a DAR report from April 2006.
For more details please read How To Read
the DAR.
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DAILY COMPREHENSIVE REPORT (DCR)
In order from the least detailed to the most detailed
reporting level, the daily reports are Abbreviated,
Summary, Detailed and Comprehensive.
Currently in development, the Daily Comprehensive Report (DCR) will
be the most detailed of the four reports and is available for downloading.
The DCR will be a comma-separated
variable comma-separated variable
file that you can easily import into most spreadsheet programs.
The fields or items will include:
- Symbol Ticker Symbol (for example, GE)
- Total New Positive Developments (TNPD)
- Total Cumulative Positive Developments (TCPD)
Equals TNPD plus other positive developments that are still in
force
- The value of the ADX, for example,
“ADX=32”
- The value of the Aroon Oscillator,
for example, “Aroon(osc)=22”
- Volume The trading volume
for today
- SMA(50)(vol) The simple moving
average of volume for 50 periods
The Daily Daily Comprehensive Report will include the results of
specific technical analysis indicators TAI
that were not included in the Daily Summary Report.
List of all TAIs with expanded explanations.
Unlike the Daily Summary Report, and the Daily
Detail Report, all issues
are reported in the Daily Comprehensive Report, making it a very
large file.
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DAILY DETAIL REPORT (DDR)
In order from the least detailed to the most detailed
reporting level, the daily reports are Abbreviated,
Summary, Detailed and Comprehensive.
When completed, the DDR will be the second most detailed report.
The DDR will be a comma-separated variable CSV
file that you can easily import into most spreadsheet programs.
The first record is header information.
The fields or items will include:
- Symbol Ticker Symbol (for example, GE)
- Total New Positive Developments (TNPD)
- Total Cumulative Positive Developments (TCPD)
Equals TNPD plus other positive developments that are still in
force
- The value of the ADX, for example,
“ADX=32”
- The value of the Aroon Oscillator,
for example, “Aroon(osc)=22”
- The trading volume for today (Volume)
- SMA(50)(vol) The simple moving
average of volume for 50 periods
The Daily Detail Report includes the results
of specific technical analysis indicators TAI
that were not included in the Daily Summary Report.
List of all TAIs with expanded explanations.
As in the Daily Summary Report, not all issues
are reported in the Daily Detail Report. Before
being included in the Daily Detail Report, an issue
must pass through two sieves. They are:
1) SMA(20)(VOL)>40,000
The simple moving average of the volume over the last 20 periods
must exceed 40,000. This removes issues that are too thinly traded
for technical analysis indicators to be reliable.
2) TCPD> __?__ The issue
must have more than a set minimum number of total cumulative positive
developments. As of 5/1/2006 that minimum has not been determined.
The Daily Detail Report file will not be small.
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DAILY SUMMARY REPORT (DSR)
In order from the least detailed to the most detailed
reporting level, the daily reports are Abbreviated,
Summary, Detailed and Comprehensive.
When completed, the DSR will be the second least detailed report
and the most detailed report that can be sent by email.
The DSR will be a comma-separated
variable comma-separated variable
file that you can easily import into most spreadsheet programs.
The first record is header information.
Results of specific technical analysis indicators (TAIs)
will not be included in the Daily Summary Report
to keep it small enough to email. Not all issues
are reported.
Before being included in the Daily Summary Report,
an issue must pass through two sieves. They are:
1) SMA(20)(VOL)>40,000
The simple moving average of the volume over the last 20 periods
must exceed 40,000. This removes issues that are too thinly traded
for technical analysis indicators to be reliable.
2) TCPD> __?__ The issue
must have more than a set minimum number of total cumulative positive
developments. As of 5/1/06 that minimum has not been determined.
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DAY TRADING
The purchase and sale of an issue in the same day is
generally called day trading. Purchasing and selling in rapid succession
with holding periods measured in minutes is sometimes called ultra-short
term as well as being part of day trading.
See also Term.
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DEFINED OPERATION (DO)
A defined operation applies a technical
analysis tools's (or a TAI's)
operation or function to current and historical primary
data.
List of TAIs and links to
detailed explanations, including formulas and parameters
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DETRENDED PRICE OSCILLATOR (DPO)
The Detrended Price Oscillator (DPO), as its name
implies, tries to eliminate the trend
in prices. Detrended prices help to more easily identify short-term
cycles and overbought or
oversold levels. The DPO
removes the longer-term cycles from prices, thus making the shorter-term
cycles more visible. More about this
technical analysis indicator . . .
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DEPENDENT TECHNICAL ANALYSIS INDICATOR or DEPENDANT
TAI
This term describes the situation in which one TAI
depends on or requires the result of another. This can be true even
though each can independently produce positive
developments. For example, Bollinger
Bands require the computation of a Standard
Deviation.
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DIRECTIONAL MOVEMENT INDEX (DX or DMI)
Developed by Welles Wilder, the Directional Movement
Index (DMI sometimes abbreviated DX) indicates the direction of
a trend, but not its strength.
It is used with the Average Directional Movement Index (ADX),
another Wilder-developed TAI, which indicates the strength of a
trend, but not its direction. More about
the DMI indicator . . .
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DISTRIBUTION
A process that is the result of selling
issues in small lots with the
objective of minimizing a price increase. See also Accumulation.
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DIVERGENCE
A divergence occurs when two lines on a chart move
vertically in opposite directions.
Divergences between a stock’s price and one or more of its
indicators are common and often occur before a stock’s price
changes direction. Investors often look for divergences by comparing
a stock's price direction to the direction of its Relative Strength
Index (RSI), its MACD, its Stochastic
Oscillator or other indicators.
There are both positive and negative divergences. A positive divergence
occurs when an indicator moves higher at the same time the stock
is declining. A negative divergence occurs when an indicator moves
lower as the stock continues to rise.
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DRAWDOWN
The drawdown is the value of an investment after the
purchase and prior to sale that is below the purchase price. The
maximum drawdown (usually just called drawdown) is the lowest value
between purchase and sale that is below the purchase price.
For example
Purchase at $100, Sold at $130, Lowest value between purchase
and sale was $80
The maximum drawdown was -$20.
Sometimes drawdowns are referred to as percentages of purchase
price. In this example the drawdown would be –20%. Many times
the minus sign are not included and this would be a 20% drawdown.
The negative is inferred from the context.
If an investment never drops below the purchase price then the
purchase price was the lowest price between purchase and sale. The
drawdown is zero.
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E
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EDAYS
Elapsed Trading Days, the number of trading days between
purchase and sale. By definition when purchase and sale are the
same day then eDays=1 to avoid divide-by-zero concerns. A purchase
on 3/3/2006 and a sale on 3/6/2006 would be eDays=1 because the
intervening weekend days are not trading days.
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EXPONENTIAL MOVING AVERAGE (EMA)
The EMA considers more recent data to be more relevant
than older data and weights them accordingly. To calculate today’s
EMA, you need only these values: yesterday’s EMA, today’s
value (for example, today’s closing price), the number of
periods to average (n), and a number k called the exponential percentage,
but more commonly known as the smoothing constant.
k = 2 / ( n + 1)
The EMA is sometimes described by the smoothing constant and sometimes
by the equivalent number of periods to achieve that smoothing constant.
For example, referring to the formula above:
A 20% smoothing constant is the same as a 9 period smoothing
constant.
20% = 0.20 = 2 / (9 + 1)
As an example, we will calculate the exponential moving average
over two periods (n=2). With n = 2, k = 2 / (2 + 1) = 0.33.
Today’s EMA = (Today’s Value x k) + Yesterday’s
EMA x (1 – k)
Using a tabular format:
| A |
B |
C |
D |
E |
| Day |
Value |
Value x k |
Yesterday's EMA
x
1 - k |
Today's EMA
=C + D |
| 1 |
10 |
*1 |
*1 |
10 *1 |
| 2 |
12 |
3.96 |
6.7 *2 |
10.66 *3 |
| 3 |
14 |
4.62 |
7.14 |
11.76 |
| 4 |
16 |
5.28 |
7.88 |
13.16 |
| 5 |
12 |
3.96 |
8.82 |
12.78 |
*1 = because we don’t have any earlier values the
EMA is defined to be the value for that period.
*2 = 10 x (1 - 0.33) = 10 * 0.67 = 6.7
*3 = (12 x 0.33) + (10 x (1 – 0.33) = 3.96 + 6.7
= 10.66
Notice that we don’t have to sum the values for the previous
periods. All we need is today’s value, yesterday’s EMA,
and k (which is defined using n). If today is the first day and
there is no previous EMA then today’s EMA = Today’s
value.
There are other moving averages. See Moving
Averages.
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EXPONENTIAL MOVING AVERAGE — FIVE PERIOD
The Exponential Moving Average (EMA)
(above) is one of a number of smoothing techniques. The EMA
is an excellent compromise between the weighted
moving average, which tends to be overly sensitive, and the
simple moving average, which tends
to be too sluggish. It is also one of the simplest moving averages
to calculate, requiring only today’s raw data and yesterday’s EMA.
As indicated by the title of this TAI, we use n (the total
number of periods) = 5. More about this
technical analysis indicator . . .
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EXTENSION
A specific construction used to allow comparison
of two sets of gain% and eDays. See How
To Read Track Record for the complete explanation.
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F
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FRACTAL EXIT POINTS (FEP)
FEPs can be used to set stop losses in a manner completely
unrelated to the mathematical machinations of percentage of loss
and multiples of ATR. FEP are determined
by market movement, specifically the lows over a minimum of five
days. More information and examples. |
