18 July, 2017
A common look back period is 14 days. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. The general interpretation of the ATR is the higher the ATR value, the higher the volatility. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.
Currently, Direxion Daily Emerging Markets Bear 3x Shares (EDZ)'s Williams Percent Range or 14 day Williams %R is resting at -90.28. This range falls on a scale between 0 and 100. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal. It uses a combination of price change data and time change data to identify potential changes in market sentiment, thereby exposing turning points. ADX is used to gauge trend strength but not trend direction. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time.
Direxion Daily Small Cap Bear 3X Shares (NYSE:TZA) was the recipient of unusually large options trading activity on Wednesday. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. In general, and ADX value from 0-25 would represent an absent or weak trend. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. Crunching the numbers and doing full analysis of stocks that have been trending down may help lead to some discoveries that could turn out to be highly valuable if and when the momentum shifts to the upside.
Direxion Daily Financial Bull 3x Shares seeks daily investment results of 300% of the price performance of the Russell 1000 Financial Services Index (the Index). Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.
Traders are paying renewed attention to shares of Direxion Daily Junior Gold Miners Idx Bear 3X Shs ETF (JDST). After a recent check, Direxion Daily Russia Bear 3X Shares's 14-day RSI is now at 35.34, the 7-day stands at 23.66, and the 3-day is sitting at 20.63.
The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. ADX is charted as a line with values ranging from 0 to 100. When the RSI line moves up, the stock may be experiencing strength.
Moving averages can help spot trends and price reversals. Many investors will keep a close eye on stocks that are trading near popular marks such as the 52-week high. The normal reading of a stock will fall in the range of 30 to 70. They may also be used to assist the trader figure out proper support and resistance levels for the stock.
