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ABC

Stock exchange lexicon letter M

: - abbreviation of Convergence Divergence

In French: convergence and divergence of moving average.

 

The is an indicator very much used in the technical analysis of the shares, it makes it possible to know if they are the purchasers or the salesmen who have the hand on the share.

The signal of purchase will intervene at the time when the salesmen will lose the hand with the profit of the purchasers.

 

For a 8,22,11

One uses MRS. of 8 and of 22, one makes following operation - what gives the line of fast .

Then one makes a of this fast , which gives the slow line of signal.

When the line of fast crosses the slow line it is the signal which the pressures purchasers/saleswomen changed. Gifts if the fast crosses while installing the slow line, that means that the purchasers take the top.

 

 

Example of according to the :

 

 

Arithmetic simple moving average: abbreviations: MM, MY, MY

 

This moving average is a simple average of the price of the share to the fence.

Arithmetic moving average, is very useful in the graphic analysis to know the tendency (bull or depression) of a share.

MY more used are the , , , , , , and .

Each average finds a significance, that depends on the analyzed share but also on you and your profile of investor.

- and : tendency short-term of the share (7 to 13 days), one buys when it goes up and one sells when it drops.

- and : tendency means-term of the share (20 to 30 days), one will supervise when the course of action crosses these averages.

- and : tendency long run of the share, when these averages install the course of action is in a phase well established bull, one will buy above during consolidation because they are of strong support.

- and : tendency very long run of the share.

Exponential moving average: abbreviations: , ME, MRS.

 

This moving average takes a greatter importance with the last securities, i.e. that for a the value of 20 days ago takes less importance than that of there are 10 and even less than that of the day before.

This MRS. will be thus more sensitive during abrupt change of exchange rate than the simple average.

These averages are used in the same way that the simple averages, but on shares which have to strongly vary.

 

: abbreviation:

The is a technical indicator which measures the acceleration of the tendency. Easy has to calculate, 13 for example is closing rates of the day minus closing rates of 13 days ago.

When goes up, one can remain in position then to sell when it stagnates or when it exceeds a threshold defines in advance.

One will supervise also the divergences between and the exchange rate:

On the graph the exchange rate drops on two hollows but 13 remains stable, which means that the salesmen had much more evil has cause a drop in the exchange rates on the second hollow than on the first.

Idem on the two peaks, on the second summit of the exchange rates, is even slightly lower, one will thus expect a fall.

 

Mid-courses:

The Mid-courses are firms medium-size; This society is not enough important to re-enter in index CAC 40.

The Small-courses are small and medium-size companies.

 

There exists an index, the 190 where is the 190 French firms which is under the 40 larger French firm of the CAC 40.