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There are hundreds of thousands of market
participants buying and selling securities for a
wide variety of reasons, hope of gain, fear of
loss, tax consequences, short-covering, hedging,
stop-loss triggers, price target triggers,
fundamental analysis, technical analysis, broker
recommendations and a few dozen more. Trying to
figure out why participants
are buying and selling can be a daunting process.
IFE a breakthrough research software by AppXS
provides Chart patterns which help place all buying
and selling into perspective by consolidating the
forces of supply and demand into a concise picture
as a complete pictorial record of all trading, IFE
provide a framework to analyze the battle raging
between bulls and bears. More importantly, the IFE
chart patterns and technical analysis can help
determine who is winning the battle, allowing
traders and investors to position themselves
accordingly.
IFE
provides technical indicators a series of data
points that are derived by applying a formula to the
price data of a security. Price data includes any
combination of the open, high, low or close over a
period of time. Some indicators may use only the
closing prices, while others incorporate volume and
open interest into their formulas. The price data is
entered into the formula and a data point is
produced. For example, the average of 3 closing
prices is one data point ((41+43+43)/3=42.33).
However, one data point does not offer much
information and does not an indicator make. A series
of data points over a period of time is required to
create valid reference points to enable analysis.
IFE by creating a time series of data points
provides a comparison which helps make comparisons
between present and past levels. For analysis
purposes, technical indicators are usually shown in
a graphical form, an indicator can then be compared
with the corresponding price chart of the security.
The IFE technical indicator offers a different
perspective from which to analyze the price action.
Some, such as moving averages, are derived from
simple formulas and the mechanics are relatively
easy to understand. Others, such as Stochastic,
technical indicators can provide unique perspective
on the strength and direction of the
underlying price action.
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