Direct Broking Logo
  Home  About us  Our services  Our rates  Our people  Contact us 

Educational Articles

 
    17/04/2014 04:11 p.m. 
Client Login
Get started
Introduce me to share trading
What do I need to know before starting
Rates and conditions
FAQ's
Open an Account
Quick Quote
Trading
NZ/AU Markets   
International Markets   
Exchange Traded Funds   
NZ Fixed interest   
One-off Sale (non-clients)
Investing
New Issues
Government Kiwi Bonds
UDC Term Investments
ANZ Bank Investment & Insurance
Currencies & Cash
Online Multi-Currency Account   
Client Services
Notice board
Newsletter Registration
Download forms
Glossary
Tutorials and Education
Connect to Sharesight
Suggested Websites
FAQ
Feedback

QUICK QUOTE – SUPER CHARTS


This page extends the standard historic charting functions and is the perfect function to help you get more out of your chart-based research.

To find the Super Charts function, enter a stock code into the “Quick Quote” field and then change the “View” to Charts.
From here you’ll see the red “Super Charts…” button, as circled in the example below:






BASICS ANALYSIS:

Security Code: Select the market (NZ, AU, US or UK) and the stock code

Period: Select the time period you wish to view the stock price over

Adjusted: If you tick this box the price will be adjusted for Capital Reconstructions. Click here for more info

Chart Style: A choice of five styles

Volume Scale: A choice of two styles

Compare Security: Handy if you wish to compare the progress of FPH versus FPA or TEL.NZ versus TEL.AU

Compare Index: Also handy if you wish to compare the progress of TEL versus the NZX 50


TECHNICAL ANALYSIS

Moving Averages (MA): Used to gain a simplified view of progress and momentum. This function allows up to two moving averages to be charted.

Bollinger Bands: Used to compare volatility.

Indicators: Relative Strength (view strength of stock), Stochastic (compare closing price against price range) and MACD (trend and momentum).


HOW CAN TECHNICAL ANALYSIS HELP ME TO TRADE?


Moving Averages (MA)

In the graph below you can see the progress of TEL.NZ over a 1 month period.

The orange line is the MA and demonstrates the average trend of TEL.NZ.

The MA “smoothes” over the various peaks and troughs that have been experienced to give a clearer idea of movement.

More information on Moving Averages at StockCharts.com






Bollinger Bands

In the graph below you can see the progress of TEL.NZ over a 3 month period.

The light blue lines are the Bollinger Bands.

They represent areas of support (lows) and resistance (highs) and are used to compare volatility.

The Bollinger Bands are plotted to provide a high and a low price relative to a moving average, prompting some traders to buy when the stock hits the lower Band (a low price) and sell when the stock hits the upper Band (a high price).

More information on Bollinger Bands at StockCharts.com





Relative Strength Index (RSI)

In the graph below you can see the progress of TEL.NZ over a 3 month period.

The blue line at the bottom of the graph is the Relative Strength Index, over 14 days, and illustrates the strength of the price of TEL.NZ

There are two red dotted lines above and below the RSI line. The basic theory behind RSI analysis is that when the RSI line hits the upper dotted line, it’s time to sell. If the RSI line hits the lower dotted line, it’s time to buy.

More information on Relative Strength Index at StockCharts.com





Stochastic Oscillation


In the graph below you can see the progress of TEL.NZ over a 3 month period.

The blue line at the bottom of the graph is the Stochastic momentum over a 14 day period.

The theory here is very similar to that of the RSI – sell when the stock hits the upper line, buy when the stock hits the lower line. The difference is that the Stochastic line measures the price of a security relative to the high/low range over period of time.

More information on Stochastic Oscillation at StockCharts.com





Moving Average Convergence Divergence (MACD)


In the graph below you can see the progress of TEL.NZ over a 3 month period.

The blue and green lines at the bottom of the graph are two MACD lines and the red bars are the MACD Histogram (the difference between blue and green lines).

MACD is used to display trend and momentum characteristics.

More information on MACD at StockCharts.com



© Direct Broking (part of ANZ New Zealand Securities Limited) 2005.
Help | Site map |  Terms & Conditions  | Security | Disclaimer