indicator

BAR AND LINE CHART

In the daily bar chart, each day's activity is represented by a single vertical line. The top of the line is the day's high ; the bottom marks the day's low. The closing price is indicated by the horizontal tick - mark extending to the right of the vertical line.

MOVING AVERAGES

Moving average is calculated by adding the closing price of the index for a number of time periods and then dividing this total by the number of time priods. The result is the average price of the index over the time period. The 5/10 day moving average provides market trend signals when they crosses each other.

A buy signal is given when the five day moving average cuts above the ten day moving average and a sell signal is triggered when the five day moving average cuts below the ten day moving average line.

STOCHASTIC

The stochastic have two lines, and their calculations are based on the rate of changes in the daily high, low and close.
The concept of stochastic is based on the tendency that as prices move higher, the daily close will be closer to the highs of the daily range.
Semilarly as prices decrease, the daily closing price tends to accumulate close to the lows of the daily trading range.   Stochastic tells you when the market has gone overbought or oversold conditions ; divergence to warn about a potential top or bottom and provides the buy/sell signals.
The stochastic values is a moving average of the raw value and is plotted on a scale from zero percent to one hundred percent. Stochastic usually provides good buy and sell signals. For a sell signal wait for both the oscillators to rise into the percent line and falls below this line. An opposite parttern is followed for a buying signal. When the oscillator has dropped below the 20 percent line and rises above it, a buy signal is generated.

RELATIVE STRENGTH INDEX [ RSI ]

The rsi is an oscillator used to interpret the internal strength and to measure the directional price movement of the bar - chart based on the changes in the daily closing price.
The rsi is alsoi used to identify price tops and bottoms by looking at the 30% point and the 70% point mark on the indicator scale. Overbought and oversold positions are indicated when the index goes above or below the upper and lower dotted lines.
A popular way of analysing the rsi is to look for divergence in which the index is making a new high, but the rsi is falling to surpass it's previous high. Divergence normally signals an impending trend - reversal.

THE MOMENTUM INDEX

This line plots the short / medium - term direction of the market and may be interpreted as follows;
    a.   The market is in an upward direction when the line closes above the neutral straight line and is in a downward direction when the reverse is the case.

    b.   A loss in the momentum of the line [ divergence ], when prices are still heading up or down normally indicates that the market could expect a technical correction or a reversal in the near future.