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Sunday, March 29, 2009

Bull Bear Ratio Defined

When I post about possible breakouts and rate the stocks on Bull/Bear ratio I am talking about specific technical analysis signals from Advanced Analyzer that indicate possible bullish and bearish stocks. The Bull:Bear Ratio is a quick report of up to 13 popular indicators and several other indicators which are offshoots of the major indicators. The report shows which indicators are generating Bullish or Bearish signals for a selected stock. Here are the following signals and definitions:

MA (10) is Bullish/Bearish where: MA is Moving Average and 10 day average crosses up above a longer term average.

MA (50) is Bullish/Bearish where: MA is Moving Average and 50 day average crosses up above a longer term average.

Strength Meter is Green Yellow or Red where: green is when an individual security is up 10% or more in the last 2 weeks, this is a bullish signal meaning the security is trending up, yellow when a stock or security trades between a lower and an upper resistance level, this means the security is range bound which is neither bullish or bearish, and red is when an individual security is down 10% or more in the last 2 weeks, this is a bearish signal meaning the security is trending down.

Price Break (3) is Bullish/Bearish where: 3 is number of days (most popular price break used), and Price Break is a visual pattern made up of "blocks." The blocks are created
using a stock's closing price to highlight trends and reversals. An arbitrary starting point is selected at some
point in the past and is designated as the reversal point. When a stock's closing price
rises below the reversal point, a green block is added. When a stock's closing price falls
below the reversal point, a red block is added. The reversal point is a stock's closing
price in the fourth most current block, so it acts like a moving stop limit. As green blocks
are added, the reversal point keeps rising and vice versa for red blocks. (Advanced Analyzer manual)

3 Higher Highs/Lower Lows where: 3 is the number of trading days, and higher highs means the stock has traded at its 52 week high 3 days in a row a bullish signal, and lower lows means that the stock has traded at its 52 week low 3 days in a row a bearish signal.

CVAD is Bullish/Bearish where: CVAD is Chaikin's Volatility indicator and it compares the spread between a security's high and
low prices. It quantifies volatility as a widening of the range between the high and the low price (Advanced Analyzer manual).

PROC is Bullish/Bearish where: PROC is Price Rate-of-Change, and it is a technical analysis tool that measures the rate of change for the stock or the strength of momentum. The formula is (today's closing price-closing price in period(s) X)/(closing price in period(s) X).

OBV is Bullish/Bearish where: OBV is On-Balance Volume. This is a technical analysis tool that relates volume to price. Shows when an individual security is being bought or sold heavily or lightly. Heavy buying is bullish, and heavy selling is bearish, light selling after a massive gain is bullish, and light buying after massive loss is a bearish signal.

Breakout Bull/Bear where: breakout means a stock is making a new two-month high/low with today's trading range larger than any of the nine previous trading days.

RSI is Bullish/Bearish where: RSI is Relative Strength Index and is a measure of how overbought/oversold the stock is. When a stock becomes overbought it is a bearish signal for stocks, and when a stock becomes oversold it is a bullish signal for stocks.

MACD is Bullish/Bearish where: MACD is Moving Average Convergence/Divergence. Measures the relationship between two moving averages. The MACD is calculated by taking the difference of the 26-day EMA (exponential moving average) and the 12-day EMA. A nine-day EMA of the MACD is then used as a signal line, and is plotted over the MACD, functioning as an indicator for buy and sell signals. When the MACD falls below the 9 day EMA line it is a bearish signal, and when it crosses above the line it is a bullish signal.

MACD (weekly) is Bullish/Bearish Similar to MACD but taking weekly moving averages instead of daily moving average.

Stochastic(5) is Bullish/Bearish where: The stochastic oscillator compares where a security's price has closed relative to its price range over a specifically identified period of time. In an upwardly trending market, prices tend to close near their high, and during a downward trending market, prices tend to close near their low (Advanced Analyzer manual). Where 5 is the number of days which is the specifically identified period of time. 5 is the most common period of time.

Other indicators included in Bull/Bear ratios that are offshoots of other indicators:

MA(10) crossed up/down MA(50) where: MA is moving average, up is a bullish signal, and down is a bearish signal

Other crossing indicators similar to the indicator above include: MACD Crossed up*/down**, MA (10) Crossed up*/down**, and MA (50) Crossed up*/down**. Where: * indicates a Bullish signal and ** indicates a Bearish Signal.






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3 comments:

Anonymous said...

where can i gain access to the Advanced Analyzer?

Forest said...

thanks so much!

Option Maestro said...

I have Advanced Analyzer because I am a TD Ameritrade Apex client. I get it for free, otherwise I believe it is $20 a month for TD Ameritrade users.

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