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Friday, February 3rd 2012 - 06:13:15 pm |
Glossary of Terms
(Some abbreviations are for communication on the Trading Room)
Williams %R: this is an indicator measuring overbought and oversold levels, similar to a stochastic oscillator. It was developed by Larry Williams and compares a stock's close to the high-low range over a certain period of time, usually 14 days. It is used to determine market entry and exit points. The Williams %R produces values from 0 to -100, a reading below - 80 (more negative) usually indicates a stock is oversold, while readings above - 20 suggests a stock is overbought. We use it as a leading indicator to the actual stock price
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