EquitySmart - Market Direction

Hello Everyone,

This is Jose from EquitySmart.

A lot of times we hear traders and investors talking about how the market is rising or stressing about a dropping market. Regardless of your level of expertise in trading or investing, watching for market direction is very important to base our decisions on buying or selling shares.

Today we will talk about market direction using the S&P/ASX 200’s (ASX:XJO) 1 year graph.

Bullish market periods like the one represented in the trend channel on this graph represent ideal periods to buy shares, on a rising market most shares will rise with it.

On the other hand when the market is dropping, what’s likely to happen is that most shares you are holding today will be worth less tomorrow for as long as the market keeps dropping.

At the time of the publishing of this video we can see that the market is in an uptrend, a period were we would consider buying shares, yet taking a closer look we can see a lot of instability, or in more technical slang “Volatility”. When a market is volatile you may want to exert more caution on anything you are currently holding in your portfolio.

Learn about timing your entries and exits into the market and more by visiting us at www.equitysmart.com.au.

EquitySmart - Moving Averages

Hello Everyone,

This is Jose from EquitySmart.

Today we will explain Moving Averages and how to use them.

For today’s lesson we will use ASX:FLT - Flight Centre.

Moving Averages may sounds unfamiliar to some of you but the concept is very simple, a moving average represents the average price of a share over a certain period of time. For example, a 50 day moving average would give a reading by adding the closing price of a share over the last 50 trading days and dividing the total by 50, hence giving you the last reading on the graph. As new data becomes available the Moving Average reading keeps updating. This would be how a Simple Moving Average works.

In the graph below you can see how FLT’s price has fluctuated during the 2 year period,  yet a longer term investor would have considered buying this share as early as the 8th of OCT 2012  when the 50 day Moving Average is trending up and still has not considered closing out the position.

The main purpose of tracking a Moving Average is to identify the current price trend based on a short or longer period of time.  It is not uncommon for traders to use Moving Averages as low as 5, 12, 15 days and long term investors to look at a 200 day Moving Average.

The price of a share may bounce up and down a lot, sometimes leaving you scratching your head regarding what to do. On a daily basis the market price for the share will fluctuate significantly, depending on your strategies you probably don’t have to be too worried about daily price movements and can simplify your decision to stay in a trade or close out just by looking at the Moving Average line.

Learn how to apply Moving Averages and other technical charting indicators used by the professionals at www.equitysmart.com.au.

EquitySmart - Volume Charting

Hello Everyone,

This is Jose from EquitySmart.

Today we will explain how to use “Volume” and help us understand what this represents for the shares we are interested in.

Let’s start with the very basics, Volume in EquitySmart is represented in amount of dollars traded for the day, on that note volume is not positive or negative but it can help confirm the direction of the trend.

If a share is rising on heavy volume we can anticipate a significant rise in price and price support created at the beginning of that movement.

On the flipside, a share dropping on heavy volume may indicate a further significant drop in price and the breaking of a support level.

Heavy volume like that represented on this graph typically indicates an institutional purchase or sale of shares.

Within EquitySmart’s scan, the Market Volatility Analysis is used to pick up drastic moves in volume like this to point out shares that may represent a good opportunity to jump in when major buying or selling activity is occurring.

Find out more by visiting us at http://www.equitysmart.com.au.

EquitySmart - Candlestick Chart Introduction

Hello Everyone, 

This is Jose from EquitySmart.

Today we will explain the basics of reading a candlestick chart.

As we spoke on previous lessons a graph represents the price changes for a share during a certain period of time.

For this particular case we will be looking at a 6 month chart for TPM – TPG Telecom.

A candle chart gives much more information than a Line chart. The candles represent the price movements for a share on a given day.

The top wicks of the candles represent the highest price reached on that day.

The bottom tail of the candle represents the lowest price reached on that day for that share.

The bottom of the body of a green candle represents the open price

The top of the body of a green candle represents the close price.

The top of the body of a red candle represents the open price.

The bottom of the body of a red candle represents the close price for the day.

Candle charts can tell you how volatile a share is, nervousness and indecision of existing investors on that particular share can be identified by wild daily swings (spinning top on 2 May.

Identifying candle patterns can help you determine the trend ( trend line from the 23 May to 6 of June)  or change in trend of a particular stock (trend line 21 June to 8 July).

Find out more by visiting us at http://www.equitysmart.com.au.

EquitySmart - New Feature

Today saw the release of a new EquitySmart feature: Portfolio Reporting. 

This feature produces PDF records for their personal and taxation use. 

Just look for the PDF icon

in your Portfolio and Trade History pages.


If you have any questions don’t hesitate to contact our friendly support team.

EquitySmart Team!

EquitySmart - Line Charts Introduction

Hello everyone,

This is Jose from EquitySmart.

Today we will be learning how to use a line chart.

For this particular case we will be looking at a 1 year chart for Commonwealth Bank of Australia (ASX:CBA).

Each point on the chart represents the price the share closed for on that day.

By looking at this chart we can see CBA has had a nice steady rise........slowed down a bit........and starting to resume its pace.

You can get a wealth of information for any stock just by looking at its chart, think of each chart as its telling you a story for this company and the effects the industry.

By focusing on the graph as a whole, you can answer questions such as:

• Do people like this company?
• Has it fallen out of favour?
• How high can it go in a short period of time?

Find out this and more by visiting us at www.equitysmart.com.au.

Welcome to the EquitySmart Blog

Hi All,

A quick hello and welcome to EquitySmart's Offical Blog.

Stay tuned....

EquitySmart Team