How to Use Interactive Stock Graphs: An Introduction
by Prof. Richard Einer Peterson
College of Business Administration
University of Hawaii
October 22, 1977
Updated February 9, 1999
email:
rpeterso@hawaii.edu
The following example is based on the Interactive Stock Graphing capability of
bigcharts.com
Six graphs will be presented; all show the stock's daily closing price, a large chart size was chosen, and the stock involved is General Motors (ticker symbol of GM). Graphs 1-3 have a 2-year time frame and a "Lower Indicator" of the P/E (Price/Earnings)
Ratio.
The graph of GM stock price is compared to the stock price of Ford (ticker symbol of F) in graph #1, to the DJIA (Dow Jones Industrial Average) in graph #2, and to the 30-day SMA (Simple Moving Average) in graph #3.
Graphs 4-6 have a 3-month time frame and a "Lower Indicator" of the Up/Down Ratio . Graph #4 compares GM to Ford, graph #5 compares GM to the DJIA, and graph #6 compares GM to the 9-day SMA.
Links to the six graphs are given below
Graph
# 1
Graph
# 2
Graph
# 3
Graph
# 4
Graph
# 5
Graph
# 6
DETAILED INSTRUCTIONS
Go to http://www.bigcharts.com
In the "Enter Symbol or Keywords" box, type GM and then click on the "interactive chart" box. The righ-hand frame shows a one-year chart of GM. The left-hand frame has the following clickables:
- draw chart
- time frame
- Time**. One-year is the default choice; some other choices are 3 months and 2 years.
- Frequency**. Daily is the default choice; other choices also available.
- CATEGORIES MARKED WITH ** ARE CLICKABLE
- compare to
- Index**. Can choose S &P 500, DJIA, NASDAQ, All, None.
- Symbol(s)**. Can type F for Ford, or can choose any other company.
- indicators
- Moving Averages**
- Upper Indicators**
- Lower Indicators**
- chart style
- Price Display**. Many choices; can choose Close (closing price)
- Chart Background**. Can pick Default, Three Tone or several other choices.
- Chart Size**. Can choose Small, Medium, or Large.
- trade online
- store settings
- clear settings
COMPLETE SET OF AVAILABLE CHOICES
1. If click time frame, then Time:
- 1 month
- 2 months
- 3 months
- 6 months
- YTD (year-to-date)
- 1 year
- 2 years
- 3 years
- 4 years
- 5 years
- 1 decade
- All Data
2. If click time frame, then Frequency
- Daily
- Weekly
- Monthly
- Quarterly
- Yearly
3. If click compare to, then Index
- None
- S&P 500
- DJIA
- NASDAQ
- All
4. If click compare to, then Symbol
- You enter ticker symbol of your choice
5. If click indicators, then Moving Average
- None
- SMA (Simple Moving Average)
- SMA (2 Line)
- SMA (3-Line)
- EMA (Exponential Moving Average)
- EMA (2-Line)
- EMA (3-Line)
6. If click indicators, then Upper Indicators
- None
- MA Envelope
- Bollinger Bands
- Parabolic SAR
- Volume by Price
- Price Channel
- Show Splits
- Show Earnings
- Show Dividends
- Show All Events
- A/D Line (Advance-Decline Line)
7. If click indicators, then Lower Indicators
- Volume+
- RSI (Relative Strength Index)
- MACD
- OBV
- Fast Stochastic
- Slow Stochastic
- ROC (Rate of Change)
- Williams %R
- Money Flow
- Vol Accumulation
- Volatility Fast
- Volatility Slow
- Momentum
- Ult Oscillator
- Rolling EPS
- P/E Ratio
- P/E Range
- Rolling Dividend Yield
LINKS TO DEFINITIONS OF TERMS USED
- Time
- time frame: Time
- Frequency
- time frame: Frequency
- Index
- compare to: Index
- Symbol(s)
- compare to: Symbol(s)
- Moving Averages
- indicators: Moving Averages
- The traditional interpretation of moving averages focuses on price movement relative to the
average itself. Investors are typically bullish when the price moves above its moving
average and bearish when the price falls below its moving average.
- Moving Averages are also very useful in smoothing noisy data. Applying a 200-day moving
average, for example, will give you a clear view of a security's long-term historical trend.
- Upper Indicators
- indicators: Upper Indicators
- The A/D Line is the most widely used indicator measuring market breadth. It represents a
cumulative total of the number of stocks advancing vs. the number of stocks declining.
When the A/D Line rises it means that more stocks are rising than declining (and vice
versa).
- Lower Indicators
- indicators: Lower Indicators
- The Upside/Downside Ratio shows the relationship between the volume of advancing issues
and the volume of declining issues. Upside volume is simply the sum of all volume
associated with stocks that closed up in price while downside volume is the sum of all
volume associated with stocks that closed down in price.
- The Breadth Advance/Decline Indicator is the number of advancing issues divided by the
total number of both advancing and declining issues. Readings above 0.5 are considered
"Bullish" while readings below 0.5 are considered "Bearish."
- The Noncumulative (Daily) A/D Line is calculated by subtracting the number of declining
issues from the number of advancing issues and then dividing that figure the total number of
issues traded.
(Advancing Issues - Declining Issues) / (Total Number of Issues Traded)
Generally, values above 0.25 are considered "Bullish" while values below -0.25 are
considered "Bearish."
- Price Display
- chart style: Price Display
- Chart Background
- chart style: Chart Background
- Chart Size
- chart style: Chart Size
LINK TO COMPANY INFORMATION, STOCK CHARTS, AND
EDGAR FILINGS
LINK TO STOCK MARKET INDICATORS
STOCK MARKET INDICATORS: DEFINITIONS
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