GOLDEN ACADEMY

Moving Average (MA) is commonly known as Moving Average line or MA line due to its linear form. MA refers to the sum of closing prices divided to a certain period by number of days. For example, MA5 means dividing the sum of closing prices in 5 days by 5. 

The concept of Moving Average is developed by Joseph E. Granville, a famous American investment expert, in the mid-20^th century. The theory is one of the most commonly used technical indicators nowadays. Suggesting investors to acknowledge current trends, predict future trends and discover reversing trends after overextension.

Bollinger Bands (BOLL) is a tool invented by John Bollinger, which uses statistical principles to determine the standard deviation and reliable interval of stock prices, thus determining the price range volatility and trends. As it shows safe high and low prices of stock prices via wave bands, hence the name Bollinger Bands. Upper and lower limits is not fixed and varies with volatility of stock prices. Like Mike Base Indicator, BOLL is a channel indicator. With stock prices changing within the interval between upper limit and lower limit, the width of the band varies with the range of volatility; greater range of volatility indicates wider band while smaller fluctuation of stock prices results in narrower band.

Moving Average Convergence and Divergence (MACD) is developed from Double Exponential Moving Average, with the faster Exponential Moving Average (EMA) minus the slower EMA. MACD is similar to Double Exponential Moving Average in definition but it is more easy to read. Growth of MACD from negative to positive is the signal of buying, while the decline from positive to negative is the signal of selling. Larger range of MACD changes indicates a rapidly increasing gap between the faster EMA and the slower EMA, suggesting a significant volatility in the market.

KDJ, also known as stochastic oscillator, is a newer and practical technical analyzing indicator. KDJ first applied to analysis of the futures market and then widely used to analyze medium and short-term trends of the stock market. It is currently the most commonly used technical analysis tool in the futures and stock market. 

KDJ is generally applied to the statistical system of stock analysis, using the ratio among the highest price and the lowest price in a certain period of time (usually 9 days, 9 weeks, etc.) as well as the closing price of the last calculation period to determine the Row Stochastic Value (RSV) of the last calculation period based on statistical principles before calculating K, D and J values in accordance with the method of Exponential Moving Average, then creating a curve chart to analyze the trends of stock.

Relative Strength Index (RSI) is the first applied in futures trading. People then discovered after massive graphic technical analysis that the theory and practice of RSI is particularly applicable to short-term investment on the stock market. Therefore, it is applied to measure the ups and downs of stocks and analysis. In general, RSI is to calculate the power balance between the buyer and the seller via digital calculations. For example, 100 people facing 1 product, if more than 50 people intend to buy and compete on rising price, the product price then will rise. On the other hand, if more than 50 people intend to sell, the price thereof will definitely go down. 

According to the theory of RSI, any big rises or falls of market price vary between 0 and 100, in normal cases, vary between 30 and 70. If the index reaches 80 or even 90, it is considered as overbought, naturally the market price will go down. If the index is lower than 30, it is considered oversold and market price will go up.

The Elliott Wave Theory is a form of stock technical analysis. The theory believes that market trend is repeating a pattern continuously consisting of 5 impulse waves and 3 corrective waves in each cycle. 

The theory divides different trends into 9 types, with the longest Grand Super Cycle lasting for 200 years and the Subminuette only covers trends within several hours. Regardless of the scale of the trend, it is constant that each cycle consists of 8 waves.

Gann Theory is a unique analysis method and trend detecting theory developed by Willian D. Gann, a master in investment, based on the comprehensive application of mathematics, geometry, religion, and astronomy studies, combined with his own performance and valuable experiences in the stock and futures market. Gann Theory believes that natural laws in the universe exist in the stock and the futures market. Trends of market price are not unsystematic but predictable by mathematical methods. The essence of such theory is to establish of strict trading order in a seemingly unsystematic market, which helps detects when and in where the price will go up.

CCI Indicator is a rather new technical indicator developed by Donald Lambert, a US stock market analyst in the 1980s. It is first applied in the judgment of the futures market and then widely used in research and judgement of the stock market. 

Different from various technical analysis indicators invented solely based on the closing price, opening price, highest price, or lowest price of stock, CCI is a unique technical analysis indicator developed based on statistical principles, introducing the concept of deviation between price and the average range of stock price in a certain period, and emphasizing the significance of the average absolute deviation of stock price in the stock market technical analysis. It is a relatively unique technical analysis indicator.

CCI is specifically designed to measure whether the stock price is outside normal range but with its own uniqueness compared to another overbought and oversold indicators. Most overbought and oversold indicator such as KDJ and W%R has a range of 0-100, making them more applicable to analysis and judgement of normal market condition. However, the stock price trends might experience dramatic rises and falls in the short term, thus such indicators might lose instructive significance. On the other hand, CCI concerns fluctuation between positive infinity and negative infinity, without losing significance at any time. Therefore, it helps analyze and predict the market condition, particularly in case of abnormal conditions concerning dramatic rises and falls in the short term.

Is a comprehensive indicator of a moving average calculated by using the weighted average method of several moving averages of different period of time. As an actual improvement of the Moving Average (MA) indicator, Bull And Bear Index (BBI) still need to be continuously improved to keep developing.

1. When stock prices fall below BBI from the closing price in the high price interval: Signal to sell.

2. When Stock prices rise beyond BBI from the closing price in the low price interval: Signal to buy.

3. BBI increases upward with stock price above BBI: Bullish trends, continue to hold position is suggested.

4. BBI decreases downward with stock price below BBI: Bearish trends, not suggested to buy.