Extensive TA Terms & Definitions courtesy of Maxi

[thelibrarian]

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Every TA term i have ever heard of....explained

« Thread Started on Mar 28, 2010, 4:30pm by maxi »

www.onlinetradingconcepts.com/index.html

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Technical Indicators

A
* Accumulation Distribution
* Accumulative Swing Index
* Advance Decline Line
* Adaptive Moving Average
* Average Directional Movement Index (ADX)
* Andrews Pitchfork
* Arms Index (TRIN)
* Aroon Indicator and Oscillator
*
B
* Bollinger Bands
*
C
* Chaikin Oscillator
* Commodity Channel Index (CCI)
* Commodity Select Index
*
D
* Detrended Price Oscillator
* Directional Movement Index (DMI)
*
E
* Ease of Movement
* Elliott Wave
* Exponential Moving Average (EMA)
* Exponential Ribbons
*
F
* Fibonacci Retracements
* Fibonacci Arcs
* Fibonacci Fans
* Fibonacci Time Extensions

*
G
* Gann Theory
*
H
* Herrick Payoff Index
*
K
* Keltner Channel
*
L
* Linear Regression Channel
* Linear Regression Curve
* Linear Regression Line
*
M
* Moving Average Convergence Divergence (MACD)
* Moving Averages
* Market Thrust
* Mass Index
* McClellan Oscillator
* Momentum
* Money Flow Index (MFI)
* Moving Average Envelopes
*
O
* On Balance Volume (OBV)
* Open Interest
*
P
* Parabolic SAR
* Point and Figure Charting
* Price Channels
* Price Oscillator
* Price Volume Trend

*
R
* Rate of Change
* Relative Strength Index (RSI)
*
S
* Simple Moving Average
* Standard Error Bands
* Stochastic RSI
* Stochastics Fast and Slow
* Swing Index
*
T
* Time Series Forecast
* Triangular Moving Average
* Triple Exponential Average (TRIX)
* Typical Price (Pivot Point) Moving Average
*
U
* Ulcer Index
* Ultimate Oscillator
*
V
* VIX & VXN Volatility Index
* Volatility Indicator
* Volume
* Volume Accumulation
* Volume Oscillator
* Volume Rate of Change
*
W
* Weighted Moving Average
* Williams %R
*
Z
* Zig Zag



Candlestick Patterns


* Bullish Engulfing Pattern
* Bearish Engulfing Pattern
* Dark Cloud Cover
* Doji
* Dragonfly Doji
* Evening Star
* Gravestone Doji
* Hammer

* Hanging Man
* Harami
* Inverted Hammer
* Morning Star
* Piercing Pattern
* Shooting Star
* Tweezer Tops & Bottoms
* Windows





Chart Patterns


Double Bottom
Double Top
Flag
Gaps
Head & Shoulders
Support & Resistance
Triangles




Options Strategies


Call Option
Put Option
Bull Call Spread
Bear Put Spread
Call Ratio Backspread
Put Ratio Backspread
In / At / Out of money

[maxi]

Free cash flow yield is obtained by dividing free cash flow per share by the current price of each share. Generally lower ratios are associated with an unattractive investment and vice versa. Free cash flow takes into account capital expenditures and other ongoing costs associated with the day to day to functions of the business. In our view free cash flow yield is a better valuation metric then earnings yield because of the above factor

Levered free cash flow is the amount of cash available to stock holders after interest payments on debt are made. A company with a small amount of debt will only have to spend a modest amount of money on interest payments, which in turn means that there is more money to send to shareholders in the form of dividends and vice versa.

Operating cash flow is generally a better metric than earnings per share because a company can show positive net earnings and still not be able to properly service its debt; the cash flow is what pays the bills.

The payout ratio tells us what portion of the profit is being returned to investors. A pay out ratio over 100% indicates that the company is paying out more money to shareholders, then they are making; this situation cannot last forever. In general if the company has a high operating cash flow and access to capital markets, they can keep this going on for a while.

As companies usually only pay the portion of the debt that is coming due and not the whole debt, this technique/trick can technically be employed to maintain the dividend for sometime. If the payout ratio continues to increase, the situation warrants close monitoring as this cannot last forever; if your tolerance for risk is a low, look for similar companies with the same or higher yields, but with lower payout ratios.

Debt to Equity Ratio is found by dividing the company's total amount of long-term debt (debts with interest rates that have a maturity longer than one year) by the total amount of equity. A debt to equity ratio of 0.5 tells us that the company is using 50 cents of liabilities in addition to each $1 dollar of shareholders equity in the business. There is no fixed ideal number as it depends on the industry the company is in. However, in general a ratio under 1 is acceptable and ideally it should be in the 0.5-0.6 ranges.

Current Ratio is obtained by dividing the current assets by current liabilities. This ratio allows you to see if the company can pay its current debts without potentially jeopardizing their future earnings. Ideally the company should have a ratio of 1 or higher.

Price to cash flow ratio is obtained by dividing the share price by cash flow per share. It is a measure of the market's expectations of a company's future financial health. The effects of depreciation and other non cash factors are removed, and this makes it easier for investors to assess foreign companies in the same industry. This ratio also provides a measure of relative value like the price to earning's ratio.

Price to free cash flow is obtained by dividing the share price by free cash flow per share. Higher ratios are associated with more expensive companies and vice versa; lower ratios are generally more attractive. If a company generated 400 million in cash flow and then spent 100 million on capital expenditure, then its free flow is $300 million. If the share price is 100 and the free cash flow per share are $5, then company trades at 20 times-free cash flow. This ratio is also useful because it can be used as a comparison to the average within the industry; this gives you an idea of how the company you are interested in holds up to the other companies within the industry.

Interest coverage is usually calculated by dividing the earnings before interest and taxes for a period of 1 year by the interest expenses for the same time period. This ratio informs you of a company's ability to make its interest payments on its outstanding debt. Lower interest coverage ratios indicate that there is a larger debt burden on the company and vice versa. For example, if a company has an interest ratio of 11.8, this means that it covers interest expenses 11.8 times with operating profits.

Price to tangible book is obtained by dividing share price by tangible book value per share. The ratio gives investors some idea of whether they are paying too much for what would be left over if the company were to declare bankruptcy immediately. In general stocks that trade at higher price to tangible book value could leave investors facing a great percentage per share loss than those that trade at lower ratios. The price to tangible book value is theoretically the lowest possible price the stock would trade to

Quick ratio or acid test is obtained by adding cash and cash equivalents plus marketable securities and accounts receivable dividing them by current liabilities. It is a measure of a company's ability to use its quick assets (assets that can be sold of immediately at close to book value) to pay off its current liabilities immediately. A company with a quick ratio of less than 1 cannot pay back its current liabilities.