Quick Reference

This is just a quick reference on some confusing terminologies used in the website especially the technical indicators and the fundamental or guru strategies name. Candlesticks, Point and Figure, and other Technical Indicators might look familiar to you already. Below is a quick reference:

Guru Strategies

Guru Field NameGuru MethodologyComments
Growth Value Growth/Value Investor Based on the book by James P. OShaughnessy
PEGrowth P/E Growth Investor Based on the book by Peter Lynch
Sm.CapGrowth Small Cap Growth Investor Based on the book by the Motley Fool
Validea Validea Momentum Investor Based on the book by Validea Momentum Strategy
Value Value Investor Based on the book by Benjamin Graham
Price Sales Price/Sales Investor Based on the book by Kenneth Fisher
Contrarian Contrarian Investor Based lon the book by David Dreman
Growth Growth Investor Based on the book by Martin Zweig

CandleStick Patterns

Indicator/PatternDescriptionComments
Engulfing Pattern A reversal pattern that can be bearish or bullish depending upon whether it is in an uptrend or downtrend. The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's body. CSEngulfing(bullish);CSBearEngulfing
Harami A two day pattern that has a small body day completely contained within the range of the previous body, and is the opposite color. CSBullishHarami;CSBearishHarami
Morning Star A three day bullish reversal pattern consisting of three candlesticks - a long-bodied black candle extending the current downtrend, a short middle candle that gapped down on the open, and a long-bodied white candle that gapped up on the open and closed above the midpoint of the body of the first day. CSMorningStar
Piercing Line A bullish two day reversal pattern. The first day, in a downtrend, is a long black day. The next day opens at a new low, then closes above the midpoint of the body of the first day. CSPiercingLine
Dark Cloud Cover A bearish reversal pattern that continues the uptrend with a long white body. The next day opens at a new high then closes below the midpoint of the body of the first day. CSDarkCloudCover
Evening Star A bearish reversal pattern that continues an uptrend with a long white body day followed by a gapped up small body day, then a down close with the close below the midpoint of the first day. CSEveningStar

Technical Indicator

IndicatorDescriptionComments
ChaikenImprove Stocks for which the 21-day Chaikin Money Flow oscillator has just moved above the +20% level.  
ChaikenDecline Stocks for which the 21-day Chaikin Money Flow oscillator has just moved below the -20% level.  
GapUps Stocks whose current low was at least 2.5 percent higher than the previous day's high.  
GapDowns Stocks whose current high was at least 2.5 percent lower than the previous day's low.  
MACDXOver Bullish MACD Crossovers - Stocks whose MACD line crossed above the signal line today after being below the signal line for the previous three days. The MACD parameters used are 26 and 12 and the signal line is a 9-day EMA of the MACD line.  
MACDXOverDecline Bearish MACD Crossovers - Stocks whose MACD line crossed below the signal line today after being above the signal line for the previous three days. The MACD parameters used are 26 and 12 and the signal line is a 9-day EMA of the MACD line.  
MovingAveXOver Bullish 50/200 MA Crossover - Stocks that had the simple moving average of the last 50 closing prices move above the simple moving average of the last 200 closing prices.  
MovingAveXOverDecline Bearish 50/200 MA Crossover - Stocks that had the simple moving average of the last 50 closing prices move below the simple moving average of the last 200 closing prices.  
New52WkHigh Stocks with a 'high' value that was higher than any previous 'high' value during the past 52 weeks (or previous 260 trading sessions). bullish indicator
New52WkLows Stocks with a 'low' value that was lower than any previous 'low' value during the past 52 weeks (or previous 260 trading sessions). bearish indicator
NewUptrendADX Stocks for which the 14-day ADX Line just moved above the +20 level (signaling a new trend) and the +DI line is above the -DI line (signaling that the new trend is upwards). bullish indicator
NewDowntrendADX Stocks for which the 14-day ADX Line just moved above the +20 level (signaling a new trend) and the -DI line is above the +DI line (signaling that the new trend is downwards). bearish indicator
NewUptrendAroon Stocks for which the 25-day Aroon Oscillator just moved above the +50 level. bullish indicator
NewDowntrendAroon Stocks for which the 25-day Aroon Oscillator just moved below the -50 level. bearish indicator
OversoldImproveRSI Oversold with an Improving RSI - Stocks whose RSI line moved above 30 today after being below 30 for the previous three days. The RSI period used is 14. bullish indicator
OverboughtDecliningRSI Overbought with a Declining RSI - Stocks whose RSI line moved below 70 today after being above 70 for the previous three days. The RSI period used is 14. bearish indicator
RunAwayGapUps Stocks that gapped up at least 2.5 percent in the middle of an uptrend. bullish indicator
RunAwayGapDowns Stocks that gapped down at least 2.5 percent in the middle of an downtrend. bearish indicator

Point And Figure(PF)

IndicatorDescriptionComments
PFAscendingTripleTop A double top followed by another double top, or three tops, each higher than the previous is recognized as an ascending triple top breakout. The idea is that demand is continuing to outstrip supply on an ongoing basis. bullish pattern
PFDescendingTripleBottom A double bottom followed by another double bottom, or three bottoms, each lower than the previous is recognized as an descending triple bottom breakdown. The idea is that supply is continuing to outstrip demand on an ongoing basis. bearish pattern
PFBullishCatapult A triple top breakout followed by a double top breakout is recognized as a bullish catapult breakout. The implication is that there was supply at the triple top level that was keeping prices from going up, but the triple top breakout took some of that supply away. Prices then retraced, allowing more buyers to create demand which continued to power the up move in prices. bullish pattern
PFBearishCatapult A triple bottom breakdown followed by a double bottom breakdown is recognized as a bearish catapult breakdown. The implication is that there was demand at the triple bottom level that was keeping prices from falling, but the triple bottom breakdown took some of that demand away. Prices then reversed up, allowing more sellers to create supply which continued the selling which broke below the double bottom level creating the bearish catapult breakdown. bearish pattern
PFBullishReversal This pattern is a series of rising tops and bottoms that finally soaks up all demand and the double bottom breakdown at the end signals that now supply is outstripping demand. bullish pattern
PFBearishReversal This pattern is a series of falling tops and bottoms that finally soaks up all the supply and the double top breakout at the end signals that now demand is outstripping supply. bearish pattern
PFBullishTriangle Triangles are formed when both the supply and demand for the stock are drying up. Prices are unable to rise but neither are they able to fall, there is an equilibrium between the buying and selling as is seen by the rising bottoms and the falling tops that form the triangle. This stalemate between buyers and sellers is finally resolved by a double top breakout in the case of a bullish triangle breakout, or by a double bottom breakdown in the case of a bearish triangle breakdown. This is one of the most reliable patterns out of all the patterns recognized by the system.  
PFBearishTriangle Triangles are formed when both the supply and demand for the stock are drying up. Prices are unable to rise but neither are they able to fall, there is an equilibrium between the buying and selling as is seen by the rising bottoms and the falling tops that form the triangle. This stalemate between buyers and sellers is finally resolved by a double top breakout in the case of a bullish triangle breakout, or by a double bottom breakdown in the case of a bearish triangle breakdown. This is one of the most reliable patterns out of all the patterns recognized by the system.  
PFBullTrap A bull trap is a triple top breakout followed by a reversal after only one box is made in the triple top breakout. The breakout is possibly due to buy stops being hit just above the resistance level, and the quick reversal suggests lower prices ahead. bullish pattern
PFBearTrap A bear trap is a triple bottom breakdown followed by a reversal after only one box is made in the triple bottom breakdown. The breakdown is possibly due to stop loss orders or short orders being hit just below the support level, and the quick reversal suggests higher prices ahead. bearish pattern
PFQuadrupleTop A quadruple top breakout is similar to a triple top breakout, except that the prices break out after retracing from the same level three times. The fourth time the demand was able to outstrip the supply at the price level, and prices broke out with a quadruple top breakout. bullish pattern
PFQuadrupleBottom A quadruple bottom breakdown is similar to a triple bottom breakdown, except that the prices break down after retracing from the same level three times. The fourth time the supply was able to outstrip the demand at the price level, and prices broke down with a quadruple bottom breakdown. bearish pattern
PFSpreadTripleTop A spread triple top breakout is similar to a triple top breakout except that the price at which the breakout occurred is a price that the chart retraced from two times before in the recent past. The two times do not have to be immediately preceding the current column. This alert implies that the price level is a significant area of resistance (area where sellers are willing to sell the stock and create supply that outstrips demand). The breakout above this level implies that the buyers are now creating more demand than there is supply and therefore the prices are breaking out. bullish pattern
PFSpreadTripleBottom A spread triple bottom breakdown is similar to a triple bottom breakdown except that the price at which the breakdown occurred is a price that the chart retraced from two times before in the recent past. This implies that the price level is a significant area of support (area where buyers are willing to buy the stock and create demand that outstrips supply). The breakdown below this level implies that the sellers are now creating more supply than there is demand and therefore the prices are breaking down. bearish pattern
PFTripleTop A triple top breakout is similar to a double top breakout except that the price at which the breakout occurred is a price that the chart retraced from two times before. This implies that the price level is a more significant area of resistance (area where sellers are willing to sell the stock and create supply that outstrips demand) than what is seen on a double top. The breakout above this level implies that the buyers are now creating more demand than there is supply and therefore the prices are breaking out. bullish pattern
PFTripleBottom A triple bottom breakdown is similar to a double bottom breakdown except that the price at which the breakdown occurred is a price that the chart retraced from two times before. This implies that the price level is a more significant area of support (area where buyers are willing to buy the stock and create demand that outstrips supply) than what is seen on a double bottom. The breakdown below this level implies that the sellers are now creating more supply than there is demand and therefore the prices are breaking down. bearish pattern

MS Bull Indicators

MS Bull IndicatorDescriptionComments
msHVGIntraday High Volume Gain Intraday  
msHVGWeekly High Volume Gain Weekly  
msHVGMonthly High Volume Gain Monthly  
msCrossedAbove200MA Crossed Above 200 Day Moving Average  
msCrossedAbove50MA Crossed Above 50 Day Moving Average  
msNew52WkHigh New 52 Week High  
msClosedAbove200MA Closed Above 200 Day Moving Average  
msClosedAbove50MA Closed Above 50 Day Moving Average  
msIOUpLastMonth Institutional Ownership Up Last Month  

MS Bear Indicators

MS Bear IndicatorDescriptionComments
msHVLIntraday High Volume Low Intraday  
msHVLWeekly High Volume Low Weekly  
msHVLMonthly High Volume Low Monthly  
msCrossedBelow50MA Crossed Below 50 Day Moving Average  
msCrossedBelow200MA Closed Below 200 Day Moving Average  
msClosedBelow50MA Closed Below 50 Day Moving Average  
msClosedBelow200MA Close Below 200 Day Moving Average  
msIODownLastMonth Institutional Ownership Down Last Month  
msNew52WkLow New 52 Week Low  

References:
http://www.nasdaq.com/reference/guru.stm
http://stockcharts.com

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Trading Tips

Avoid investing more than 40% of your portfolio in a single sector or more than 10% in a single position.

Poll

This poll is closed.
On 8/19/2009, the United States economy is out of the emergency room and appears to be on a slow path to recovery, Warren Buffett wrote in an opinion column in the New York Times.
I agree with Warren Buffet's opinion
 
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I don't agree with Warren Buffet's opinion
 
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Total Votes: 4

Finance Quote of the Day

The fact that equities are being sold down, despite the lowest interest rates in recent history, simply means that the market doesn't see growth ahead for very many businesses. - John Malone