## Technical Analysis The The "Wall Street City" data base was used to obtain price history for
S&P Depository Receipts identified by the trading symbol SPY. The data set
( The following SHAZAM commands generate some graphs that can be used for technical analysis.
The first
The above figure displays a volume bar chart at the bottom of the graph. The bottom of each volume bar is the value zero. The chart highlights the relative volume levels. The y-axis labels for the volume are not shown. The second
The above figure shows a daily bar chart where a vertical line marks the low and high values. The closing price is represented by a tick mark to the right of the bar and the opening value is given by a tick mark to the left of the bar. The moving average convergence-divergence (MACD) line is the difference between a 26-day and 12-day exponential moving average. The "signal" or "trigger" line is calculated as a 9-day exponential moving average of this difference. The bottom of the above figure displays the MACD line (red color) and the signal line (green color). This chart also shows a bar chart (blue color) that represents the difference between the MACD and signal lines. With the final option gives the
calculation of an exponential moving average for the daily closing
price. The `EMA` option is used to set the
number of time periods included in the moving average to n=20.
The weight for the exponential smoothing is set as:
`MASHORT=` w = 2/(n+1) = 2/(20+1) = 0.095 The exponential moving average is calculated as: EMA On the graph below the series SPY and EMA are the daily closing prices and the exponential moving averages, respectively. The graph also shows the lower and upper Bollinger bands.
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