Average Directional Movement Index Rating

The Average Directional Movement Index Rating measures momentum change in the ADX. ADXR is calculated by adding the current ADX value and an ADX value n periods back, then dividing the sum by two. This serves to smooth the ADX values. As with the ADX, a rising ADXR reflects a strong underlying trend and likely … Read more

Average Directional Index (ADX)

Developed by J. Welles Wilder, the Average Directional Index (ADX) measures the degree of directional movement and reflects strength of a trend. The ADX line measures the directional movement as an oscillator on a scale of 0 to 100. Readings below 20 reflect a weak trend and readings above 40 reflect a strong trend. Readings … Read more

Stix Oscillator

The STIX is a short-term trading oscillator published in The Polymetric Report. It measures market momentum by comparing the volume flowing into advancing and declining stocks. Chart courtesy of Prophet Financial Systems (www.prophet.net)

Automated Trading Systems and the Forex Market

An army of small speculators have entered the forex arena armed with pooled knowledge and sophisticated technology rivaling that of large institutions. By Dan Blystone As the editor of a website focused on trading and investing I try to keep track of industry related trends and the hot topics of the moment. Notably, the combination … Read more

Rate of Change

The Rate of Change Indicator (ROC) is an oscillator that shows how rapidly the price of a security is moving. It compares the difference between the current price and the price from a set prior time period. ROC rises with price increases and falls with price declines. ROC is often used as a short term … Read more

Asian Currency Crisis

A financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries, many part of the East Asian Tigers. The Thailand Baht was devalued by as much as 48%, dropping to close to a 100% fall by New Year of 1998. The Indonesian Rupiah … Read more

Jim Rogers

Jim Rogers is a hedge-fund manager, analyst, and author of Investment Biker: Around the World with Jim Rogers (2003), Adventure Capitalist: The Ultimate Road Trip (2004), Hot Commodities: How Anyone Can Invest Profitably in the World’s Best Market (2007), A Bull in China: Investing Profitably in the World’s Greatest Market (2008), A Gift to My Children: A Father’s … Read more

Arthur Pigou

Arthur Pigou (1877-1959) was an noted English economist. Pigou attributed the movements business cycle to human sentiment – the upward swings being caused by excesses of optimism and the downward swings being caused by excesses of pessimism. Pigou is well know for his work in Welfare Economics.

Jim Pallotta

City: Boston 2008 Age: 50 Jim Pallotta spent 15 years as a money manager for Paul Tudor Jones at the $18 billion Tudor Investment Corp. According to a letter sent to investors, Pallotta is leaving Tudor Investment to start his own firm. He will retain control of his $5 billion Raptor Global Fund along with … Read more