Shares of Akebia Therapeutics (AKBA) are on watch as the Tenkan Line has moved below the Kijun line, indicating negative momentum for the equity. Akebia Therapeutics moved 0.11 in the most recent session and touched 6.20 on a recent tick.
The Tenkan Line or Tenkan Sen (Sen means line in Japanese) is known as the conversion line or turning line is similar to a 9SMA but actually is quite different. Remember a SMA (simple moving average) will smooth out all the data and make it equal but the Tenkan Line will take the highest high and lowest low over the last 9 periods. The explanation for this is Hosada felt price action and its extremes were more important than smoothing any data because price action represented where buyers/sellers entered and directed the market, thus being more important than averaging or smoothing the data out. As you can see by the chart below, the Tenkan Line is quite different than a 9SMA. Because the TL (Tenkan Line) uses price instead of an averaging or the closing prices, it mirrors price better and is more representative of it. You can see this when the TL flattens in small portions to move with price and its moments of ranging.
Akin to all moving averages, the angle of the Tenkan line is very important as the sharper the angle, the stronger the trend while the flatter the Tenkan, the flatter or lesser the momentum of the move is. However, it is important to not use the Tenkan line as a gauge of the trend but more so the momentum of the move. However, it can act as the first line of defense in a trend and a breaking of it in the opposite direction of the move can often be a sign of the defenses weakening.
Investors looking to make big gains in the equity market may be looking to fine tune an existing strategy or create a whole new one. It may sound quite easy, buy low and sell high. Obviously, navigating the stock market typically entails much more than that. Identifying market tops and correction levels may be very difficult. Of course, it always hurts to take a loss, but figuring out how to shrink losses can help keep the ship afloat during turbulent market conditions. The situation for the average investor may vary greatly from one person to the next. Some investors will be working with a short-term plan, while other may be focused on a longer-term investment horizon. Goals may also vary from individual to individual. Keeping these goals in sight may help clear up the sometimes foggy investing waters, and provide clarity for creating a winning portfolio.
Investors and traders using technical analysis to examine stocks may be interested in taking a look at additional technical indicators such as the ATR or Average True Range. Currently, Akebia Therapeutics (AKBA) has a 14-day ATR of 0.40. The Average True Range is an investor tool used to measure stock volatility. The ATR is not used to figure out price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.
The Williams Percent Range or Williams %R is another technical indicator worth checking out. Akebia Therapeutics (AKBA) currently has a 14 day Williams %R of -19.81. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.
The Average Directional Index or ADX is technical analysis indicator used to discern if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX for Akebia Therapeutics (AKBA) is 12.84. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.
Traders may be leaning on technical stock analysis to help with investing decisions. Akebia Therapeutics (AKBA) currently has a 14-day Commodity Channel Index (CCI) of 112.03. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
Traders are paying renewed attention to shares of Akebia Therapeutics (AKBA). The current 14-day RSI is presently sitting at 52.50, the 7-day is 63.22, and the 3-day is 79.65. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.
Occasionally, investors may feel like they are riding on a wild roller coaster when dealing with the stock market. Controlling emotions when taking the ride may assist with making necessary decisions when the time comes. Many investors choose to do thorough research when purchasing any stock. Knowing what is owned and why it is owned may help ease the mind when things get sticky. When the market is riding high and there is generally smooth sailing on the investing seas, individual investors may have the tendency to get complacent. Being prepared for any situation may help ease the stress of big market decision making. There may be a time when it seems like everything is going off the rails, but having an actual game plan for management and recovery could make a huge difference both financially and psychologically.
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