Optimizerx Corp (OPRX) are in focus today as the charts are revealing that the Mesa Adaptive Moving Average (MAMA) is holding steady above the FAMA, or Fractional Moving Average. This environment typically indicates that there might be a buying opportunity aligning in technicals. When there are crossovers between the FAMA and MAMA, the shares are often widely traded. When the MAMA crosses above the FAMA, it means that the shares are likely to move higher. Conversely the opposite occurs when the MAMA crosses below the FAMA. The Mesa Moving Average was first mentioned by John Ehlers in a paper published in a 2001 edition of Technical Analysis of Stocks and Commodities Magazine. The below was excerpted from the publication,
“The MESA Adaptive Moving Average (MAMA) adapts to price movement based on the rate of change of phase as measured by the Hilbert Transform Discriminator (Technical Analysis of Stocks and Commodities magazine, December 2000). This method features a fast attack average and a slow decay average so that composite average rapidly ratchets behind price changes and holds the average value until the next ratchet occurs.”
Investors may be diving into the latest company earnings reports trying to scope out some quality stocks to add to the portfolio. Nobody knows for sure which way overall market momentum will sway as we near the close of the calendar year. Investors may be getting ready to do a portfolio review to see which stocks are worthy to hold, and which ones have underperformed a may need to be unloaded. Regularly monitoring stock investments may keep the investor ready for any big market changes that may occur.
Interested traders may also be keeping an eye on the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. Optimizerx Corp (OPRX)’s Williams Percent Range or 14 day Williams %R currently sits at -9.46. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.
Another technical indicator that might serve as a powerful resource for measuring trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for Optimizerx Corp (OPRX) is noted at 32.11. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
Investors may use various technical indicators to help spot trends and buy/sell signals. Presently, Optimizerx Corp (OPRX) has a 14-day Commodity Channel Index (CCI) of 163.67. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.
Taking a look at other technical levels, the 3-day RSI stands at 98.99, the 7-day sits at 90.07 and the 14-day (most common) is at 76.21. The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.
Keeping an eye on Moving Averages, the 50-day is 12.86, the 200-day is at 13.54, and the 7-day is 13.32 for Optimizerx Corp (OPRX). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.
Active traders are often looking for the next great move to secure profits in the stock market. Traders might be tracking stocks that are primed for a breakout. When a stock suddenly breaks to the upside, it has the potential to bring the optimistic crowd along with it. The breakout may bring in traders who missed out on the beginning of a run trying to capitalize on the back end. The professional trader is typically one who is able to stand out from the crowd. Being able to separate fantasy from reality can mean big profits for the dedicated trader. Impulse buying or selling on good or bad news is common in the stock market. Being able to come to a reasonable conclusion about why stock prices are headed one way and not the other can be a tough proposition. Paying attention to all the headlines may lead some traders down the path of no return if trades are being made strictly on daily news or even perception or that news. Discerning between what is actually driving a stock and what is perceived to be driving a stock may end up being a large factor between future gains and losses in the equity market.
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