NAIA Airport is the airport serving the general area of Manila and its surrounding metropolitan area. Located along the border between Pasay City and Parañaque City, about seven kilometers south of Manila proper, and southwest of Makati City, NAIA is the main international gateway for travelers to the Philippines and is the hub for all Philippine airlines.

Monday, February 15, 2010

What is a Stochastic Indicator and How Can I Use it?

By: Richard Meade

A Stochastic Indicator is a measure of price momentum. Otherwise known as Stochastic Oscillator, it was developed by George C Lane in the late 1950's. Based upon a predetermined high and low range, it will indicate a closing price after a consistent level of either high or low closing prices measured over a set number of periods. A consistent high level near the top of the range creates an accumulation or momentum known as 'buying pressure' and a consistently low level near the bottom of the range creates a distribution or momentum known as 'selling pressure' The Stochastic Oscillator will indicate when a trend is about to turn and flags up a buy or sell signal to the trader.




This article tells you how a Stochastic Indicator is calculated and how it is used to help make successful trades.

The calculation is as follows:

100 X ratio (recent close - lowest low)/(highest high - lowest low) = %K, where the lowest low and highest high is taken over a specified period. The most common period is 14days with the highs and lows recorded for each of the 14 days and the recent close is the closing price on the 14th day. This in effect mathematically compares the latest closing price to previous prices over the number of periods being considered. Clearly, since this ration is a percentage figure, it will vary or 'oscillate' between 0 and 100 over a period of time and is represented by a %K line on your chart.

The signal line or %D line is simultaneously plotted alongside the %K line and is normally a 3 period moving average. It effectively smoothes out the oscillations making it easier to spot the turn in trend which is why it is called the signal line.

What I have just described above is in fact known more specifically as a Fast Stochastic Indicator. There is also a Slow Stochastic Indicator and a Full Stochastic Indicator which are similar but more advanced and beyond the scope of this particular article. If you follow my articles on my by blog at http://forexinvestmentmarket.blogspot.com/ I will be posting more on this subject in due course.

There is no need for you understand the mathematics here or to even make this calculation yourself because most trading software will do this for you and will be shown plotted on a chart provided by your system supplier or forex broker account.

However, unless you are using a robot to trade for you, it is necessary for you to know how to use the Stochastic Indicator to help with your forex trading decisions.

In very simple terms, if both the %K and %D lines are high relative to your horizontal 'sell' trigger line then it is a signal that the market is overbought and about to reverse. This is and indication to sell.

Conversely, if the lines are low relative to your 'buy' trigger line then it is a signal that the market is oversold and about to reverse. This is an indication to buy.

Of course the trigger lines are set to suit your own trading style, usually somewhere between 70 and 80 for the high and between 20 and 30 for the low.

Different traders interpret the Stochastic Indicator lines in different ways. For example when they intersect going up or coming down is often used as a trigger to buy or sell. Before making any real trading decisions based on Stochastic Indicators, as always you should paper trade to become familiar with then and the positioning of your horizontal trigger lines. In other words develop your own system.

Never ever use the Stochastic Indicator as your only guide to trading. You should always use a combination of indicators which all point in the same direction before you make a decision.

About the author:

to learn more go now to Richard Meade's blog http://forexinvestmentmarket.blogspot.com/ where in addition to his regular articles about forex trading he publishes monthly reviews of the latest and best forex trading products on the market. His new eBook Quick And Easy Forex Trading is aimed at understanding the fundamentals of forex trading...it's on special offer now at http://www.forextradingebook.com/


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Philippines Light Rail Transit Public Transportation

The Manila Light Rail Transit System (Filipino: Sistema ng Magaan na Riles Panlulan ng Maynila),[citation needed] popularly known as the LRT, is a metropolitan rail system serving the Metro Manila area in the Philippines. Its twenty-nine stations over 28.8 kilometers (17.9 mi) of mostly elevated track form two lines. LRT Line 1, also called the Yellow Line, opened in 1984 and travels a north–south route. LRT Line 2, the Purple Line, was completed in 2004 and runs east–west.

The LRT is operated by the Light Rail Transit Authority (LRTA), a government-owned and controlled corporation under the authority of the Department of Transportation and Communications (DOTC). Along with the Manila Metro Rail Transit System (MRT, also called the Blue Line), and the Philippine National Railways (PNR), the LRT is part of Metro Manila's rail transportation infrastructure known as the Strong Republic Transit System (SRTS)

Stations

Santolan Recto Baclaran Monumento Cubao

The People Power Revolution was a series of nonviolent and prayerful mass street demonstrations in the Philippines that occurred in 1986. It was the inspiration for subsequent non-violent demonstrations around the world including those that ended the communist dictatorships of Eastern Europe.

A glimpse of Philippine culture through traditional dances and songs performed by some of the country's best dance groups.

In 1990, it was voted by the BMW Tropical Beach Handbook as one of the best beaches in the world

Barasoain Church (also known as Our Lady of Mt. Carmel Parish) is a Roman Catholic church built in 1630 in Malolos City, Bulacan.

Laguna de Bay (Filipino: Lawa ng Bay; English: Laguna de Bay is the largest lake in the Philippines and the third largest freshwater lake in Southeast Asia

Malacañan Palace, is the official residence of the President of the Philippines.