Does anyone have info on market acceleration?
Does anyone have info on market acceleration?
Intel, I for one am not sure I know what you mean when you say market acceleration. could you give a little more detail?
I am constantly reading about trends going parabolic and "blow-off tops"-meaning angle of change in the trend has changed to becoming almost vertical compared to recent angle of the trend on the chart. Is that sort of similar to what you are asking about?
alevin: in a way that was my own question. I am trying to find out how do we define market acceleration and momentum. I hear it on CNBC all the time. The other day I hear the market was accelerated close or above 8. They were talking about the second derivative. I am sure you also hear about the market momentum too. I know how physics define those concepts but the economist may have use those concepts and applied to the financials or even to the market.
Well, ok, now I understand better what you are asking about. Market momentum is when there are indications that the market is going to keep heading the direction its already going. there are many indicators used for that-for instance if you use the ADX/DM+/- indicator-when the ADX line itself goes above 40, that tells a person the trend is very strong.
I posted last night in my thread that in the DeMark system I'm working with, when the counted pattern I'm following down, is showing trend down in the $US dollar, that is likely to continue for quite a few more weeks (ie momentum is showing).
I'll post the picture tonight to try to explain that one better. And I'll post a pic of an ADX situation that shows strong trend (momentum) and point out where indications of weaking trend start showing up or are already present.
Acceleration is a little different than momentum tho. I use acceleration in different ways than I use momentum. I'll try to show some things about momentum first. let you chew on that a bit, 'kay?
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The long-term trend is bullish, the cycle is bullish, the season is inclining to the bears, but the noise is getting lower and bullish. After all the sentimental survey is bullish.
Here is a place you may want to bookmark and spend some time studying. glossary of market terminology. Momentum is in the list, acceleration is not.
http://onelook.com/?w=acceleration&ls=a physics noun: a rate of change of velocity
http://onelook.com/?w=momentum&ls=a physics the tendency of a moving object to keep moving unless another force stops it or slows it down
A good set of about 10,000 dictionaries assuming that you do not want to get into the mathematics details.
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What Does Market Momentum Mean?
A measure of overall market sentiment, calculated as the change in the
value of a market index multiplied by the aggregate trading volume
occurring within the index components.
Investopedia explains Market Momentum
Market momentum can be a good indicator of overall market changes whichare likely to continue in the near future. It is important to understandthat momentum considers not only changes in price level, but alsovolume. For example, if the Dow Jones Industrial Average (DJIA) was upsignificantly over several trading days, this price movement would besaid to have more force, or momentum, if it occurred with heavy trading
volume as opposed to low volume.
The velocity analogy may be the Stochastics indicator and the rate of change of the Stochastics may be the acceleration. However, not 100% sure about these analogies.
Perhaps, we may see acceleration as parallel to volatility: As investors get nervous, they begin to hedge their bets with options. Option pricing can tell us a lot about what is happening in the stock market. One way to measure volatility is to keep an eye on that option pricing by looking at the VIX, the Volatility Index, also known as the "fear gauge."
Is it all about the earnings or not? How come sometimes strong earnings push market to go or continue bullish and sometimes strong earnings push market to go or turn bearish If it is not all about the earnings, then it must be about the conditions for the future earnings including Fed accommodations, the emotional stage of the players based on economic indicators with an outlook into the future, and or the other things...
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