After you open your account in COL it feels heaven that you have now buying power of purchasing company shares that you wanted. But before that, it's important that you should be familiarize with basic terminologies that you'll encounter as you open your account. COL Financial provides basic terminologies and its definition as your guide.
4 Terminologies as for your Indicator guide.
2. SUPPORT/RESISTANCE (SHORT-TERM/MEDIUM-TERM) - Support is a price point below current prices where some buying interest may surface to try hold prices from falling. Resistance is an area above current prices where heavier selling pressure may be expected and cause prices to have a hard time rising. The guide establishes the presence of a stock's price location above or below certain Moving Averages to compose itself as Support or Resistance respectively. A black number in the Support /Resistance columns indicate support while a red number indicates resistance. The Support and Resistance numbers are determined by various moving averages. The 32-day Moving Average shows a Short Term view of support and resistance while the 65-day Moving Average shows a Medium Term view.
3.52-WK HIGH/LOW - this shows an index or stocks high and low range within the last year (52-weeks).
4.% FROM 52-WK HIGH - this indicates how far an index or stock has retraced below its 1-yr high. The closer to its 52-wk high, the stronger the upward trend is indicated. A corrective swing greater than 8% (indicated in Red), usually depicts a heavier reaction in progress and that rallies may have to air out consolidation patterns first.
8 Terminologies for your TECHNICAL GUIDE and
| Recommendations for your Stock Update |
| 1. BUY - an up trend showing an ongoing upward drive | |
| 2.HOLD - stay with what you have or, if without a position, wait for a BUY | |
| 3.TAKE PROFITS - suggests a reduction in position as a loss in upward momentum may trigger a consolidating reaction or pullback to support | |
| 4. RANGE TRADE - proposes a trading buy from rebounds off supportive areas | |
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| 5. LIGHTEN - reduce positions as range rallies seem to be tapering off | |
| 6. SELL - a down trend showing a continuing downward drive | |
| 7. SELL INTO STRENGTH - a down trend showing a technical rally that may offer better prices to sell to, especially if it nears next resistance | |
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8. Rating Initiated - Each recommendation is followed by a date stamp to alert you
when the recommendation was first triggered.Try to understand and study this basic terminologies as your guide when buying or selling your stock shares! For sure you'll have nose bleed as you enter the world of stock market.
Reference:www.colfinancial.com
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