Steadfast Group Ltd (SDF.AX) shares have seen their Schaff Trend Cycle gradually uptrend this week over the past 3 sessions. While this indicates nice price momentum, it also suggests that if the reading moves into overbought territory (STC of 70), then the liklihood of a reversal greatly increases. Investors will be watching very closely over the next few days to see if the trend contiunes or reverses.
The Schaff Trend Cycle (STC) indicator combines the common indicators of MACD & Stochastic. The benefit of the Schaff Trend Cycle is that it is meant to be quicker than the standard macd and stochastic signals. The indicator uses similar methods to a MACD i.e uses exponetial moving averages but applies a cycle factor to them. Then the ‘price’ is smoothed using a mofidied Wilders’ smoothing algorithm. The Schaff Trend Cycle indicator fluctuates between 0 and 100. Readings below 20 are considered oversold while readings above 80 are considered overbought. The STC indicator fluctuates between 0 and 100. Readings below 20 are considered oversold while readings above 80 are considered overbought.
Active traders have a wide variety of technical indicators at their disposal for completing technical stock analysis. Here we will take a look at a few more. Presently, the 14-day ATR for Steadfast Group Ltd (SDF.AX) is spotted at 0.06. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.
As soon as an individual decides what they want out of their investments, they can start formulating the best way to accomplish those goals. The time horizon for each investor may be different. Fluctuations in the financial markets can have a big effect on shorter-term investments. Investors that need a certain amount of money in a shorter amount of time may be looking to develop a stock market strategy with a bit less risk involved. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more risk. The volatility of today’s markets can test the nerves of any investor. Understanding volatility and market fluctuations can help the investor gauge their risk tolerance in the markets.
Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Steadfast Group Ltd (SDF.AX)’s Williams Percent Range or 14 day Williams %R is resting at -6.25. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.
Investors may use multiple technical indicators to help spot trends and buy/sell signals. Presently, Steadfast Group Ltd (SDF.AX) has a 14-day Commodity Channel Index (CCI) of 251.64. 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.
The Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Presently, the 14-day ADX for Steadfast Group Ltd (SDF.AX) is 17.24. In general, 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. The ADX alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.
Taking a peek at some Moving Averages, the 200-day is at 2.54, the 50-day is 2.68, and the 7-day is sitting at 2.68. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.