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SMEGEY
,
If you have access to Blommberg could you provide a GOC chart for us on CCC ? many thanks if you ar wny one else can


""Bloomberg extract

One of the most-popular technical
indicators in Asia was published in
1968 by Japanese newspaper writer
Goichi Hosada, who began developing
the technique in the 1930s. Called Ichimoku Kinko
Hyo, which is often translated from the Japanese
as ?equilibrium chart at a glance,? the indicator?s
name suggests taking one look (ichimoku) at a chart
(hyo) to define areas of equilibrium or balance
(kinko) or changes in them. You can access this
chart, which is sometimes also called a cloud chart,
using the General Overview Chart (GOC) function,
the Custom Charts (G) function or Launchpad.
Type 7751 JP GOC , for example,
to graph the stock of Tokyo-based office
equipment maker Canon Inc.
In contrast to simple moving averages, which
many analysts calculate using only closing prices,
GOC takes into consideration highs and
lows as well. Ichimoku advocates say a graph
with a variety of price points provides a richer
picture of price behavior. Using such a chart,
they say, increases the likelihood of getting an
analysis right.
The chart is made up of five lines. The conversion
line plots the average of the highest high and
the lowest low over the past nine periods. The base
line is the average of the highest high and the lowest
low for the past 26 periods. The lagging span plots
the current closing price back 26 periods. Using
daily data, for example, the lagging span compares
the current market price to prices 26 days?roughly
a month?ago to determine the strength of the
Into the Cloud
market. Leading span 1 is equal to the base line plus
the conversion line divided by two and plotted 26
periods forward. Leading span 2 is the highest high
and the lowest low during the past 52 periods divided
by two and plotted 26 days forward. The area
between these two
lines forms the
cloud, which is
shaded blue. The use
of 9 and 26 periods
is the convention
developed by Hosada.
You can change
the number of periods by typing TDEF 15
and entering desired values in the fields in the
GOC/IGOC section of the screen.
the relative strength index is an indicator that
can be used to measure the momentum or strength
of a price trend. You can augment a GOC chart by
adding an RSI study that you can use to confirm
signals and trends. RSI is an oscillator that moves
between 0 and 100, comparing the magnitude of
recent gains to losses. The standard way to generate
signals from RSI is to buy when the RSI line crosses
above the oversold level (usually 30) and to sell
when it crosses below the overbought line (usually
70). A more sophisticated way to analyze RSI is to
modify the range of the overbought and oversold
levels based on the trend in price. In an uptrend,
expect RSI to oscillate between 40 and 80. In a
downtrend, expect it to move between 20 and 60. In
the chart on the next page, you can see that RSI held
mostly above 40 during American Express Co.?s
five-year uptrend. Type AXP US RSI
to display the RSI for American Express stock using
the Relative Strength Index function. ?
GOC Signals
GOC generates buy and sell signals in several ways. You can incorporate
candlestick patterns to confirm crosses, support and resistance.
Source: Bloomberg
BULLISH BEARISH
Conversion line
Lagging span
Leading span 1
The cloud
Crosses above base line
Above price
Crosses above leading span 2
Leading span 1 above leading span 2
Crosses below base line
Below price
Crosses below leading span 2
Leading span 1 below leading span 2
Use the General Overview Chart with RSI to help predict changes in price trends.
By PAUL CIANA
equi ties
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