Basics of Technical Analysis — Charts

Technical analysis is often criticized for its lack of scientific proof, modeling capability, and "abstract" approach to analyzing stocks. While technical analysis on its own may not be very powerful—when combined with other forms of analysis such as fundamental analysis and simulations, it may provide a unique insight into the market.

Today I would like to introduce some basic charts utilized by technicians. We have all seen the standard line chart. The line chart is the most basic chart, as it only takes into account the closing price of the stock for a set period of time. There are advantages and disadvantages to line charts. One of the biggest advantages of the line chart is that it offers a clean, easy-to-see representation of a stock trend. However, there are many disadvantages of a line chart—they do not contain intraday information, high/low information, nor do they show the range that the stock traded during the day.

A line chart.
Source: stockcharts.com

A second chart often used by traders is called the bar chart. Bar charts alleviate the disadvantages of the line chart by providing high/low information and range information. The top of the bar chart represents the high for the stock during the day, and the bottom of the bar represents the low for the stock. The horizontal line to the right of the bar represents the closing price. Sometimes, there is also a horizontal line to the left of the bar—this represents the opening price.

A bar chart.
Source: TradeStation

The third and final chart that I would like to cover is the candlestick. The candlestick chart was invented in Japan and was used as early as the mid-1600's to trade rice futures. A candlestick chart offers the same information as the bar chart, but a candlestick chart always includes the opening price. The actual "candlestick" is called the Real Body and what looks like a wick extending out of the candlestick are called shadows. The candlestick is shaded white (or green) to indicate a day where the stock closed higher, and black (or red) to indicate a day where the stock closed lower.

How to read a candlestick.
Source: Wikipedia.org

A candlestick chart.
Source: TradeStation

By utilizing a variety of different charts, you can gain a much better understanding of intraday price movements. Additionally, it is easier to see large price movements and the momentum of a specific stock by observing ranges and high/low information—both of which can be observed in charts like the candlestick and bar charts.

Olympus OM-D E-M5 In-depth Review

Here is my in-depth review of the Olympus OM-D E-M5. This is an excellent camera for the amateur and the enthusiast. I highly recommend this camera.




Included in the review are sample images and a sample video:

Please let me know what you think!

Olympus OM-D Test Video (Low Light, Manual Focus)

Here is a video I shot with the Olympus OM-D in low light using manual focus. I'm using the OM-D with the Panasonic Leica 25mm f/1.4 lens.

I am very impressed with the video quality from this camera. The audio is also very good.

Olympus OM-D Low Light Performance with Panasonic Leica 25mm f/1.4

I took the Olympus OM-D out last night for some low light shots. The camera performed very well in low light, with outstanding image quality even at high ISO levels. The Panasonic Leica 25mm f/1.4 produced beautiful bokeh and colors. Here are some low light shots:

f/2.0 @ ISO 1600

f/1.4 @ ISO 1600

f/1.6 @ ISO 3200

f/1.4 @ ISO 400

  

f/1.4 @ ISO 1600

Olympus OM-D with Panasonic Leica 25mm f/1.4 Shots

I took some pictures with the Olympus OM-D and Panasonic Leica 25mm f/1.4 and wanted to share :)

 The second picture is with the Light Tone art filter applied. Some of the art filters are actually really good in my opinion!

Micro Four Thirds vs. DSLR Cameras

Many people are familiar with DSLR (Digital single-lens reflex) cameras. Most DSLR cameras use an APS-C sensor, which is much larger than the sensor in your cell phone or your point-and-shoot camera. A large sensor allows the camera to receive more light—and typically, a larger sensor means that the camera will produce better images. However, in order to house this larger sensor the overall weight and size of the camera also increases—not to mention the cost of the camera. This is where a smaller, yet capable camera sensor system comes in: Micro Four Thirds.

As shown in the image above, the Micro Four Thirds sensor is much larger than a conventional point-and-shoot sensor (between 1/2.5" and 1/1.6"), but still smaller than an APS-C sensor and a Full Frame sensor.
Image source: Wikimedia Commons

The Micro Four Thirds System is a relatively new camera standard that has an image sensor which is much larger than a point-and-shoot's sensor, but still smaller than an APS-C sensor. This allows users to have image quality similar to a digital SLR camera while reducing the size, weight, and costs associated with digital SLR cameras.

The main advantages of Micro Four Thirds cameras include:

• Reduced weight and size as compared to DSLR cameras
• Excellent image quality as compared to point-and-shoot cameras
• Interchangeable lenses on a single standard (it does not matter if you're shooting Panasonic or Olympus—the Micro Four Thirds standard allows for lenses to be interchanged as long as the lens is Micro Four Thirds)
• Less expensive than DSLR cameras, while retaining most of the image quality

Micro Four Thirds cameras allow for interchangeable lenses.
Image source: Wikimedia Commons

One of the main features of Micro Four Thirds cameras is that the Micro Four Thirds standard allows for interchangeable lenses on any Micro Four Thirds cameras, provided that the lens is Micro Four Thirds. This allows the user to choose his or her lens and mount it to the camera instead of being stuck to a fixed lens on a point-and-shoot camera. Additionally, it does not matter if your lens is made by Panasonic and you are mounting it on an Olympus camera—as long as the lens is Micro Four Thirds, it will be interchangeable among different Micro Four Thirds cameras. This is a significant benefit, as users do not have to decide between manufacturers when purchasing lenses (i.e., Nikon and Canon).

Cameras like the Olympus OM-D include features like a magnesium alloy body and 9 FPS shooting, trending closer to the features offered by high-end DSLRS.
Image source: pli-it.blogspot.com

Created by Olympus and Panasonic in 2008, the Micro Four Thirds system has been gaining popularity among both the average consumer and the enthusiast. Upcoming cameras like the Olympus OM-D ($999 for body only, $1299 with 14-50mm kit lens) includes features usually found in high-end DSLRs such as a Magnesium Alloy body and 9 FPS capability. For the consumer looking for a simpler point-and-shoot type of camera can opt for a cheaper Panasonic DMC-GF2, which costs less than $400 with a 14-42mm lens and offers much better image quality than a comparable point-and-shoot in the same price range.

This new camera format is causing many users of DSLRs to sell their camera gear and move over to the Micro Four Thirds system. Keep in mind, a full frame DSLR such as the Canon 5d Mark II will still have superior image quality when compared to a Micro Four Thirds camera, because of the larger image sensor. However, for users who do not shoot professionally and want to carry a smaller, lighter, camera that offers outstanding image quality—the Micro Four Thirds system offers more for less, when compared to a bulky DSLR. And it is this "bang for the buck + size + weight + image quality" combination that is making the Micro Four Thirds system gain so much popularity.

OLED vs. LED-LCD and Current HDTV Technology

TV Technology always seems to be improving. With CES 2012, we have been exposed to more OLED devices, and more notably OLED TVs. OLED stands for organic light-emitting diode, and it is paving the way for better picture, higher contrast, and thinner televisions and visual devices.

OLED TVs on display at CES 2012.
Image source: treehugger.com

What is the difference between OLED and LED-LCD TVs which are available now? To summarize a huge subject in to a few sentences: OLED does not require a backlight, as compared to an LCD which requires a backlight (the backlight being LEDs in an LED-LCD TV). This simple fact allows an OLED to be drastically thinner than conventional HDTVs out today.

Another huge advantage of OLED displays is the fact that they have the potential be twisted and turned to almost any degree, given their extremely thin nature and no need for a backlight.

OLED displays have the potential to be twisted and bent in many different angles
while preserving the image. Try that with a conventional screen.
Image source: mydigitallife.info

OLED technology has always been in the back of manufacturers' minds, but recently the technology has finally seen the momentum that the market has been waiting for. With an already saturated LCD TV Market, new technologies must break the barrier of what is possible in terms of image quality, contrast, and realism. OLED is exactly that new technology which will revitalize a market that currently seems capped.

Many cellphones already use an AMOLED screen which offers a drastic different when viewing pictures and video. OLED technology has been expensive to develop, but like any other technology, with time prices come down (we can see this same trend in the SSD market).

OLED redefines how thin TVs can be.
Image source: treehugger.com

Get ready for the new revolution past the standard HDTVs that we have on the market today. With OLED, we will certainly see drastically better picture quality, contrast, and with that, the possibility of a new HDTV standard with a much higher resolution than 1080p. Strap yourselves for an exciting decade in visual technology.

Chairman and Three Directors from Yahoo Step Down

Yahoo! Inc. has been experiencing a plethora of changes recently. First beginning with CEO Carol Bartz being removed as CEO and replaced with Mr. Scott Thompson. And now, three directors from Yahoo's Board of Directors are stepping down. In addition, the Chairman, Mr. Roy Bostock has also stepped down.

Former Chairman of the Board, Roy Bostock stepped
down along with two other directors.
Image Source: AP

What do the new changes mean for Yahoo? With Google continuously applying pressure to Yahoo's search engine, and a failure of the Bing contract with Microsoft, Yahoo is in need of dire change. Perhaps this change will not only please stockholders, but may introduce inherent changes to the company's technological direction and focus.

Only time will tell—over at Yahoo however, time is something far from perpetual—which gives further reason to the changes to the Board of Directors.