Ultrashort FTSE Europe Proshares (EPV) shares have seen increased volatility of late and the Aroon Oscillator is showing signs of a continued downtrend with a negative reading that is gaining momentum.  The Aroon Oscillator was developed by Tushar Chande to highlight the start of a new trend and to measure trend strength. Chande first described the indicator in the September 1995 issue of Stocks & Commodities magazine. The Aroon indicator system consists of three lines: Aroon Up, Aroon Down, and the Aroon Oscillator which reflects the difference between the two. “Aroon” is a Sanskrit word meaning “dawn’s early light”.  The Aroon indicator is derived from two lines, Aroon Up and Aroon Down. Both lines run in a marked range between 0-100 to help define a currency pair’s strength or weakness. The Aroon Down is depicted as a green line and as its name suggests helps track price in a downtrend. Aroon Up is depicted as a red line and measures the strength of an uptrend. Traders will watch both lines as they oscillate between 0-100 and change their market preference as one line crosses above the other. If Aroon Down is above Aroon Up the trend is considered down with price expected to go lower.

Investing in the stock market comes with inherent risk. Some stocks are much riskier than others, but there will always be some level of risk no matter which stocks are chosen. Individual investors managing their own portfolios are constantly on the lookout for investing tips or some kind of information that may confirm their gut feeling about a certain stock. Investors may want to be wary when listening to stock investment advice from friends, family members, or even trusted colleagues. People are usually quick to tell others about the winning stocks that they have picked in the past, but they may not be very forthcoming about discussing those portfolio clunkers. After hearing about the next big stock, investors can always do the research and check the prospect out for themselves.

Currently, the 14-day ADX for Ultrashort FTSE Europe Proshares (EPV) is 28.31. Generally speaking, 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 Average Directional Index or ADX is a technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points.

Ultrashort FTSE Europe Proshares (EPV) presently has a 14-day Commodity Channel Index (CCI) of 147.03. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is currently at 48.08, the 7-day stands at 63.64, and the 3-day is sitting at 89.79.

Taking a peek at some Moving Averages, the 200-day is at 34.33, and the 50-day is 36.63. Dedicated investors may be looking to employ another tool for doing technical stock analysis. The Williams Percent Range or Williams %R is a technical indicator that was designed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. Ultrashort FTSE Europe Proshares (EPV)’s Williams Percent Range or 14 day Williams %R presently is at -17.17. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.

The investing world can be an exciting yet scary place. It is an ever-changing environment filled with profits, losses, and everything in-between. There are always new challenges waiting right around the corner for the individual investor. Just when things seem stable and steady, some unexpected event can send markets into a tizzy. Most investors try hard to create a stock portfolio that can stand on its own during the stormy periods. Unsettling market conditions come with the territory, but knowing how to deal with these conditions can separate the winners from the losers over the long run.

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