Leap Therapeutics Inc (LPTX) shares are being watched closely by traders as the Awesome Oscillator signal is revealing a downward trend building over the past five bars, signaling that market momentum is building for the name.
The Awesome Oscillator (AO), created (and aptly named) by Bill Williams, is an indicator which is able to show what is happening with driving force of the market.. The Awesome Oscillator is created using the difference between the 34-period and 5-period simple moving averages of the bar’s midpoints (H+L)/2. The AO is usually planned as a histogram in which bars higher than the preceding bar will be colored green. Bars lower than the preceding one will be colored red. The Awesome Oscillator was introduced by Williams in his book “New Trading Dimensions”.
Many new investors may be frantically researching the best way to study the stock market. It is hard to say with any certainty which approach will work out the best. Traders may tend to gravitate towards studying the technical, while longer-term investors may be more likely to use fundamental analysis. Of course, many individuals will opt to use a combination of both. Determining the individual risk tolerance and time horizon can play a big part in deciding which way to tackle the market. Short-term trading can be highly risky and may not be suitable for certain individuals. Long-term investing may be the favored way to get into the stock market, but this may vary from person to person. Investment strategies can range from super simple to ultra complex. The one thing that most stock market followers would agree on is that there is rarely any substitution for hard work, dedication, and putting in the required hours of study.
Another popular indicator among technical analysts that can help to measure the strength of market momentum is the Average Directional Index or ADX. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line. At the time of writing, the 14-day ADX for Leap Therapeutics Inc (LPTX) is standing at 31.99. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
Leap Therapeutics Inc (LPTX)’s Williams Percent Range or 14 day Williams %R is sitting at -97.14. Typically, if the value heads above -20, the stock may be considered to be overbought. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold. The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI is currently at 29.47, the 7-day stands at 18.09, and the 3-day is sitting at 5.82.
Taking a look at another technical level, Leap Therapeutics Inc (LPTX) presently has a 14-day Commodity Channel Index (CCI) of -83.66. 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. Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Presently, the 200-day moving average is at 2.20 and the 50-day is 1.78.
Investors are always looking for any little advantage when trading the stock market. Scouring all the various data regarding publically traded companies can be overwhelming at times. Once the investor becomes familiar with the basics, they may be able to dive in deeper and focus on the essentials. Creating a winning strategy may not occur overnight. There may be times when even the best crafted plan does not play out as expected. Being flexible and having the proper tools in place can help the investor see the clearer picture when markets get muddy.