Moneyoga's index page has certain distinguishing parts:
Index Page Summary Panel
At the top of each index page, you will see a summary/navigation panel, such as this:
The panel is composed of (from left to right):
- Price quote & date stamp for the index, and the current month future contract (if available).
- NSE Code for the index, and links to F&O pages at Moneyoga (if available).
- A mouse-over link
to see which stocks constitute this index.
- Link to a table that shows index constitutents sorted by percentage return - over 1 week, 1 month & 1 year.
- Link to a table that shows index constitutents sorted by EPS growth & P/E ratio. We highlight
stocks whose P/E ratio is less than the % EPS Growth; these stocks might be candidates for further price appreciation.
- Link to a chart that shows index constitutents plotted against the index - to understand relative price performance.
- Link to this Help Page.
Index Constituents
To see the list of stocks that form this index, move your mouse over the Index Constituents
link, like so:
Index Price Chart with Indicators
Prices in the index pane are represented in a candlestick format, colour coded for simplicity. A green candle indicates
that the close was higher than the open, and a red candle the other way around.
You will notice some green and
some red bands on the price charts. These are trend signal bands that are generated from the MACD
(explained later).
A red band indicates that the MACD was bearish in the period, and a green band that it was bullish. The lack of a band
indicates no signal in the MACD. These bands instantly tell you how good the indicator has been for the index,
and also where the signals have been strong. MACD is a trend indicator that usually provides a signal
after a trend is established.
Apart from the bands there are three Simple Moving Averages (SMA) that are shown as smoothed lines
on the charts. These are the 20 day SMA, the 50 day SMA and the 200 day SMA. These are again indicators
of index strength to buy a index you should check whether it has stayed above it's moving averages.
Right above the index chart, the High, Low and Last price of the entire period displayed are shown.
If you move over your mouse over any particular day, the Open-High-Low-Close values of that day are displayed as a tip, like so:
Certain technical indicators like MACD, RSI, Stochastics etc. are also provided, in boxes that display their current value. A green box
shows a bullish value, and a red box indicates a bearish value. A yellow box gives no meaningful signal.
For instance, when an index is above it's 20-sma, the 20-sma box will show in green, otherwise it will stay red. RSI (Relative Strength Index) on the other hand
is only bearish below 20 and bullish above 80 - for the middle range it does not provide a signal.
MACD
Moving Average Convergence/Divergence (MACD) is a popular trend indicator used alongside with charts.
Click here for an
excellent, detailed explanation.
In brief, the MACD is an indicator that analyses trends by using two moving averages. We have chosen the standard
12 day and 26 day averages to create the diagram. The black line is the difference between the 12 day and 26 day moving averages,
and the red line is its 9 day exponential moving average (EMA) - also called the signal line.
Bullish trends are indicated by the MACD when it is above the zero line, and higher than the signal line. Another bullish trend is when
the MACD crosses over the zero line.
What you see in yellow is histogram of difference the MACD values and the
9 day EMA signal.
Relative Strength Chart
The relative strength chart at the bottom of each index page plots the index versus all its constituent stocks.
The chart begins at January 2007, with all prices normalized to 100. If the index has doubled year-to-date, you should
see it currently at 200; similarly, if the stock dropped by 30%, it should be at 70.
The 200 & 70 values are percentages, not actual prices/values. Also, the interpretation of such a chart
would be that the index has significantly outperformed the constituent stock over 2007.