Dictionary

VIndex: Compute on both technical and fundamental strength. It is the overall score for investors that looks at technical and fundamental for investment ideas. Higher/lower VIndex score represents the current state of stock has a stronger bullish/bearish trend with stronger/weaker fundamental at that particular moment. VIndex value is between 0 – 5.

TIndex: Compute purely on technical movement, volume, and quantitatively based on historical data. Higher/lower TIndex score represents the current state of stock has a stronger bullish/bearish sign at that particular moment. TIndex value is between 0 – 5.

FIndex: Compute purely on the fundamental performance of stocks based on historical financial data. Higher/lower FIndex score represents the stock strength based on growth, earnings, dividends, debt, assets is stronger/weaker at that particular moment. FIndex value is between 0 – 5.

Call: Four types of calls at the end of each trading day. Buy indicates short to mid-term long/buy with low risk to collect or long for a share. ST buy indicates short term buy with higher risk exists to collect or long for a share. Hold indicates no action to buy or sell, suggest to stay aside and monitor. Sell indicates the action to sell or short. All the calls we provided is based on trend following strategy. Users with different strategies may use this call to customize into your current method to trade/invest. For example: value investor may want to collect when the call is HOLD instead of the BUY call when the stock price starts to move up.

Fair Value: Compute based on Benjamin Graham's classic formula where Value = EPS X (8.5 + 2g) where g = growth of the stock and EPS = earnings per share. Fair value only computes for stock with positive EPS. Benjamin Graham’s way to calculate fair value is an aggressive way for growth stocks and thus, it is advisable to use it with a safety margin such as use the fair value with a 20 ~ 30% discount.

PE: Price to earnings ratio or Price/EPS. Higher, in general, indicates overvalue and lower indicates undervalue. It has to compare with other stocks in the same industry for comparison.

PEG: Peter Lynch's famous investment rule. Compute with PE/ (growth rate) where growth rate is 5 years EPS growth (historical) of a stock. 1 is considered fairly value, less than 0.8 is considered undervalue and 1.3 above is considered overvalue.

PEGY: It is a modified formula from PEG with the inclusion of dividend yield. The formula is PE/ (growth rate + yield). It is useful for a mature company with a low growth rate but with a higher dividend yield.

Q/Q: Quarter over quarter growth, is a comparison of earnings of the latest quarter with the previous quarter. For example, 2015 Q2 vs 2015 Q1 growth.

QoQ: Quarter on quarter growth, is a comparison of earnings of the latest quarter of the current financial year with the same quarter previous financial year. For example, 2015 Q2 vs 2014 Q2 growth.

YoY: Year-on-year growth, is a comparison of earnings of the current financial year with the previous financial year. For example, FY 2017 vs FY 2016 growth.

EPS: Earnings per share or earnings/outstanding common shares

DPS: Dividend per share or dividend/outstanding common shares

Yield: DPS/Price in percentage

NPM: Net profit margin

CPS: Cash per share or total cash flow/outstanding common shares

BVPS: Book value per share or book value/ outstanding common shares

ROE: Return on Equity

ROA: Return on Asset

ROI: Return on Investment

P/BV: Price over book value ratio

P/C: Price over cash ratio

D/E: Debt to equity ratio

MACD: Moving average convergence divergence has MACD line and the signal line. The MACD Line is the 12-day Exponential Moving Average (EMA) less the 26-day EMA of the closing price. A 9-day EMA of the MACD Line is plotted with the indicator to act as a signal line and identify turns. When MACD line cross above the signal line, a golden cross forms. When MACD line cross below the signal line, a death cross formed.

RSI: Relative Strength Index has calculated the ratio of the sum of gains vs the sum of losses over 14 days period. Over 70 is overbought and below 30 is oversold.

MFI: Money Flow Index oscillator that uses both price and volume to measure buying and selling pressure over 14 days period. Over 80 is overbought and below 20 is oversold.

STOCH: Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over 14 days of periods. A 14-period %K would use the most recent close, the highest high over the last 14 periods, and the lowest low over the last 14 periods. %D is a 3-day simple moving average of %K. Over 80 is overbought and below 20 is oversold.

ATR: Average True Range is based on 14 days period. The first TR value is simply the High minus the Low, and the first 14-day ATR is the average of the daily TR values for the last 14 days. ATR is not a directional indicator.

Bollinger Band: Volatility bands placed above and below a moving average, based on the standard deviation. The bands widen when volatility increases and narrow when volatility decreases. The middle band is a simple moving average that is set at 20 periods. The outer bands are set 2 standard deviations above and below the middle band.

Moving Average: A simple moving average is formed by computing the average closing price of a stock over a specific number of periods. MA 20 is usually for a short term, MA 50 for the middle-term, and MA 200 is usually for a longer term trend.