Articles on Stock markets

Technical analysis is a method of evaluating the worth and probable future direction of security prices using charts...

Technical analysis is more popular than ever, because not only can we see and share this information more quickly, but we ca even automate our trades

Average Directional Index is a technical indicator which plots the strength of a trend in a security. Trend traders can use the ADX to spot and confirm trends

Alpha is a risk ratio which measures gains or losses relative to a benchmark. Alpha and Beta are terms normally used in trading

Beta is a measure of how closely an investment follows movements in the market as a whole, or when examining mutual funds

Delta is a multiple which can quickly tell an options investor how much the price of their option will change per share in trading

Delta hedging is bringing the delta of a portfolio to zero, or closer to it, by purchasing financial instruments like options

Bear markets are loosely defined as periods when the market experiences declines in magnitude of 20% or more in stock trading

Bull markets are periods of sustained confidence and growth, with share prices increase in a trend over time in stock trading

Simply put, a downtrend occurs when the successive peaks of a security's price are trending downward in stock trading

Market Equilibrium occurs when supply and demand are in balance, and a trend is relatively horizontal or sideways in trading

Equilibrium is where a price is stable because the supply and demand have balanced out. Disequilibrium is all the rest in trading

A market correction is typically a sharp, sudden decline in stock prices, where they fall in value by around 10% - 20%

Net long means to own more long positions than short positions. Being long means to own a security or derivative

A Pivot Point is calculated by taking the average of the high, low, and close from a previous period in technical analysis for trading

The Security Market Line (SML) is a visualization of the Capital Asset Pricing Model (CAPM) and shows thee relationship between risk and return in trading

The Simple Moving Average (SMA) is a line which plots the average closing prices of a security or index over a set number of days for trading

Spread has several meanings in finance but the most general usage is between the bid and the ask prices for a security in trading

A support line represents an estimation of where a price is likely to stop moving downwards, based on recent data in technical analysis

A resistance line is the glass ceiling through which a security price has trouble breaking in technical analysis

Trend analysis attempts to identify momentum in the market early enough to profit from increases or decreases

Leading indicators are economic or price data which have some degree of correlation with a movement in the market