Articles on Stock markets

News, Research and Analysis


Popular articles
Table of Contents
Help Center
Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate Basics
What are Simple and Exponential Moving Averages?

What are Simple and Exponential Moving Averages?

Simple moving averages are not weighted for time the way that exponential moving averages are. A simple moving...
What are Resistance and Support Levels?

What are Resistance and Support Levels?

These levels do not have to be horizontal; the resistance and support levels can have either a positive or negative...
How to use Bollinger Bands in trading

How to use Bollinger Bands in trading

Bollinger Bands are used in technical analysis to discern what range a security is likely to trade within
How to use the MACD in trading

How to use the MACD in trading

MACD is an acronym for Moving Average Convergence Divergence. It is a momentum oscillator primarily used to in technical analysis to trade trends
What does overbought mean?

What does overbought mean?

Overbought is a term used when analysis doesn't seem to justify the buying behavior of investors past a certain threshold
What does Oversold mean?

What does Oversold mean?

Oversold describes a situation in which a security has an inherent value greater than it's price, due to low demand
How to use the  Accumulation/Distribution in trading

How to use the Accumulation/Distribution in trading

The Accumulation/Distribution Indicator follows the trading volume into or out of a security and shows the degree of correlation between this trading volume and the price
What is the KAMA (adaptive moving average)?

What is the KAMA (adaptive moving average)?

The adaptive moving average (KAMA) attempts to cancel out the noise of market volatility and inefficiency using a ratio
What is the Advance/Decline Divergence Oscillator?

What is the Advance/Decline Divergence Oscillator?

The advance/decline divergence oscillator tracks the rate of change in the advance-decline line. McClellan Oscillator
How to use the Advance/Decline Ratio in trading

How to use the Advance/Decline Ratio in trading

The Advance/Decline Ratio places the number of advancing stocks over the number of declining stocks for a day or time period, and the result is a ratio
What is Consensus?

What is Consensus?

Consensus is a measure of investor beliefs which are in-line with one another, and can be determined by strong trends
What is Directional Movement Index (DMI)?

What is Directional Movement Index (DMI)?

DMI combines average directional index (ADX), plus directional indicator (+DI) and minus directional indicator (-DI)
What is Dow Theory?

What is Dow Theory?

Dow Theory is probably the longest-standing analysis methodology still used in modern finance
What is Endpoint Moving Average (EPMA)?

What is Endpoint Moving Average (EPMA)?

The EPMA uses linear regression instead of averages to plot a line which reduces the noise of market activity
What are Envelopes and Trading Bands?

What are Envelopes and Trading Bands?

Envelopes and trading bands help traders put filters on their decisions to trade, by setting limits on movement
What is Exponential Moving Average?

What is Exponential Moving Average?

Exponential moving averages are an attempt to follow trends more closely by giving more recent information more weight
What are Fibonacci Numbers?

What are Fibonacci Numbers?

Fibonacci numbers are part of a sequence where the ratio of two neighboring numbers is the Golden Mean
What is the High-Low Index?

What is the High-Low Index?

The High-Low Index is an observation of the number of stocks which hit 52-week highs or lows in the current day
How to use Stochastics in trading

How to use Stochastics in trading

Stochastics is a methodology for technical analysis as following the “speed or the momentum of the price”
What is the Positive Volume Index?

What is the Positive Volume Index?

The Positive Volume Index track increases in trade volume for an index or security and the changes in price on those days
What is the Negative Volume Index?

What is the Negative Volume Index?

The Negative Volume Index (NVI) shows what days or weeks saw decreases in trading volume and it compares changes in price
How to use the Relative Strength Index (RSI) in trading

How to use the Relative Strength Index (RSI) in trading

The Relative Strength Index (RSI) is used by traders to assess the price momentum (recent trading strength) of a stock or other security.
What is R-Squared?

What is R-Squared?

R-Squared is a percentage measurement describing how much of a security’s movement is in correlation with its benchmark
What is Sharpe Ratio?

What is Sharpe Ratio?

Sharpe Ratio reduces the two measures of mean and variance into one value that to indicate how much return is expected
What is Unlevered Beta?

What is Unlevered Beta?

Unlevered beta is a measurement of the Beta of a company when the effects of debt (leverage) are removed
What is Volume Weighted Average Price (VWAP)?

What is Volume Weighted Average Price (VWAP)?

Volume Weighted Average Price (VWAP) is a calculation which brings the influence of volume into consideration when trading
What is Weighted Average?

What is Weighted Average?

A weighted average can be applied to many calculations, and it multiplies numbers in the average by a factor
What is the Absolute Breadth Index?

What is the Absolute Breadth Index?

ABI is an indication of the size of market movement, regardless of direction
How to use the On-Balance Volume in trading

How to use the On-Balance Volume in trading

Traders often look for 'harmony' in the movements of the On-Balance Volume (OBV) and a security's price
How to use the Aroon Indicators in trading

How to use the Aroon Indicators in trading

The Aroon-Up and Aroon-Down values are compared to determine if there is a trend emerging. Aroon looks at the latency between highs for certain rolling time periods
What are Fibonacci Channels?

What are Fibonacci Channels?

Fibonacci Channels use Fibonacci numbers and proportions to define possible places where reversals will occur
What are Fibonacci Clusters?

What are Fibonacci Clusters?

Fibonacci Clusters are the consolidated information which will reveal the primary overlapping data from the cluttered chart
What are Fibonacci Extensions?

What are Fibonacci Extensions?

A Fibonacci Extension is the prediction of a trend’s extent after an initial push and a retracement has been seen
What are Fibonacci Fans?

What are Fibonacci Fans?

Fibonacci fans are drawn from a peak or a trough, using that point as the radial origin from which the fan lines are drawn
What are Fibonacci Numbers/Lines?

What are Fibonacci Numbers/Lines?

Fibonacci numbers are part of the Fibonacci sequence, in which the next number in the sequence is the sum of the previous two
What are Fibonacci Retracements?

What are Fibonacci Retracements?

Fibonacci Retracements are places where a strong trend is set back temporarily by a smaller reverse trend (retracement)
Who are Chartists?

Who are Chartists?

Chartists are theorists who attempt to find parameters and algorithms that can offer efficient trading signals and profits
How to Trade Moving Averages: The Golden Cross

How to Trade Moving Averages: The Golden Cross

The Golden Cross refers to a breakout candlestick pattern when the short term 50-day moving average for a security exceeds its long term 200-day average
How to Trade Moving Averages: The Death Cross

How to Trade Moving Averages: The Death Cross

The Death Cross is a chart pattern indicating when a security’s short-term moving average crosses underneath its long-term counterpart
How to use the Accumulative Swing Index in trading

How to use the Accumulative Swing Index in trading

The Accumulative Swing Index is a line representing the running total of an oscillator called the Swing Index. These tools were intended to help with swing trades
How to use Andrew's Pitchfork in trading

How to use Andrew's Pitchfork in trading

Alan Andrews designed Andrew’s Pitchfork as a way to define a trend with support and resistance lines around a median line
How to use the Arms Index (TRIN) in trading

How to use the Arms Index (TRIN) in trading

The Arms Index is also called the Trin (short for “Trading Index”) because it seeks to indicate overbought or oversold conditions by serving as an index of trading activity
How to use the Chaikin Oscillator in trading

How to use the Chaikin Oscillator in trading

The Chaikin Oscillator is a volume indicator that can help traders discern if price movement is verified by changes in trading volume
How to use the Detrended Price Oscillator in trading

How to use the Detrended Price Oscillator in trading

The Detrended Price Oscillator (DPO) is a relatively uncomplicated tool of analysis that can be used to simplify a chart and identify conditions ripe for buying or selling
What is Ease of Movement?

What is Ease of Movement?

The Ease of Movement (EMV) indicator is a metric for the degree to which prices can be moved by a lower volume of trading
What is a Moving Average Ribbon?

What is a Moving Average Ribbon?

A moving average ribbon is created by plotting many incremental-length moving average lines on top of the same price chart
How to use a Gann Fan in trading

How to use a Gann Fan in trading

W.D. Gann developed a suite of technical analysis tools around the 1930s, with Gann Fans being among the most essential
What is the Herrick Payoff Index in Trading

What is the Herrick Payoff Index in Trading

The Herrick Payoff Index is one of the only indicators to combine price, volume, and open interest data for analysis
How to use Open Interest in trading

How to use Open Interest in trading

Open interest, or OI, can be a very important number for futures, options, and other derivative markets. Open Interest is technically more like the number of outstanding shares
How to use Momentum Indicators in trading

How to use Momentum Indicators in trading

When the momentum indicator crosses above the zero line it could be an indication that the security has upward momentum and could chart a higher course
Day trading with RSI

Day trading with RSI

Day trading with RSI is a momentum indicator that fluctuates between 0 and 100. The higher the number, means the higher the momentum. The gains and losses over time are averaged.