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What is a Home, Legally-Speaking?
The laws concerning a legal residence or primary residence may come into play for purposes of insurance, state taxes, and business matters. Some people have secondary residences, some people choose to remain legal residents of one state while they inhabit another. It can be quite complicated and various statutes may apply, depending on the situation. It can matter for a mortgage loan, for local voting, for healthcare and for business: what is a home? Continue reading...
What is Exponential Moving Average?
Moving averages are important components of many technical indicators. The Exponential Moving Average (EMA) uses the closing prices of all the previous trading days for a given interval to calculate an average price from that for the period, but is weighted to give the most recent days more influence over the final number. The weighted averages are plotted in a line that helps traders follow trends. Continue reading...
What are Simple and Exponential Moving Averages?
Moving averages are important components of many technical indicators. A simple moving average determines the average of a range of closing prices for a security or index for a specific period of time. An exponential moving average is a moving average that gives more weight to the most recent data. Simple moving averages are not weighted for time the way that exponential moving averages are, which has the effect of snapping the chart to the most current information, while simple moving averages have lag. Continue reading...
How to use the MACD in trading?
Moving Average Convergence Divergence (MACD) is a frequently used momentum indicator composed of several moving average lines. A MACD line is plotted by using the exponential moving average (EMA) over 12-day periods and subtracting the EMA of 26-day periods. A “signal line” – the 9-day EMA – is then plotted on top of the MACD line. A histogram is also usually included to indicate the divergence between the signal line and the MACD. When the MACD and the signal line cross paths, these points of convergence are widely used as trading indicators that trends are starting or ending. Continue reading...
What is Weighted Average?
A weighted average is a calculation considers the relative importance or relevance of a piece of data. Weighted averages multiply numbers in the average by a predetermined factor, like time, that enhances the relevance given to the number. One example of a weighted average is the Exponential Moving Average (EMA), an alternative to the Simple Moving Average (SMA) line which gives greater weight to the more recent data. SMAs are effective in their simplicity, but their efficacy is most closely tied to how they are used. Continue reading...
What is the Advance/Decline Divergence Oscillator?
The advance/decline divergence oscillator (also called the McClellan Oscillator after its creators) tracks the rate of change in the advance-decline line (net advances). The AD line is formed from the Net Advances/Declines calculated daily at market close; this represents the proportion of stocks which advanced (increased) in price that day versus those which declined – the size of the difference is called the daily breadth. The advance/decline divergence oscillator can be applied to any group of stocks or exchange. Continue reading...
What is Endpoint Moving Average (EPMA)?
Moving averages are important components of many technical indicators. The Endpoint Moving Average (EPMA) is a popular method of plotting a line that uses linear regression instead of averages, which reduces the noise of market price activity and can reveal or follow trends. Compared to a simple moving average, this method hews more closely to data and lags less. A moving average line averages prices in a given time period (such as the 30 days leading up to each day), and plots that point on a chart; when connected, the collection of points becomes the moving average line. Continue reading...
What is swing trading?
Swing trading is active trading that is not frequent enough to be categorized as day-trading but generally follows short-term trends. Swing trading can describe long or short positions traded on upswings and downswings of a security or index, and these positions are generally held from one day to two weeks. Generally, these are going to be momentum investments which are entered into after there seems to be confirmation of a trend, and the positions are closed out when there seems to be confirmation that the trend has ended. Continue reading...
How to use Simple Moving Averages in trading
Investors and traders are in constant search of tools they can use to gain any possible advantages from shifting markets. Technical indicators are especially vital parts of any trader’s kit, and few indicators are as consistent (and dependable) as moving averages. A Simple Moving Average (SMA) is a technical indicator that can help traders determine whether a bull or bear trend will continue or reverse course. It typically adds up closing prices for a given time period, then divides that figure by the number of time periods used for the average. Continue reading...
Is there evidence that Adaptive Moving Averages lead to improved outcomes?
Unlock Your Trading Potential with Adaptive Moving Averages (AMAs)! 📈 Discover how AMAs adapt to market conditions, reducing false signals and enhancing profits. Learn about their benefits and the innovative ER concept. A game-changer in trading! 🚀 #TradingStrategies #AMAs Continue reading...
What is a Moving Average Ribbon?
A moving average ribbon is created by plotting many incremental moving average lines on top of the same price chart. The visual relationship of the moving averages can help reveal crossover points, which traders can use as trade signals. As with other crossover indicators, the shorter-term moving average lines will tend to move more than the longer-term ones, and the degree of momentum that the crossovers imply increases for moving average lines of lengthier look-back periods. Continue reading...
How to use the Chaikin Oscillator in trading
The Chaikin Oscillator is a volume indicator that can help traders discern if price movements are verified by changes in trading volume. When there are discrepancies, it can mean that prices are exhibiting overbought or oversold conditions. Before the Chaikin Oscillator, On-Balance Volume was the most popular indicator for the job. On-Balance Volume (OBV) is a popular leading indicator introduced in the 1960s by Joe Granville. OBV is a line built using differences between daily trading volume – in Granville’s estimation, the major driver of market behavior – adding the difference on days that the market or stock moves up and subtracting the difference on days when the market or stock moves down. It looks for instances of rising volume that should correlate with price movement, but price movement has not occurred; additionally, OBV can be used to confirm lag. Continue reading...
What is the method for buying stocks using a moving average?
Unlock the Power of Moving Averages in Stock Trading 📈📉 Explore the art of using Moving Averages to decipher market trends, with SMA & EMA insights. Learn the secrets of crossover strategies for sharper decision-making. Elevate your stock game now! #StockTrading #MovingAverages Continue reading...
What is market efficiency?
Market efficiency describes the degree to which relevant information is integrated into the price of a security. With the prevalence of information technology today, markets are considered highly efficient; most investors have access to the same information with prices and industry news, updated instantaneously. The Efficient Market Hypothesis stems from this idea. Efficient markets are said to have all relevant information priced-in to the securities almost immediately. High trading volume also makes a market more efficient, as there is a high degree of liquidity for buyers and sellers, and the spread between bid and ask prices narrows. Continue reading...
What is an introduction to swing trading?
Uncover the World of Swing Trading: A Comprehensive Guide 📈 Swing trading bridges day & trend trading, offering ideal profit windows of days to weeks. Learn key strategies from expert, Samantha Silberstein, to master stock selection, navigate market conditions, and leverage exponential moving averages. Take profits strategically and manage risks for a rewarding journey into swing trading. 💰💡 #SwingTrading #FinancialMarkets Continue reading...
What are seven effective strategies for quickly generating cash?
Facing a financial crisis? 💰 Discover 7 effective strategies to swiftly generate cash without taking unnecessary risks. From selling assets and odd jobs to unexpected sources like plasma donation, be prepared for any emergency. Explore smart solutions to ease your financial burden today! #EmergencyCash #FinancialRelief Continue reading...
What is technical analysis in trading?
Technical analysis is a method of evaluating the worth and probable future direction of security prices using charts and data concerning prices and volume. This is the counterpart to fundamental analysis, which looks at the physical operations of a company and their place in the market to determine value. Those who practice technical analysis are sometimes called “quants” or chartists because they believe that the most important information about a security will be found in the data on the price, volume, and the moving averages and volatility associated with them. Continue reading...
What is market disequilibrium?
Market Disequilibrium occurs when market and external forces combine to unbalance a market, creating inefficiency in the market in the process. A disequilibrium produces what’s called a “deadweight loss,” “welfare loss,” “excess burden,” or “allocative inefficiency.” As described by efficient market theory, the price fluctuations we see in market behavior are the market trying to find its truly efficient price and quantity – the theoretical point of equilibrium. Investors attempt to locate it using moving averages and other means of technical analysis. Continue reading...
Will My Spouse and Children Receive Social Security Benefits if I Die?
Spouses and children can and do receive social security benefits upon the death of a person who paid into the system. A spouse who is older than 60 will always be able to receive either a majority of the benefit that was (or would have been) paid to you, using their own age against the full benefit amount that was part of your benefit equation. Children, including dependent grandchildren, can receive a payment equal to 75% of your full benefit amount until they are about 18. Continue reading...
What Led to the Decline of J.C. Penney's Stock?
J.C. Penney, an iconic name in American retail, faces turbulent times. With its stock plummeting to historic lows and the shadow of competitors' failures looming, is there hope on the horizon? This analysis delves into the factors influencing J.C. Penney's stock trajectory, from economic challenges to internal strategies. Discover the company's financial maneuvers, its position in the broader retail landscape, and the potential paths it might take in the coming years. Whether you're an investor or just curious about the fate of a retail giant, this exploration offers insights into the complexities of the modern retail market. Continue reading...