## What is a Home Lien?

A lien is a legal filing through which a third party lays claim to certain assets, such as a person’s home, until an amount owed to them is paid. There are mechanic’s liens, judgment liens, and tax liens, any of which could be applied to a person’s home. A lien is a document serving as notice that a significant amount of money is owed to a third party and that certain assets of the debtor may be used to cover the obligation, becoming the property of the lien-holder if the debt is not paid in time. Continue reading...

## What is a support line?

A support line represents an estimation of where a price is likely to stop&nbsp;moving downwards, based on recent data and analysis methods. It is arrived at with different formulas for different indicator methods, but it is generally a line derived from&nbsp;moving averages&nbsp;and&nbsp;standard deviation which represents a lower level at which traders would expect a price to rebound back upwards. Several methods of&nbsp;technical&nbsp;and&nbsp;fundamental analysis&nbsp;plot a support line or two as part of a graphical representation of trends. Theoretically, a price will only&nbsp;deviate&nbsp;so far from its moving average before bouncing back toward the middle. Continue reading...

## What is a resistance line?

A resistance line is the inverse of a support line and represents the glass ceiling through which a&nbsp;security price&nbsp;has difficulty breaking through. Resistance lines are calculated as part of analysis methods which use&nbsp;moving averages&nbsp;and&nbsp;standard deviation, or similar calculations, to put a range of probability on the expected movement of a security price, with the resistance line representing the top of that range. Continue reading...

## What is the “Period Income” Option on Annuities?

The Period Income option or Guaranteed Period option on Annuities means that the entire balance, plus some interest, will be paid out to you in equal amounts over the course of a set number of years. This option may fulfill a specific need for income in a certain time of life. It used to be slightly more attractive to investors when interest rates were higher, but, today, the low interest rate environment does not give insurers enough time to generate interest for these sorts of payouts. Continue reading...

## What are Fibonacci Numbers/Lines?

Fibonacci numbers are part of the&nbsp;Fibonacci sequence, where the two previous numbers are added together to calculate the next number in the sequence. The ratio of two Fibonacci numbers is the Golden Ratio, or 1.61803398875, which has been used since ancient times as the perfect proportion in architecture and other design. The Golden Ratio is also known as Phi (pronounced “fee”). Because Fibonacci numbers are found throughout the natural world, they have been integrated into some traders’ strategies for market analysis. Continue reading...

## What is the Capital Market Line?

The Capital Market Line is a complex concept, but put simply, it is a calculation meant to give the investor/analyst a range of potential returns for a portfolio, based on the risk free rate and the standard deviation of the portfolio. The Capital Market Line is a part of the capital asset pricing model (CAPM) that solves for expected return at various levels of risk. It takes into consideration a portfolio’s risk assets and the risk-free rate. Continue reading...

## What is the security market line?

The Security Market Line (SML) is a visualization of the Capital Asset Pricing Model (CAPM) and shows the theoretical&nbsp;relationship between risk and return between securities and the entire market. The SML is plotted on a graph bound by an x-axis, which represents Beta (volatility&nbsp;above or below the market average), and a y-axis, which represents&nbsp;the rate of return. Beta&nbsp;is a volatility indicator that measures how many changes in price, and by how much, a security experiences over an amount of time. It describes whether the risk associated with a particular security is above or below the average of the market (or a more&nbsp;specific index), where 1 is a&nbsp;correlation&nbsp;with the market, and numbers above or below describe increased or decreased volatility, respectively. Continue reading...

## What are Fibonacci Fans?

Fibonacci Fans are a charting technique that combines traditional Fibonacci lines and Fibonacci channels. They use the Fibonacci levels in a radial way, drawing trendlines from a point of primary importance, such as a low or peak, to identify future points of&nbsp;retracement&nbsp;or&nbsp;extension. Some investors believe that, like many naturally occurring systems in nature, market behavior will exhibit some fractal-like forms that can be measured with Fibonacci sequence numbers and the Golden Ratio. Modern computing power has uncovered plentiful examples of the Golden Ratio in nature, from Nautilus shells to&nbsp;musical harmonics, as well as mathematical&nbsp;fractal&nbsp;patterns. Fibonacci numbers are related to the study of chaos theory, which seeks to find order in complex systems. Since the markets have so many variables, but no lack of data, they are an excellent place to search for&nbsp;Fibonacci patterns. Continue reading...

## What is an Account Number?

An account number is a serialized identifier which is ascribed to a particular account holder or account at a financial institution, retailer, or other entity. Account numbers may include letters or numbers and may be of various length, but they usually exceed 5 characters. An account number is a way for a company or organization to uniquely identify the accounts associated with each individual customer. Continue reading...

## What are Fibonacci Clusters?

Fibonacci lines, retracements, and extensions are used by chartists to identify possible future support and resistance levels, as well as areas where there may be reversals. Investors can use this information to put&nbsp;hedges&nbsp;or speculative bets in place, if they believe that, like many naturally occurring systems in nature, the market behavior will exhibit some fractal-like forms that can be measured with Fibonacci sequence numbers and the Golden Ratio. Continue reading...

## What is Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities?

IRS Link to Publication — Found Here Publication 515 serves as a guide for employers with regards to the tax withholding requirements for nonresident alien employees. It also addresses income being paid to foreign corporations and partnerships, foreign trusts and estates, and foreign governments and international organizations. Income paid by companies to employees who are not US residents will have to follow regulations including withholding and filing requirements outlines in this Publication and the referenced forms. Continue reading...

## What is IRS Publication 54, Tax Guide for US Citizens and Resident Aliens Abroad?

IRS Link to Publication — Found Here Publication 54 is a guide for those earning income in a foreign country. There are several tax deductions which might be available and several forms and filing practices that one will need to be familiar with when taking employment elsewhere. US Citizens and long term resident green card holders will need to let the IRS know how much they are making even if they are employed in a foreign country. Continue reading...

## What is Endpoint Moving Average (EPMA)?

Moving averages are important components of many&nbsp;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&nbsp;simple moving average, this method hews more closely to data and lags less. A&nbsp;moving average line&nbsp;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 are Fibonacci Extensions?

In Fibonacci line analysis, chartists attempt to predict how far a trend will go in a single direction, despite some minor pullbacks that do not break the overall, stronger trend (behavior known as&nbsp;retracements). Trends can be upward or&nbsp;downward&nbsp;and still experience this phenomenon. Fibonacci extensions are estimations of the next high after an initial push and retracement, using&nbsp;Fibonacci sequences&nbsp;as guidelines. Some investors believe that, like many naturally occurring systems in nature, mark... Continue reading...

## What is a Market Order?

A market order is an order to execute a trade (buy or sell) immediately at whatever the current market price. If an investor places a market order after hours, for instance, the order will be filled at the market’s open wherever the price of the security is. Placing a market order, also known as an “unrestricted order,” means the person trading the security is more concerned with timely execution of the trade than they are the actual price. If a market order is placed for a security that has very high volumes and is a common stock, the market order is likely to be filled right away. Continue reading...

## What is a Limit Order?

A Limit Order is a type of order to buy or sell a security, where the trader wants to set a specific price for the trade, or any price that’s better than the price set. From a buy and sell standpoint, a buy limit order would be designed to have the trade executed at the designated price, or any price lower than that. A sell order is just the opposite, where the trader hopes to execute the trade at a minimum set price. Limit orders typically have a period of time before they are canceled, if the designated price is not reached by a certain period. Continue reading...

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## How to Trade Moving Averages: The Golden Cross?

The Golden Cross is a breakout candlestick pattern formed when the short term 50-day moving average for a security exceeds its long term 200-day average, backed by high trading volumes. Investors typically interpret this crossover as a harbinger of a bull market, and its impact can reverberate throughout index sectors. The longer time horizons tend to increase the predictive power of the Golden Cross. As seen in the chart in this example, a trader may view the moment when a 50-day moving average (blue line) crosses above a 100-day or 200-day moving average (red line) as a bullish sign for the stock or security. A trader may consider taking a long position in the security, or perhaps explore call options to take advantage of the potential upside. Continue reading...

## What is a Home Equity Line of Credit (HELOC)?

Much like a Reverse Mortgage or Second Mortgage, a HELOC gives homeowners the ability to convert their home equity into cash. A HELOC is a line of credit secured by the equity in your home. Homeowners can choose when to use the funds, and there are repayments due according to a schedule in the contract. It functions as a revolving line of credit, similar to a credit card with large limits. Some people find themselves interested in a HELOC if they have a large balloon payment due on a loan, perhaps even their home mortgage loan. They are also sometimes used as a debt consolidation tool to pay off credit cards and other outstanding debts (but, for this, fixed-rate home equity loans are more popular). Continue reading...