The Elliot Wave theory essentially uncovers larger trends and investor sentiment by smoothing and “zooming out” from market price action.
Elliot Waves zoom out on market price action by using larger-interval moving average and smoothing out price information to reveal larger trends. He was one of the first to attempt such a theory, and his foundations may have contributed to the use of Fourier Analysis and Fibonacci Sequences in market analysis.
The idea that there are larger trends that can be used as a basis for analyzing current market movements is certainly popular in technical trading, so there is substantial merit to the Market Waves theory, especially as a foundational idea.
He also gave a lot of attention to behavioral economics, and attributed a lot of weight to investor sentiment, which is a popular area of research again today.
The “Shanghai” is an index measuring all shares that are traded on the Shanghai Stock Exchange (China)
The Ex-Date is for a stock indicates the last date of the month where a dividend is payable
A stop-loss order will name a price below (above) the market price on a long (short) position, where a sell order will trigger
The Relative Strength Index (RSI) is used by traders to assess the price momentum (recent trading strength) of a stock or other security.
A merger is the voluntary melding of two companies into one, when the owners believe the change is mutually beneficial
Accommodation Trading is when two traders enter into a non-competitive trade agreement which disregards the current price
Before Lehman Brothers and Bear Sterns, probably the most well-known and publicized bankruptcy was the Enron scandal
Simply put, insider trading is the crime of trading in a company’s stock based on information not available to the public
Fixed income funds, also known as bond funds, invest primarily in bonds, but might also include some preferred stock...
There are two main ways to get exposure to other currencies: you can buy them in the open market (FOREX) or in ETFs