Articles on Stock markets
News, Research and Analysis
What are Fibonacci Numbers/Lines?
Fibonacci numbers are part of the 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.
Modern computing power has uncovered plentiful examples of the Golden Ratio in nature, from Nautilus shells to musical harmonics, as well as in mathematical fractal 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 Fibonacci patterns. Fibonacci techniques are similar in many ways to Elliott Wave Theory, which uncovers larger trends and investor sentiment by smoothing and “zooming out” from market price action via using larger-interval moving average.
Fibonacci arcs and lines are drawn as overlays on price charts, and some analysts use them as the most likely places of support, resistance, and retracement. While charts will most often not adhere completely to the Fibonacci lines, and only certain ones seem to correlate, there may be some empirical relevance to this type of analysis.
But Fibonacci filters for trading signals are, like all technical indicators, imperfect at best. The use of Fibonacci lines in trading is still in its early stages, but ever-growing computing power available to traders increases their ability to find the common threads that will make this investment theory more usable, accurate, and reliable. These include artificial intelligence services from Tickeron, which provide traders with powerful ways to evaluate trade ideas, analyze signals, and provide key confirmation to help investors make rational, emotionless, and effective trading decisions.
What is an ETF? Definition
ETF screener & database, analysis, and ratings. ETFs are a basket of securities that you can buy or sell through a brokerage firm on a stock exchange.
What are the contribution limits for my Roth 401(k)?
Roth 401(k) contributions have the same limits as regular 401(k) contributions. Which, in 2016, is $18,000
How Can I Establish a SIMPLE IRA?
A SIMPLE IRA must be established by an employer with fewer than 100 employees
What Should I Do With a Lump-Sum Distribution From My Cash-Balance Plan?
Lump Sum distributions can allow you to invest according to your preferences, but could also be spent in a short period
What is the Symmetrical Triangle Bottom (Bearish) Pattern?
The Symmetrical Triangle Bottom pattern forms when a stock’s price fails to retest a high or a low and forms two trends
What is the Dead Cat Bounce (Bearish) Pattern?
The Dead Cat Bounce pattern appears when a currency pair's price falls quickly but has a temporary “v-shaped” recovery
What is Collateral?
Collateral is an asset/property that a borrower commits to a lender, which will be forfeited if the borrower defaults
AA+/Aa1 — credit rating
On the spectrum of creditworthiness ratings that come from firms like Moody’s and S&P, a rating of AA+/Aa1 is very good
What does open interest mean?
Open interest is a measurement of the outstanding open positions in a derivative security. Strong open interest means high liquidity
What is the role of asset allocation in my investments?
The single best control mechanism over the performance of your investments is maintenance an asset allocation strategy