Technical analysis is a tool or a process that uses market data to forecast an underlying asset’s likely future price movement such as a stock or currency pair. The principle underlying technical analysis’s validity is the idea that all market participant’s aggregate activities – which is buying and selling – accurately represent all relevant information…
Bollinger Bands: What Are They & How To Use Them?
Bollinger Bands are a technical indicator that can help traders to identify the volatility and trend of a security’s price. They basically consist of three lines: a simple moving average (SMA) and two bands above and below it that are based on the standard deviation of the price. The standard deviation is a measure of…
What Is Volume In Stock Market?
Volume in the stock market is an indicator which measures the number of stocks traded over a specified period of time. It indicates the level of activity and liquidity of a security. Volume can also help traders to identify the strength and significance of price movements. Since, Volume helps a trader to identify the strength…
What is Exponential Moving Average (EMA)?
Exponential Moving Average (EMA) is a lagging indicator. An Exponential Moving Average (EMA) is a type of moving average that gives more weight to the recent prices of a stock or an underlying asset. It is a technical indicator which helps a trader to keep track of the trend and momentum of the market. Unlike…
What Is Fibonacci Retracement? How is it Drawn?
If you are an active trader or an individual who is working in the stock market for a couple of years you would have noticed that the price of an underlying asset follows a certain pattern. In today’s article we are going to discuss about fibonacci retracement The pattern that I am talking about is…
What is Dow Theory?
Dow Theory is a method to analyze the stock market using the help of the analyzing the movements of different indices, such as Dow Jones Industrial Average and the Dow Jones Transportation Average. It was developed by Charles Dow who was the co-founder of the Wall Street Journal and the Dow Jones and the company. …
5 Trading Indicators Every Trader Should Know
What are indicators? Indicators in the stock market are mathematical calculations which are plotted on as lines on a price chart which can help traders and investors to identify certain signals and trends in the market. Indicators can be used by the trader and investors to filter out their trades which increases their winning accuracy. …
What Are Options?
Options are a derivative contract which is derived from a certain underlying asset. The underlying instrument can be stocks, indices, currency or any other security. Once, the meaning of option is understood we will look at what is an option contract. An option contract is a financial contract which gives an investor a right to…
What is the Relative Strength Index?
Relative Strength Index (RSI) is an oscillator which was developed by J Welles Wilder. RSI is an oscillator which tells an investor about the momentum in an underlying asset. The value of RSI lies between zero and one hundred. Relative Strength Index informs you about the overbought and oversold levels which means that if the…
10 Chart Patterns Every Trader Should Know
A chart pattern is a shape within a price chart which helps traders and investors to predict future prices of an asset. In order to understand and spot chart patterns may require some time but here are 10 commonly used chart patterns which will help you. Oftenly, chart patterns are used in a candlesticks chart…