How to Read Stock Charts If you’re going to actively trade stocks as a stock market investor, then you need to know how to read stock charts. Even traders who primarily use fundamental analysis to select stocks to invest in still often use technical analysis of stock price movement to determine specific buy, or entry,…
Investing for Beginners Here it is! – That thrilling (and insightful) guide to investing for beginners that you’ve been dreaming about finding all your life. Well, perhaps we’ll leave “thrilling” to your judgment. However, we are quite confident that you’ll become more than just a little excited when you learn the truth about the wide…
What is the TRIN Indicator? The TRIN indicator, also known as the ARMS index because it was developed by Richard Arms, is functionally an oscillator-type indicator that is primarily used to identify short-term overbought or oversold conditions in the stock market. It does this by comparing advancing versus declining stocks, along with advancing versus declining…
What is ADX Indicator? The Average Directional Movement Index (ADX) was developed by famed technical analyst Welles Wilder as an indicator of trend strength. As a commodity trader, Wilder developed the indicator for trading commodity futures. However, it has since been widely applied by technical analysts to virtually every other tradeable investment, from stocks to…
What is the MACD Oscillator? The Moving Average Convergence Divergence (MACD) oscillator is one of the most popular and widely used technical analysis indicators that traders and analysts use to gauge momentum in markets. Traders and analysts use a variety of technical indicators to spot trends in the market, anticipate potential shifts in trading, and, ultimately to…
What are Speed Lines? The technical analysis tool of speed lines was developed by Edson Gould, a technical analyst who became quite well-known for making several accurate stock market calls during the 1960s and 1970s. They are sometimes referred to as “speed resistance lines,” however, that moniker is somewhat misleading since the lines are designed…
The McClellan Oscillator Every trader and analyst relies on, or studies, different technical indicators to help them play the market to their advantage. Indicators are often grouped into different categories according to how they measure different things. In the case of the McClellan Oscillator, it belongs to a group known as momentum indicators, which are…
What is Bond Pricing? Bond pricing is an empirical matter in the field of financial instruments. The price of a bond depends on several characteristics inherent in every bond issued. These characteristics are: Coupon, or lack thereof Principal/par value Yield to maturity Periods to maturity Alternatively, if the bond price and all but one of…
What is a Trading Floor? A trading floor refers to a literal floor in a building where equity, fixed income, futures, options, commodities, or foreign exchange traders buy and sell securities. Traders buy and sell securities on behalf of clients, or on behalf of the financial firm which employs them. The trading floor of an exchange…
What is the Greater Fool Theory? The Greater Fool Theory simply states that there will always be a “greater fool” in the market who will be ready to pay a price based on higher valuation for an already overvalued security. Markets are affected by a lot of irrational beliefs and expectations of market participants. Based…
