What is a Point and Figure (P&F) Chart? A Point and Figure (P&F) chart is made up of multiple columns of X’s that represent increases in a security’s price and O’s that represent decreases in price. A column of X’s is always followed by a column of O’s, and vice-versa. The chart is composed of...
What is a Death Cross? The death cross is a chart pattern that indicates the transition from a bull market to a bear market. This technical indicator occurs when a security’s short-term moving average (e.g., 50-day) crosses from above to below a long-term moving average (e.g., 200-day). The chart below shows a death cross occurring...
What is the Relative Strength Index (RSI)? The Relative Strength Index (RSI) is one of the most popular and widely used momentum oscillators. It was originally developed by the famed mechanical engineer turned technical analyst, J. Welles Wilder. The RSI measures both the speed and rate of change in price movements within the market. Source...
What is a Ten Bagger? Ten bagger refers to an investment that generates a return of ten times the amount of the initial investment, i.e., a 1,000% return on investment (ROI). The term 10 bagger was popularized by famous Wall Street investor Peter Lynch, who borrowed it from baseball, where additional base hits are also referred...
What is the VIX? The Chicago Board Options Exchange (CBOE) created the VIX (CBOE Volatility Index) to measure the 30-day expected volatility of the US stock market, sometimes called the “fear index”. The VIX is based on the prices of options on the S&P 500 Index and is calculated by aggregating weighted prices of the...