Support and resistance lines are technical analysis tools predicting where an asset’s price will tend to stop and reverse. Without breaking through, multiple touches of the resistance area, often accompanied by high volume, denote these levels. The concept of support …
The relative strength index (RSI) is a technical analysis momentum oscillator that indicates potentially overbought and oversold conditions based on an asset’s recent closing price changes over a trading period. The RSI oscillates between zero and 100 and is considered …
Money. Power. Greed. Corruption. These are some of the core elements that often appear in movies about the stock market. It’s no surprise that films about the stock market – the professions, people, and events around making (and losing) astronomical …
Open interest is the number of unsettled outstanding derivative contracts. Each contract must have a buyer and a seller. It is considered open when a buyer or seller initiates a contract, but a counterparty does not close it by taking …
Trend following or trend trading is a systematic trading style that attempts to profit from trends in the market. Trend following buys when an asset’s price rises and goes short when an asset’s price falls. Trend following is ideal for …
A lease is a contract where a Lessor (owner) permits a Lesse (user) to utilize an asset for a particular period. Financing and operating leases are essentially a form of financing and need to be considered as such when valuing …
A pattern day trader (PDT) is a Financial Industry Regulatory Authority (FINRA) designation for those who make four or more day trades in a margin account over five days when the transactions account for more than six percent of total …
A stock split is a decision by the company’s board of directors to increase a company’s number of shares, causing a decrease in the stock price and making shares more affordable. A stock split does not change a company’s value …
The Turtle Traders experiment was conducted in the early 1980s by Richard Dennis and William Eckhardt to see whether anyone could be taught how to make money trading. The experiment involved taking a random group of people, teaching them a …
Year-over-year (YoY) is a method of analyzing data between two comparable periods on an annualized basis. Understanding how to calculate and what YoY values are can help you interpret financial and economic data more effectively. But it’s not enough to …
