Currency Momentum Factor: Making Money Move

The currency momentum factor is a widely observed feature that many exchange rates trend on a multi-year basis. The momentum factor exists across asset classes, including equities and bonds, and it is a widespread phenomenon that has been researched well by many academicians, statisticians, and experts. While the momentum strategy in equity and bond markets …

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Stock Due Diligence: A Beginner’s Checklist

Due diligence before a potential stock investment involves a thorough investigation of several factors impacting its future performance. This article highlights how to conduct due diligence using a checklist to tick off the relevant questions about the fundamental aspects of a company you have picked. When you plan to buy a house, car, or smartphone, …

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Three Black Crows Candlestick Pattern

The three black crows Japanese candlestick pattern works in the stock market but occurs too infrequently in the forex and crypto markets to produce statistically significant results. A trader can expect to gain $6.20 on average per $100 risked using an optimal risk-reward ratio. But what would you think if I told you that there’s a better …

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Two Crows Candlestick Pattern

The two crows Japanese candlestick pattern does not work in the stock market, and it occurs too infrequently in the forex and crypto markets to produce statistically significant results. A trader can expect to lose $16.50 on average per $100 risked using a 1:5 risk-reward ratio optimized by profit per bar. But what if I …

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Investor Day: A Guide for Retail Investors

An investor day is an important event for investors in publicly listed companies. The management and the investors interact with each other and discuss the company’s future. The primary factor defining the relationship between a public company and its investors is “Trust.” This element of trust keeps the shareholders from pulling out their invested capital …

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Post Earnings Announcement Drift (PEAD)

Post Earnings Announcement Drift (PEAD) is the tendency of a stock’s abnormal returns to move towards the direction of an earnings surprise for nearly 60 days after the earnings announcement. PEAD is also known as the SUE effect or standardized unexpected earnings. SUE is the difference between actual and expected earnings, measured by the standard …

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History of Technical Analysis

Technical analysis is a methodology that uses past price and volume data to predict future prices. Here is a chronicle of the history of technical analysis and the significant events that have led to its evolution. When we set out to analyze market movements, the two most essential tools are fundamental and technical analysis. Fundamental …

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Time-Weighted Average Price (TWAP)

Time-weighted average price (TWAP) calculates the weighted average price of the security over a particular time period. TWAP is often implemented as an order execution strategy to execute massive trades by breaking them into equal parts over a trading period to minimize slippage and signaling. What Is TWAP? TWAP or Time-weighted Average Price is a …

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Volume-Weighted Average Price (VWAP)

Volume Weighted Average Price (VWAP) is the average trading price of an asset throughout the day using price weighted by volume. It provides traders an insight into the price trend where volume is highest. Institutions and traders use VWAP to identify buy and sell areas and to help gauge market sentiment. What Is VWAP? VWAP, …

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