An oscillator is a technical indicator that is used to help determine over bought/sold conditions or to confirm the strength of a trend. Oscillators use a scale between 1 and 100 that smooths out prices using price averages over a give time frame. Oscillators are usually used in conjunction with other technical indicators to help […]
In markets, all times of day are not created equal. We know the open and close are important, but why? Most of us have a vague idea why, and may have heard a few quotes about the open, but do we really know why the open is so important? The open often establishes the trend […]
A stock split a corporate action that happens when a company decides their stock price is either too high (forward split) or too low (reverse split). Companies do this to help reduce the cost of a stock so more people can invest in it or if it is too cheap it raises the price to meet […]
Fundamental Analysis is a way to evaluate the value of a company based on key financial metrics to find it’s intrinsic value as way to see if it is overvalued or undervalued. This method is more suitable for investors who are not concerned with the day-to-day price action of the stock and are rather focusing their […]
The tick index is an important indicator used for determining overbought and oversold conditions for active traders. It is calculated by taking all the stocks on NYSE that have had an uptick minus all the stocks that had a down tick and then the result is displayed on a chart based on your preferred time […]
Short interest is a term that shows how many shares are short compared to the float and can also be displayed as a percentage called the short percent of float. It is important to understand and know when trading a stock because it can play a huge role in how much a stock can move. It […]
With the advent of Direct Market Access (DMA) there are now ways for traders to gain access directly to market makers and ECNs and bypass gateways from standard brokers that take more time for you to get an execution. There are a ton of different order routes to choose from but we have found ARCA and […]
The Volume Weighted Average Price, or more commonly known as the VWAP, is a trading indicator that is calculated by taking the number of shares bought times the share price and then dividing by total shares bought. Basically it calculates the average price of the stock based on how many shares were traded at different […]
Table of contents Why Traders Need Technical Analysis Technical Analysis: Bottom Up vs. Top Down Approach Key Technical Analysis Concepts Support and Resistance Bottom Line Technical analysis is a loaded term. The phrase means different things to different people. If you ask a green pea newbie, they’ll tell you that with the right knowledge of […]
Market Capitalization, better known as Market Cap, is a measurement used to classify a company’s size, which can be categorized between small, medium or large cap with sub-categories from there. It is a simple calculation that takes the stock price and multiplies it by the number of outstanding shares. Understanding what the market cap is […]
