Category: Stock Research

Interest rates are something that drives the foreign exchange market. The interest rate influences the exchange rate because it influences the demand and supply of currencies on the foreign exchange markets. While currency prices are what the market is all about, interest rates have a direct affect on those prices. Therefore, to be able to…

Support and resistance is a concept in technical analysis that the price of a security will tend to stop and reverse at certain predetermined price levels. Support A support level is a price level where the price tends to find support as it is going down. This means the price is more likely to “bounce”…

The price of an option can be broken down into two parts: extrinsic value and intrinsic value. Intrinsic Value Intrinsic value is the portion of the option that can be realised if the option is exercised. Intrinsic value is the greater of zero and the difference between the exercise price of the option (strike price,…

In statistics, a moving average or rolling average is one of a family of similar techniques used to analyze time series data. It is applied in finance and especially in technical analysis. It can also be used as a generic smoothing operation, in which case the raw data need not be a time series. A…

A recent Wall Street Journal article highlighted the incredible success of leveraged ETFs. A year ago, none existed; today, more than 50 such funds collectively hold more than $6 billion in assets. Through the magic of borrowing money, these funds can provide investors with additional leverage to invest in the market and allow investors the…

Volume At Price histogram is also known as “Volume Profile” chart. VAP shows total volume of trading that occurred at given price level. VAP is calculated from data bars that are currently visible. Actual algorithm involves not ONE price but High-Low price RANGE.   Listen to What Volume Tells You! There are 6 simple rules…

Economic conditions Econimic conditions includes factors such as jobs, unemployment, work ethic, infrastructure, inflation and direction of the economy. There are some economic indicators that detail a country’s economic performance. 1. Gross Domestic Product (GDP) GDP is considered the broadest measure of a country’s economy, and it represents the total market value of all goods…

Trix (or Triple Exponential Average) is a technical analysis oscillator developed in the 1980s by Jack Hutson, editor of Technical Analysis of Stocks and Commodities magazine. It shows the slope (ie. derivative) of a triple-smoothed exponential moving average. The name Trix is from “triple exponential.” Calculation Trix is calculated with a given N-day period as…

The stochastic oscillator is a momentum indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span. George Lane, a financial analyst from the 1950s is one of the first to publish on the use of stochastic…

On-balance volume (OBV) is a technical analysis indicator intended to relate price and volume in the stock market. OBV is based on a cumulative total volume. Volume on an up day (close higher than previous close) is added and volume on a down day is subtracted. The technique was investigated in the 1940s by Woods…