Written by admin on November 21st, 2010
Share Value
Share value also commonly referred to as share price, reflects the changes in the performance of an asset such as company stock, commodities, investment pools, or mutual funds. The current share value (price) multiplied by the number of shares in the asset, reflects the current market value. Investors determine share value by placing trades based [...]
Continue Reading...Written by admin on November 17th, 2010
Uptick Rule
A now defunct rule established by the SEC that required every short sale transaction to be entered at a price that is higher than the price of the previous trade. Also know as the Short Sale Rule. The uptick rule was aimed at preventing short sellers from adding to the downward momentum when the price [...]
Continue Reading...Written by admin on October 25th, 2010
Keltner Channel
A volatility based technical analysis ‘envelope’ indicator that measures the movement of stocks in relation to an upper and lower moving-average band. Used to predict the trend of the market. Some examples of it’s use are: An overbought signal occurs when prices move above the upper band, and an oversold signal occurs when prices move [...]
Continue Reading...Written by admin on October 25th, 2010
Inside Market
The highest quoted bid and the lowest quoted offer (ask) price among competing market makers in a security. This is the best bid and offer prices, also known as the market maker spread.
Continue Reading...Written by admin on October 19th, 2010
Gap
When price makes a sharp move up or down with no trading occurring at the in between price levels causing a break or “Gap” on the chart. There are four common types of gap patterns, breakaway, common, continuation, and exhaustion. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, [...]
Continue Reading...Written by admin on October 19th, 2010
Ease Of Movement
A technical analysis, momentum indicator used to show the relationship between the rate of price change and volume. This indicator attempts to identify the amount of volume required to move prices. Generally a value greater than zero is an indication that the stock is being accumulated (bought) and negative values indicate selling pressure. A high [...]
Continue Reading...Written by admin on March 4th, 2009
Richard Rhodes’ Trading Rules
I must admit, I am not smart enough to have devised these ridiculously simple trading rules. A great trader gave them to me some 15 years ago. However, I will tell you, they work. If you follow these rules, breaking them as infrequently as possible, you will make money year in and year out, some [...]
Continue Reading...Written by admin on February 25th, 2009
The Flaw In Our Emotions
As humans we have a natural tendency to try and influence our surroundings and events we take part in. This is one reason as a species we have succeeded but it is also one of the fundamental flaws we all have when trying to achieve success as a trader. As traders we have to realize [...]
Continue Reading...Written by admin on February 23rd, 2009
Pivot Point Trading
You are going to love this lesson. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only [...]
Continue Reading...Written by admin on February 20th, 2009
John Murphy’s Ten Laws of Technical Trading
Which way is the market moving? How far up or down will it go? And when will it go the other way? These are the basic concerns of the technical analyst. Behind the charts and graphs and mathematical formulas used to analyze market trends are some basic concepts that apply to most of the theories [...]
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