Technicals

Trading philosophies

Technical analysis includes study of price trends, volume, open interest, price gaps, support and resistance levels, and many other factors. In the world of finance, there are three main trading philosophies that are widely recognized: contrary opinion, fundamental analysis, and technical analysis. While some may argue for strictly adhering to one of these approaches, it is common for traders to incorporate a combination of all three. Contrary opinion, popularized by Neill Humphrey in The Art of Contrary Thinking, involves going against the prevailing market sentiment at key turning points. Fundamental analysis, on the other hand, focuses on the relationship between supply and demand and how it impacts market prices. This requires extensive research on various factors such as inventory levels, consumer trends, and political conditions. Lastly, technical analysis relies solely on price data to make trading decisions. This approach involves studying price patterns, trends, volume, and other key indicators to identify potential opportunities. While each approach has its own merits, successful traders often

Relative strength indicator

A fundamental concept in finance, the technical reversal is a powerful tool used to predict market movements. It helps identify when the market has reached an extreme point ...

Simple linear regression

In the field of finance, a regression analysis is a statistical tool that examines the relationship between two variables - one being the dependent variable and the other, t...

contango

In the world of finance, there is a term called "inflation" which refers to a general increase in prices over a period of time. It occurs when the prices of goods and service...

Most Active Stocks

When evaluating the most actively traded stocks, one must consider the period of time in which they were traded, typically within a single day of the week. This list serves ...

Cyclic analysis

Seasonal analysis is a method used to identify patterns and fluctuations in prices. It takes into consideration different factors that are associated with different times of...

Confirmation

When two financial indicators align in their movement, we refer to it as convergence. This alignment signifies a higher level of certainty that the trend will persist. On th...