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Technicals

VWAP

Let's discuss an important concept in finance known as Volume Weighted Average Price, or VWAP for short. This metric is calculated by taking the total volume of trades for the day and multiplying it by the corresponding price for each trade. This is then divided by the total volume for the day. Essentially, it is a measure of the average price at which a particular security is traded throughout the day.

VWAP is commonly used as a benchmark in pension plans to evaluate the performance of a particular trade. It is believed that if the price of a buy trade is lower than the VWAP, it is a favorable trade. Conversely, if the price is higher than the VWAP, it may not be as advantageous. This concept is based on the idea that the VWAP represents the fair market value of a security at any given time.

By incorporating the total volume of trades into the calculation, VWAP takes into account both the price and the quantity of

This is often seen as a temporary level of support for a security. In the world of finance, we often come across the term "resistance level". This refers to a price level a...

Positive divergence

Positive divergence is a crucial concept in finance. It refers to a situation where a price index is simultaneously showing a lower bottom while a technical indicator is dis...

Stop and reverse

One important term in finance is "stop," which serves as a signal to close a current position and open an opposite one. For instance, a trader with a long position would sel...

Let us delve into one of the most useful tools in technical analysis, William's Percent R. Developed by renowned trader Larry Williams, this indicator helps identify overbou...

In finance, we often observe a phenomenon known as a price move. This occurs when the value of a financial instrument shifts either upwards or downwards. These movements can...

Relative Strength

As we delve into the world of finance, it is important to understand the concept of relative strength. This refers to the comparison of a stock or group of stocks against a ...

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Market Entities

All terms related to various types of organizations or individuals, like investors, banks, insurers,

Currency

All terms related to the system of money in general use in a particular country, representing a medi

Commodity

All terms related to the basic goods used in commerce that are interchangeable with other goods of t

Trading Terms

Trading Terms encompass terminology and phrases commonly used in financial markets, including terms

Property

The "Property" category in finance encompasses all aspects related to real estate and tangible asset

Mutual Funds

All terms and concepts related to mutual funds, which are investment vehicles that pool funds from m

IPO

All terms and concepts related to the process in which a private company offers its shares to the pu

Insurance

All terms and concepts related to insurance, which is a financial arrangement that provides protecti

Public Offerings

All terms related to a company selling its shares or bonds to the public for the first time (IPOs) o

Technicals

All terms and concepts related to technical analysis in finance, which involves using historical pri

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