Currency exchange dates back from ancient times when traders exchanged coins originating from different countries. Silver and gold coins were used and valued based on their weights and their size. In the Roman empire, the government held a monopoly...
A market order represents the most basic type of trade order and implies buying or selling a security at the current price. Securities are bought at the ASK price and sold at the BID price. If the trader needs...
Bollinger bands are one of the tools in the technical analysis used by traders to closely look at price movements. It was introduced by technician John Bollinger in the early 1980s. He took one moving average with two more...
Fractals are one of the indicators used in identifying trend reversals. Namely, fractals represent one of the simplest trade patterns, repeating over time. At least five bars in a bar chart are needed to form a pattern. Fractal can...
Purchasing Managers Index (PMI) is the leading indicator of the economic growth and directions of economic trends. It is derived from the survey of private businesses in specific sectors. The index is published monthly and observed by various market...
Momentum is the phenomenon that was empirically proved to exist in price movements. Momentum explains that stocks that have been recently performing well (winners) will continue to outperform and the stock that has been underperforming (losers) will continue to...
Helicopter money is the phrase crafted by Milton Friedman in 1969 trying to explain the consequences of changes in base money. It is a theoretical unconventional monetary policy to be used in combating with deflation.
“Let us suppose now that...
Risk reversal is an options trading strategy used to hedge risk. The strategy protects against adverse movements but at the same time limits potential profit. A trader buys one option and other write depending on a position in underlying....
The Stochastic oscillator is one of the momentum indicators which compares the current price with the previous highest and lowest price range. It was developed by George Lane during the 1950s. It can be used to identify price reversals...
Nasdaq Composite Index
Nasdaq Composite index includes more than 3000 stocks listed on the Nasdaq stock exchange. First introduced in 1971, it is one of three globally-followed US stock market indices along with Dow Jones Industrial Average and S&P 500....
