Read this article because it gives the 50,000-foot view on reading stock charts, a fundamental skill for enhancing your trading decisions in the stock market.
This is cash generated from your day-to-day trading activities. Since operating activities are the mainstay of a business, a business whose cash primarily comes from operations will be a more sustainable one. Of course, a few periods where cash from operating activities dwindle should not be c...
Daily trade range- Just like volume, each red or black vertical line on the chart represents one independent trading day. If the bar is red, that means the stock or in this case the index was DOWN overall on the day compared to the previous day. Black bars mean that the stock was eve...
When we graph a data set, each point is arranged to produce a distribution shape. On observing it, you can identify the spread of data, where the mean lies, the range of the data, and more. The shape of the distribution can help us identify other descriptive statistics, such as central...
Study how the charts behave throughout the day so you can get a sense of how they fluctuate over a trading session. Disclaimer: Getting accustomed to looking at stock charts doesn’t make you an expert in technical analysis. Even if you start to predict stock movements, be wary of ...
The manager even included an impressive graph to help prospective investors visualize the difference in terminal wealth. In reality, the two sets of investors may have indeed received the same simple average returns, but that doesn't matter. They most assuredly did not receive the same compound...
Thus, if we calculate the correlation coefficient including this outlier, it would suggest a weaker correlation between the stock and the S&P 500 than actually exists on most trading days. More broadly, this means watching out for times when the data might not be representative of most trading ...
This graph above shows that the strategy helped with good returns over a period of time. The cumulative returns made through this strategy are INR 1000. To check and use the entire Python code, you must enrol in our course onOptions trading strategy in Python: Advanced. You will find the ...
A dual-axis chart helps investors see if big price moves are supported by high trading volumes, which can validate whether a price change is likely to endure or if it’s just market noise.SaaS: Revenue vs. Customer Acquisition in a Dual-Axis Approach...
Traders shouldn't overlook the MACD histogram when using the MACD indicator to make trading decisions. The MACD histogram helps to alleviate the signal lag problem by generating earlier entry signals. Traders can track the length of the histogram bars as they move away from the zero line. They...