On Balance Volume (OBV) is a momentum indicator that helps to measure the buying and selling pressure. As a cumulative indicator, On Balance Volume adds volume on up days and subtracts on down days. It utilizes volume flow thus predicting changes in stock price. According to savvy traders, the stock that closes higher than the […]
The Bearish Engulfing pattern is a chart formation where the small green candlestick is engulfed or covered by a big red candlestick. Basically, the pattern is opposite to the Bullish Engulfing pattern where the small red candlestick is eclipsed by a large green candlestick. This chart pattern helps to identify the future occurrence of a […]
The bullish engulfing pattern is a chart pattern that forms when a new candlestick opens lower and then closes higher than the entire previous candle. A look at the chart pattern will display the tails of the small candle stick as short. This allows the body of the larger candlestick to engulf the smaller black […]
Standard deviation is a statistical measure that represents the rate of divergence from the mean in a data set. The higher the standard deviation, the more the elements of the data set deviate from one another. Standard Deviation Formula It is calculated by first finding the variance, which is the sum of the difference between […]
A joint account is a type of brokerage account shared between two or more people who include relatives, business partners, and couples. The account is usually opened between individuals who are familiar and trust each other. Each individual co-signed to the joint account has the right to own and manage it. Co-signors of a joint […]
Generally speaking, a unicorn refers to a start-up company that has attained a $ 1 billion market value as valuated by either a private or public investment firm. According to experts from the Venture Capital industry, a unicorn is a tech start-up company that has yet to establish a performance record but it has been […]
The Hard to Borrow List refers to an inventory of securities the brokerage firm is unable to provide for short selling. The inventory provides a current catalog of securities which cannot be shorted by investors or short selling traders. In trading, the reason why a security may be placed on the hard-to-borrow list is because […]
Cryptocurrency is a digital currency that utilizes cryptography for security and can be sent from one person to another anywhere around the world at very low processing charges. Cryptocurrencies are virtual currencies exchanged between people around the world using cryptography and shared public ledgers thus creating a secure, anonymous and stable monetary system. Cryptocurrencies derive […]
Depending with the context, equity has been found to have varying meaning. In finance, equity refers to the ownership of assets after liabilities and debts have been settled. In trading, equity refers to stock or ownership of shares in a public trading company. On the other hand, private equity refers to ownership interest in […]
Return on investment (ROI) refers to a metric that measures profit or loss generated by an investment in relation to the invested funds and is expressed as a percentage. As the most common profitability metric, it helps to evaluate the performance of a company relative to the invested money. It’s important to understand that profit […]
