The world’s first shares date back to Ancient Rome Although it was in northern Europe at the beginning of the 17th Century that joint ownership of companies first became popular. The world’s first joint stock company, the Dutch East India Company, was formed in 1602 by the merger of several small Dutch…
In short: The money flow index is a momentum indicator like the relative strenght index (RSI) but with added volume. It is used to indicate the change of the current trend. What is the Money Flow Index Indicator? The money flow index (MFI) is a technical oscillator that measures the…
In short: “The IPSOS Global Consumer Confidence Index measures the consumer spending and future outlook over a certain category and time”. The consumer confidence index started in 1967 and is benchmarked to 1985 = 100. This year was chosen because it was neither a peak nor a trough. The index…
Gone are the dealers on NASDAQ and the specialists at the NYSE. Instead, a company’s stock can now be traded on up to sixty competing venues where a computer matches incoming orders. A majority of quotes are now posted by high-frequency traders (HFTs), making them the dominant source of liquidity in the market.
In short: Technical Analysis is trying to predict the direction of prices through the study of market data via graphics. Primarly price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy…
In short: Quarterly Earnings is an obligated financial report that covers three months of the year, A quarterly earnings report is a quarterly filing made by public companies to report their performance. Earnings reports include items such as net income, earnings per share, earnings from continuing operations, and net sales. By analyzing quarterly earnings…
In short: SMI is an index of orders in the last half hour compared to the first half hour. The Smart Money Index, or Smart Money Flow Index, was popularized by Don Hayes in the 1990s and seeks to understand what the “smart money” is doing relative to the “dumb…
In short: Fibonacci retracements are based on the key numbers identified by mathematician Leonardo Fibonacci in the 13th century. Fibonacci’s sequence is expressed as ratios, between the numbers in the series. Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci…
In short: A stochastic oscillator is an indicator comparing a closing price to a range of prices over a certain period of time. It is used to generate overbought and oversold trading signals. Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of…
In short: The Ichimoku Cloud are 5 of indicators that show support and resistance levels, as well as momentum and trend direction. It also uses these figures to produce a “cloud” which attempts to forecast where the price may find support or resistance in the future. What is the Ichimoku Cloud Indicator? The Ichimoku Cloud…
