In short: A Bull Market when stocks in general go up about 20% we call it a bull market. A bull market is the market condition when prices continue to rise. Markets follow two general trends over time. Either prices are in an upswing (increase) or they are in a…
In short: Oversold is when there are much more sell orders than buy orders. What is an oversold condition? To understand the term oversold you should really first know what the RSI (relative strenght index) is. The term oversold refers to a condition where a stock has traded lower in…
In short: Overbought is when there are much more buy orders than sell orders. What is an overbought condition? To understand the term overbought you should really first know what the RSI (relative strenght index) is. The term overbought refers to a condition currently above its intrinsic or fair value….
What is Parabolic SAR? In short: The SAR or stop-reverse-system determines the direction of the stockprice ahead of time. The Parabolic SAR is a technical indicator developed by J. Welles Wilder to determine the direction that an asset is moving. The indicator is also referred to as a stop and…
In short: When the lines in the MACD crossover it means that a new trend forms. The MACD is the difference between the Moving Average-short and Moving Average-long. The Histogram is the difference between the two MA’s. MACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of stock prices, created by Gerald…
In short: Trendlines are used in TA to quickly point out the general direction of a stockprice by connecting the highs and the lows. Unlike horizontal support and resistance, trendlines are diagonal or slanted areas of value. Trendlines do behave like support and resistance in that price action can be confined…
In short: A Bear Market when stocks in general go down more than 20% we call it a bear market. A bear market occurs when the price of an investment falls at least 20% from its high. For example, when the Dow Jones Industrial Average continued a decline on March 11 from its…
In short: The Nasdaq is a Tech index of 100 largest Tech companies. The NASDAQ Composite (ticker symbol ^IXIC) is a stock market index of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the Nasdaq stock market. Along with the Dow Jones Industrial Average and S&P 500 it is one of the three most-followed indices in US stock markets. The…
In short: ” It is the movement of money invested in stocks from one industry to another as investors and traders anticipate the next stage of the economic cycle. Based on the idea that the economy moves in reasonably predictable cycles.” We as long term investors know that some stock will go out…
In short: The Fair Value is the actual value of an asset. the value of the company divided by the number of shares. The fair value or intrinsic value of an asset, in this case, can be anything – a stock, a property, a product. The value is agreed upon…
