Oversold

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…

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Overbought

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….

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MACD

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…

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Trendlines

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…

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A Bear Market

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…

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