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Everything posted by Igor
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Vertical line charting also uses the vertical line tool to draw vertical lines that match the filtering signals of indicators in the indicator windows below the charts to the trade signals on the candlesticks on the charts. This helps the trader to get concurrence when looking for timing of the signal on the chart to the signal on the indicator window.
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To do this, the VPT factors in the percentage increase or decrease in price of the asset in its calculations, as opposed to just adding or subtracting volume based on if the asset’s market price is higher than the closing price of the previous day. This information can then be used by traders to spot and trade divergences.
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The VWAP cross bears its name from the volume-weighted average price, which is a ratio of the value of the asset traded over a particular time frame to the volume of the asset traded in the same time frame.
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If a trader is expecting a downtrend to end soon, but the price of the asset is still some distance away from any support level or potential market bottom, we will see a pattern where traders use weak shorts; sell positions with small profit targets. The aim is to be able to profit from whatever is left of a downtrend without the risk of the trade getting caught out by a major bullish reversal.
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There are two types of wedge patterns. The falling wedge is a bullish reversal pattern in which the upper trendline slopes downwards at a greater angle of slope to converge towards the lower trend line. The rising wedge is a bearish reversal pattern in which the lower trendline slopes upwards at a greater angle of slope to converge towards the upper trendline.
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On some forex platforms, the default settings for the bullish candlestick is a white, opaque colour. On platforms where the bullish candlestick is given a green colour, the trader may decide to change the colour settings on his own for better recognition and depiction.
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The Williams %R indicator is calibrated from 0 to – 100, with readings from -20 to -100 considered as oversold and readings of 0 to -20 considered as overbought. This makes the Williams %R indicator suitable for use in trading reversals.
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The wave pattern shown by the Wolve wave is formed by demand and supply equilibrium occurring over time.
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The disadvantage of the zigzag indicator is that it uses past data and so does not perform so well in predicting trend changes before they occur, making it a lagging indicator. It must be combined with a leading indicator such as the Elliot Wave to get trade signals in good time.
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Support is rarely formed by a single price. It is more realistic to talk of a region of support or a zone of support, which is a price range which a downtrending price cannot get below. The zone of support exists because as the asset price goes down to that level, sellers exit their positions on the asset and buyers take over, stalling the continued downward move of that asset. These sellers do not all exit at the same price but rather within a tight range of prices, so the support area is a zone and not a single price level.
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When dealing with Ex-Warrants, sellers maintain distribution rights. So, when an investor is looking to buy shares, distribution rights can not be obtained.
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As trading technology improves, it has become easier for investors to access from their homes, anywhere around the world. Because of this, limitations on trading hours have been reduced over time.
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An Executing Broker is the connection between market participants and the trading exchanges. In some cases, such as excessive market volatility, brokers are not able to initiate orders at the prices requested by clients.
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Stocks receive "Ex-Dividend" status once the Ex-Dividend date expires. At this point, the holder of the shares will be entitled to any dividend payouts that are made.
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Entropy has been a long-studied topic in the financial markets, helping to forecast the price direction after certain technical patterns. Securities with a higher level of volatility in their histories tend to have greater levels of Entropy.
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nd Of Day Orders are an excellent way for investors to position themselves during a specific trading session. Since market sentiment can change drastically from day to day, these orders are no longer valid once the session expires.
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One feature of the EDGX is that it charges fees to those absorbing liquidity while making payments to those providing liquidity. Other examples of high volume trading platforms include the NAZDAQ, Arca, and NYSE.
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The Dusseldorf Stock Exchange can be abbreviated with the symbol DUS and uses the QUOTRIX system for placing asset transactions. The exchange also trades closed-end fund assets, using the GEFOX system.
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Dollar Volume Liquidity is critical for institutional, investment bodies because because of the typically large size of their positions. Stocks with high liquidity levels tend to be easier to buy and sell in active markets.
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The widespread popularity of online retail investment tools has lead many people to manage their own portfolios. The primary advantage of this type of investing is to reduce fees and replace money managers that are underperforming the broader market.
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Directional Trading is similiar to binary options trading, where the primary concern for investors is to be accurate in directional forecasting. When the trader believes the price of an asset will rise, a buy is initiated. If the trader believes prices will fall, a short sale is initiated.
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Directed Orders can be viewed in contrast with Non-Directed Orders, which are much more common. In these cases, the client issues no exchange preference and the broker makes the decision to execute the trade on their own preferred exchange.
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For example, 4 people would normally spend 20$ on dinner but after making the agreement, each participant orders a $40 meal. In the end,they each end up paying double their normal costs, despite the agreement to save on expenses.
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This system is also referred to as the DOT or SuperDOT, and is used by the New York Stock Exchange. The system is mostly used for small entries, limits, and program trades.
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Since market activity requires active buyers and sellers to keep volatility at a minumum, descreases in market depth often leads to price gap. Conversely, periods of increasing market depth shows price moves that are reflective of a majority of the market.