Investing - All Content

  1. When does a business report gross margins?

    Learn how gross margins are calculated and when publicly traded companies release these figures. Explore consensus street ...
  2. What is the difference between a P&L statement and a balance sheet?

    Take a deeper look at the differences between the profit and loss statement and the balance sheet, two of the most important ...
  3. What is a P&L statement used for?

    Discover how the profit and loss statement is used by investors, accountants and business managers to assess the health and ...
  4. What are essential steps to financial due diligence?

    Explore different areas of financial due diligence. Learn the steps of due diligence that may help ensure selected investments ...
  5. Putting Your Retirement Eggs in Several Baskets

    When trying to reduce the volatility of one's investments, it's good to diversify by varying one's portfolio assets or doing ...
  6. How are Mat Hold patterns interpreted by analysts and traders?

    Understand the elements of the mat hold candlestick pattern and how analysts and traders interpret this continuation signal ...
  7. What is the Detrended Price Oscillator (DPO) formula and how is it calculated?

    See how analysts and traders attempt to estimate the length and depth of current price cycles through the Detrended Price ...
  8. What are the best ways to measure if a stock is overbought?

    Explore some of the most popular oscillators used to measure overbought conditions, both range-bound and unbound, and how ...
  9. What are the best ways to measure if a stock is oversold?

    Understand two of the most common methods for measuring the oversold status of a stock, the basics of calculation and how ...
  10. What are the best indicators to identify overbought and oversold stocks?

    Learn about the interpretation of the relative strength index and stochastics, two of the most popular indicators of overbought ...
  11. How are Outside Days interpreted by analysts and traders?

    Understand the meaning and significance of outside days and how they are interpreted as trading signals by traders and market ...
  12. How do I build a profitable strategy when using Outside Days?

    Learn a potentially highly profitable trading strategy that traders employ when an outside day occurs in trading near a major ...
  13. Why is the Parabolic Indicator important for traders and analysts?

    Discover the rationale behind the parabolic indicator, or parabolic SAR, and why J. Welles Wilder Jr. created it to protect ...
  14. Mexicans Unsure about Mexican Reforms

    Two years into his first term, Mexican President Enrique Peña Nieto is following through on radical campaign promises he ...
  15. How effective is creating trade entries after spotting a Mat Hold pattern?

    Understand the elements of the mat hold candlestick pattern and how it can be used to create an effective trade strategy ...
  16. Why is the McClellan Oscillator important for traders and analysts?

    Find out why traders and analysts have long trusted the McClellan oscillator, a momentum indicator created by Sherman and ...
  17. Why is the Money Flow important for traders and analysts?

    See why the concept of money flow is useful in technical stock market analysis, and how traders and analysts can use money ...
  18. What are the main differences and similarities between the Money Flow Index (MFI) ...

    Learn to distinguish between the relative strength index (RSI), a popular momentum oscillator, and the money flow index (MFI), ...
  19. Why is the Moving Average Ribbon strategy important for traders and analysts?

    Take a look at the rationale behind moving average ribbons, and see why traders and chartists use multiple trendlines for ...
  20. How are Multiple Tops patterns interpreted by analysts and traders?

    Understand how the multiple tops chart pattern is interpreted by traders and analysts and what makes it such a powerful reversal ...
  21. How do I build a profitable trading strategy when spotting an Multiple Tops pattern?

    Understand the optimal conditions for creating a profitable trade strategy based on the multiple tops pattern, and learn ...
  22. How effective is creating trade entries after spotting a Multiple Tops pattern?

    Understand the basics of trading based on a multiple tops chart pattern, and learn what elements should be of primary focus ...
  23. Why is the Negative Volume Index (NVI) important for traders and analysts?

    Dive into the theory and history of the Negative Volume Index (NVI), a volume-based indicator used to identify and qualify ...
  24. How do I build a profitable strategy when spotting a Mat Hold pattern?

    Learn how to establish a profitable trading strategy based on the mat hold candlestick pattern, how to identify a strong ...
  25. Are Bollinger Bands® useful for analyzing securities with very low volatility?

    Learn more about Bollinger Bands, a tool based on standard deviations of moving average that can be applied to both high ...
  26. How do I spot support and resistance from Chikou Span?

    Understand how to interpret the Chikou span, one of the indicators that makes up the ichimoku cloud, and is used to pinpoint ...
  27. What technical indicators can be used to confirm the tendency of a stock?

    Find out what signal confirmation is and some common strategies used to confirm trading signals concerning the tendency of ...
  28. How do I use the disparity index in forex trading?

    Read about how traders in the forex market can use the disparity index to identify reversals, divergences and overbought/oversold ...
  29. What are common trading strategies used with the disparity index?

    Read about some of the trading concepts that accompany the disparity index, a technical volatility indicator introduced by ...
  30. Why is the disparity index important for traders and analysts?

    Learn more about the disparity index, a technical momentum indicator that uses the relationship between current prices and ...
  31. How do I use the Directional Movement Index (DMI) for forex trading?

    Learn how to incorporate the directional movement index, or DMI, into a forex trading strategy to better pinpoint trade entries ...
  32. What are common trading strategies when using the Directional Movement Index (DMI)?

    Use the directional movement index, or DMI, to determine strength of buying and selling pressure in a market and for keys ...
  33. Why is the Detrended Price Oscillator (DPO) important for analysts and traders?

    Find out how traders and analysts use the detrended price oscillator to locate overbought and oversold positions by eliminating ...
  34. What are common strategies traders implement when using Detrended Price Oscillator ...

    Learn how to calculate the detrended price oscillator, and how traders use this tool to identify price cycles in securities ...
  35. How do I find stocks developing ascending triangle patterns?

    Learn more about the types of computer programs and software packages that can help traders scan the market for specific ...
  36. What is a common strategy traders implement when using the Force Index?

    Learn about how traders and analysts use a momentum oscillator called the force index to measure trend strength for a given ...
  37. How do I create a trading strategy with Bollinger Bands® and candlesticks?

    Understand a common trading strategy using both Bollinger Bands and candlesticks as key technical indicators, including how ...
  38. How do I create a trading strategy with Bollinger Bands® and the Stochastic Oscillator?

    Learn how to create a trading strategy by combining two different technical indicators, Bollinger Bands and the stochastic ...
  39. What is the logic behind using Bollinger Bands® as an indicator of volatility?

    Discover the logic behind using Bollinger Bands as a measure of price volatility for a security, and how the bands adapt ...
  40. What does "In Escrow" Mean?

    Escrow is a financial agreement involving two parties, usually a buyer and a seller. The buyer deposits money, securities ...
  41. What's an Investment?

    An investment is an asset purchased with the expectation that it will generate income or appreciate over time. In finance, ...
  42. Profiting From China's Breakout: The Right Funds

    China's prospects for growth, and for rewarding investments, can't be debated. Here are some worthwhile funds to invest in, ...
  43. What is the Guppy Multiple Moving Average (GMMA) formula and how is it calculated?

    Find out how Australian trader Daryl Guppy designed a system of 12 separate moving averages to measure the relationship between ...
  44. How are Hammer patterns interpreted by analysts and traders?

    Understand the components of the hammer candlestick pattern, and learn how traders and analysts interpret this pattern when ...
  45. How do I build a profitable strategy when spotting a Hammer pattern?

    Understand how analysts use the hammer candlestick pattern to establish trading strategy to enter and exit the trade and ...
  46. How effective is creating trade entries after spotting a Hammer pattern?

    Learn the elements of creating an effective trading strategy based on the hammer candlestick pattern for circumstances that ...
  47. How are Harami Cross patterns interpreted by analysts and traders?

    Understand how analysts interpret the harami cross candlestick pattern, including factors that influence signal strength ...
  48. How do I build a profitable strategy when spotting a Harami Cross pattern?

    Learn key elements of creating a trading strategy based on the harami cross pattern, including signal strength, and when ...
  49. What are the differences between Bollinger Bands® and Donchian Channels?

    Read about the primary differences between Bollinger Bands and Donchian Channels, two technical price charting tools used ...
  50. How effective is creating trade entries after spotting a Evening Star pattern?

    Explore the elements of the evening star candlestick pattern, and learn what factors influence the effectiveness of trade ...
  51. What is the Dynamic Momentum Index formula and how is it calculated?

    See how Tushar Chande and Stanley Kroll changed the basic formula for the relative strength index (RSI) to create the dynamic ...
  52. Why is the Dual Commodity Channel Index (DCCI) important for traders and analysts?

    Find out how traders and analysts use the dual commodity channel index (DCCI), the derivation of a technical cycle indicator ...
  53. Are Bollinger Bands® used for investing or trading?

    Find out how investors or traders would use Bollinger Bands and why they are more useful for technical traders than long-term ...
  54. How effective is creating trade entries after spotting a Harami Cross pattern?

    Understand the factors that impact the effectiveness of trades based on the harami cross candlestick pattern and what circumstances ...
  55. Why is the Guppy Multiple Moving Average (GMMA) important for traders and analysts?

    Find out why investors, traders and analysts can all use the Guppy multiple moving average indicator (GMMA) to measure the ...
  56. How do I use Guppy Multiple Moving Average (GMMA) to create a forex trading strategy?

    Find out how to use the 12 moving average lines of the Guppy Multiple Moving Average (GMMA) model to spot trends and place ...
  57. What are the best technical indicators to complement the Guppy Multiple Moving Average ...

    Discover which technical tools best complement the Guppy multiple moving average indicator (GMMA), especially momentum oscillators ...
  58. How do I build a profitable strategy when spotting a Golden Cross pattern?

    Learn the primary trading strategies that traders and market analysts employ when they have identified the occurrence of ...
  59. What is the difference between a Golden Cross and a Death Cross Pattern?

    Learn the difference between the golden cross and the death cross, both of which are considered important technical indicators ...
  60. How effective is creating trade entries after spotting a Golden Cross pattern?

    Explore the components of the golden cross pattern for elements of effective trading strategy based on this pattern, including ...
  61. How are Gravestone Doji patterns interpreted by analysts and traders?

    Understand how the Gravestone Doji candlestick pattern is interpreted by analysts and traders and what factors influence ...
  62. How do I build a profitable strategy when spotting a Gravestone Doji pattern?

    Learn a low-risk, potentially high-reward trading strategy that traders use when they have identified a gravestone doji candlestick ...
  63. How effective is creating trade entries after spotting a Gravestone Doji pattern?

    Understand what factors influence the effectiveness of a trading strategy based on the gravestone doji pattern, including ...
  64. How is a Gravestone Doji Pattern, followed by a Dragonfly Doji, interpreted by analysts ...

    Learn the difference between gravestone doji and dragonfly doji candlesticks, and what interpretations traders apply to them ...
  65. What is a common strategy traders implement when using the Guppy Multiple Moving ...

    Learn how to interpret the relationship between the trader and investor price signals of the Guppy multiple moving average ...
  66. Why is the Gann Fans important for traders and analysts?

    Learn more about the theories of W.D. Ganns, and see how traders employ his nine Gann fans to identify support and resistance ...
  67. How do I use Gann Fans for creating a forex trading strategy?

    Read about how forex traders can use the trendlines drawn in a Gann fans model for either trend following or trend reversal ...
  68. What is the Gann Fans formula and how is it calculated?

    Learn about Gann fan theory, a style of market analysis that assumes that prices move in predictable, geometrical cycles ...
  69. How are Golden Cross patterns interpreted by analysts and traders?

    Learn why the golden cross is considered a major technical indicator of a bull market in an individual stock, market index, ...
  70. How do I pick the best method for forex system trading?

    Discover how to identify the best type of forex system trading style for you based on your available time, your trading preferences ...
  71. How are Fractal patterns interpreted by analysts and traders?

    Read about the fascinating and controversial fractal patterns and their uses in technical analysis to spot possible trend ...
  72. How effective is creating trade entries after spotting a Fractal pattern?

    Learn more about fractal patterns in market price charts, and see why some of the methodological deficiencies of fractal ...
  73. Medici, The Blockchain Stock Exchange

    Overstock CEO Patrick Byrne's revolutionary Project Medici would list Overstock securities on a blockchain-based exchange--a ...
  74. Patrick Byrne's Interest In Bitcoin Was A Good Call, It Turns Out

    Patric Byrne and his interest in Bitcoin is much beyond a 'publicity stunt' that many had initially alleged. He sees a future ...
  75. A Look At Pimco's Total Return Fund Post-Gross

    Pimco has stabilized its Total Return fund, but its returns are still shaky and its sales load is still a fat one.
  76. Where are home values falling the fastest in the US, and why?

    Learn about the metropolitan areas in the United States experiencing the largest drops in median single family homes values ...
  77. What is a common strategy traders implement when using the Exponential Moving Average ...

    Learn a common strategy traders use in conjunction with the Exponential Moving Average indicator known as the moving average ...
  78. How is the Falling Three Methods pattern interpret by analysts and traders?

    Understand the elements of the falling three methods candlestick pattern, how it is interpreted by analysts and what factors ...
  79. How do I build a profitable strategy when spotting a Falling Three Methods pattern?

    Explore the elements of trade strategy based on the falling three methods candlestick pattern, including how and when to ...
  80. How effective is creating trade entries after spotting a Falling Three Methods pattern?

    Explore the components of the falling three method pattern, what makes it an effective trade entry signal and which factors ...
  81. What are the best ways to protect trade positions against false signals?

    Find out why it is important that traders learn to protect themselves against false signals, and read about some of the most ...
  82. How do experienced traders identify false signals in the market?

    Learn how traders identify false signals in the market when using indicators and strategies to better identify true market ...
  83. How do I create a trading strategy with Bollinger Bands® and the Relative Strength ...

    Learn how technical analysts create a trading strategy using Bollinger Bands and the Relative Strength Index in conjunction ...
  84. What are the best technical indicators to complement the Force Index?

    Find out which technical tools pair best with the Force Index to generate and confirm trading signals, such as lagging indicators ...
  85. What are the main advantages of using an Equivolume Chart?

    Read about the main advantages of using equivolume charts, a price charting technique that incorporates volume into its visual ...
  86. What are the main disadvantages of using an Equivolume Chart?

    See why the innovative design of EquiVolume price charts creates some inherent disadvantages for traders who are used to ...
  87. What is the difference between forex Pivot Points and forex Levels of Support & resistance?

    Understand the differences between pivot points and levels of support/resistance in an asset's price movements, both in and ...
  88. How is an Evening Star pattern interpreted by analysts and traders?

    Identify the evening star candlestick pattern, and learn why it is interpreted by market analysts and traders as a bearish ...
  89. What are the best technical indicators to complement a forex Pivot Point strategy?

    Learn the best technical indicators used by traders and analysts to complement a forex trading strategy based on daily pivot ...
  90. How do I build a profitable strategy when spotting an Evening Star pattern?

    Create a trading strategy designed to take advantage of the evening star candlestick pattern indication of a market reversal ...
  91. How are Exhaustion Gap patterns interpreted by analysts and traders?

    Learn how to spot and interpret exhaustion gap patterns like traders and analysts do, and see why these patterns are considered ...
  92. How do I build a profitable strategy when spotting an Exhaustion Gap?

    Learn potentially very profitable trading strategies traders use to take advantage of a market reversal after identifying ...
  93. What are the main differences between Exhaustion Gaps and Breakaway Gaps?

    Read about the primary differences between two types of price chart gaps – breakaway and exhaustion – and how traders react ...
  94. How effective is creating trade entries after spotting an Exhaustion Gap pattern?

    Understand the components of the exhaustion gap pattern, how and why it occurs, and how it can be used to create an effective ...
  95. The 5 Most Important Virtual Currencies Other Than Bitcoin

    Bitcoin's success has spurred the launch of many virtual currencies. Here are some of the more popular ones.
  96. Is the Stock Correlation Strategy Effective?

    The synchronized movement among stocks and markets in recent years is challenging diversification.
  97. Earnings Quality, the Facebook Example

    When judging Facebook's quality of earnings it is important to understand the various sources of revenue and trends in those ...
  98. Protect Your Nest Egg From A Bear Market

    The economy has its ups and downs. Investors who take a disciplined approach and diversify their portfolio are better prepared ...
  99. Not All Online Trading Brokers Are Created Equal

    The online trading broker market is becoming more and more competitive. Small differences between them can add up to big ...
  100. Novice Trading Strategies

    How to use Investopedia’s Chart Advisor section to build efficient trading strategies.
  101. Top Russian Stocks For American Investors

    American investors looking to diversify their portfolio to include Russian stocks can do so easily by purchasing shares of ...
Frequently Asked Questions
  1. What does a double bottom tell a trader about the overall trend?

    Learn how a double bottom pattern forms on a price chart and why many traders consider double bottoms to be a sign of reversal ...
  2. What are the main differences between a double top and a double bottom?

    Identify double tops and double bottoms, and learn what each could mean for the security's current price trend. Discover ...
  3. What are common trading strategies used when identifying a double bottom

    Use simple, low-risk trading strategies to take advantage of a double bottom formation. Traders typically take one of these ...
  4. What is a common price target when identifying a double bottom?

    Learn how to identify a double bottom stock pattern and where to set a target selling price point to get the most out of ...
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