Investing - All Content

  1. How do hedge funds determine what assets to own?

    Learn about the various types of investments that hedge fund managers use, and explore basic hedge fund management trading ...
  2. Are Advisors Off Alternatives?

    With stocks surging, financial advisers and their wealthy clients are asking why they should continue to bother with poorly ...
  3. How do I use McGinley Dynamic Indicator to create a forex trading strategy?

    Discover how to use the McGinley dynamic indicator to confirm or reject trading signals produced by other technical indicators ...
  4. What are the main differences between momentum and trend?

    Learn to differentiate between trend and momentum, two seemingly similar concepts central to the understanding of technical ...
  5. What are the best technical indicators to complement the McGinley Dynamic Indicator?

    Read about the strengths and weaknesses of the McGinley dynamic indicator, and find out which technical indicators are best ...
  6. What is the McGinley Dynamic Indicator formula and how is it calculated?

    Discover the McGinley dynamic indicator, which is designed to resolve issues based on the subjective placement and static ...
  7. Why is a divergence of momentum and trend important for traders and investors?

    Understand what constitutes divergence between trend and momentum and why this signal is important to investors and traders ...
  8. What is the purpose of a hedge fund?

    Find out what a hedge fund is, how it is set up and why it is different than other forms of investment partnerships like ...
  9. What are the most common momentum oscillators used in day trading?

    Take a look at some commonly used momentum oscillators that can also be used for intraday trading, such as stochastic oscillators ...
  10. What are the most common momentum oscillators used in options trading?

    Read about some of the most common technical momentum oscillators that options traders use, and learn why momentum is a critical ...
  11. Where does a hedge fund get its money?

    Learn how a hedge fund is structured and how the managing partner of the fund goes about the process of finding and soliciting ...
  12. What is a common strategy traders implement when using the Money Flow indicator?

    Learn a common trading strategy traders implement with the money flow indicator to identify profitable trade entry and exit ...
  13. How do I build a profitable strategy when spotting a Morning Star pattern?

    Create a profitable trading strategy to use when spotting a morning star candlestick pattern that indicates a bullish market ...
  14. What is a common price target when identifying a double top?

    Learn about a common bear trading strategy once a double top pattern is identified, and discover how conservative and aggressive ...
  15. How do I Implement a forex strategy when spotting a Morning Star pattern?

    Learn how to design a forex trading strategy to use for trading the morning star candlestick pattern, an indicator of a bullish ...
  16. What are the main differences and similarities between Money Flow Index & On Balance ...

    Understand the basics of On Balance Volume and the Money Flow Index, including their similarities and differences in terms ...
  17. What is a common strategy traders implement when using a Moving Average Ribbon?

    Learn about how traders might use an exponential moving average ribbon strategy and what kinds of buy and sell signals are ...
  18. What are the best technical indicators to complement the Money Flow?

    Understand the most useful technical indicators to use in conjunction with the money flow index when establishing effective ...
  19. How are Morning Star patterns interpreted by analysts and traders?

    Understand the elements of the morning star candlestick pattern and how this reversal signal is interpreted by traders and ...
  20. What is the difference between interest coverage ratio and TIE?

    Read about the times interest earned, also known as the interest coverage ratio. Find out why this is an important ratio ...
  21. What is the difference between interest coverage ratio and DSCR?

    Understand the basics of the interest coverage ratio and the debt-service coverage ratio, including calculations and how ...
  22. What is a common strategy traders implement when using the McGinley Dynamic Indicator?

    Learn how to use the McGinley dynamic indicator to create a simple trading strategy that provides both trading signals and ...
  23. What are the major differences between the McClellan Oscillator and the McClellan ...

    Find out how the McClellan Summation Index differs from the McClellan Oscillator and why it is more useful for long-term ...
  24. What are the best technical indicators to complement the McClellan Oscillator?

    Discover why it is important to confirm trend signals created from the McClellan Oscillator and which technical indicators ...
  25. How do I implement a forex strategy when spotting a Marubozo pattern?

    Learn a forex trading strategy to use after spotting a marubozu candlestick pattern, and understand the common meaning of ...
  26. What is accrual accounting used for in finance?

    Read about the accrual method of accounting, its uses and rules, and why it is considered so important for investors, lenders ...
  27. What are common technical indicators used along with Donchian channels?

    Learn more about some of the most useful technical indicators that traders and analysts can use in conjunction with Donchian ...
  28. How effective are double bottoms in spotting a change in direction of the overall ...

    Learn more about the double bottom price chart pattern, a commonly bullish reversal indicator that can also be used to establish ...
  29. When are expenses and revenues counted in accrual accounting?

    Take an in-depth look at the treatment of revenues and expenses within the accrual method of accounting and learn why many ...
  30. 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 ...
  31. When does a business report gross margins?

    Learn how gross margins are calculated and when publicly traded companies release these figures. Explore consensus street ...
  32. 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 ...
  33. 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 ...
  34. 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 ...
  35. 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 ...
  36. 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 ...
  37. 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 ...
  38. 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 ...
  39. 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 ...
  40. 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 ...
  41. 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 ...
  42. 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 ...
  43. Mexicans Unsure about Mexican Reforms

    Two years into his first term, Mexican President Enrique Peña Nieto is following through on radical campaign promises he ...
  44. 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 ...
  45. 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 ...
  46. 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 ...
  47. 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 ...
  48. 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 ...
  49. 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 ...
  50. 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 ...
  51. 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 ...
  52. 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 ...
  53. 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), ...
  54. 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 ...
  55. 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 ...
  56. 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 ...
  57. 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 ...
  58. 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 ...
  59. 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 ...
  60. 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 ...
  61. 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 ...
  62. 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 ...
  63. 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 ...
  64. 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 ...
  65. 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 ...
  66. 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 ...
  67. 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 ...
  68. What does "In Escrow" Mean?

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

    An investment is an asset purchased with the expectation that it will generate income or appreciate over time. In finance, ...
  70. 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, ...
  71. 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 ...
  72. 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 ...
  73. 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 ...
  74. 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 ...
  75. 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 ...
  76. 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 ...
  77. 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 ...
  78. 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 ...
  79. 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 ...
  80. 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 ...
  81. 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 ...
  82. 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 ...
  83. 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 ...
  84. 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 ...
  85. 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 ...
  86. 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 ...
  87. 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 ...
  88. 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 ...
  89. 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 ...
  90. 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 ...
  91. 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 ...
  92. 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 ...
  93. 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 ...
  94. 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 ...
  95. 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 ...
  96. 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 ...
  97. 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 ...
  98. 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 ...
  99. 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 ...
  100. 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, ...
Frequently Asked Questions
  1. What happens to the company stock if a subsidiary gets spun off?

    Learn what happens to a company's stock if a subsidiary gets spun off. Spinoffs are typically bullish catalysts for a company ...
  2. Why would a company use a form of long-term debt to capitalize operations versus issuing equity?

    Learn about the different consequences of using long-term debt versus equity to raise capital for business activity, and ...
  3. Where can I find year-to-date (YTD) returns for benchmarks?

    Discover which financial data providers publish year-to-date benchmark performance. Find out which websites provide YTD price ...
  4. What Book Value Of Equity Per Share (BVPS) ratio indicates a buy signal?

    Find out more about book value of equity per share, what BVPS measures and how to determine what level of BVPS indicates ...
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