FAQs tagged as

Technical Analysis

  1. What are the best indicators for evaluating technology stocks?

  2. What technical indicators can I use to find undervalued stock?

  3. How do I start using technical analysis?

  4. What does it mean when there is "price action"?

  5. What is the difference between an options contract and a futures contract?

  6. What is the McGinley Dynamic?

  7. Do stocks that trade with a large daily volume generally have less volatility?

  8. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  9. How do I use the Nova/Ursa ratio?

  10. How do I employ a cash-and-carry trade?

  11. What is high-frequency trading?

  12. What is the Coppock curve?

  13. How do I use a premium put convertible?

  14. Is technical analysis used only to analyze stocks?

  15. My brokerage firm won't allow naked option positions. What does this mean?

  16. Why do some stock quotes appear in bold print in the newspaper?

  17. What do the different colored candlesticks mean?

  18. What is the difference between fast and slow stochastics in technical analysis?

  19. What do the "BxA" numbers on my brokerage's trading screen mean?

  20. Can an option have a negative strike price?

  21. At what point in the ordering process does a broker charge commission?

  22. What's the difference between a regular option and an exotic option?

  23. What is the difference between a logarithmic price scale and a linear one?

  24. How can I determine a stock's next resistance level or target price?

  25. What is the best method of analysis for forex trading?

  26. In the forex market, how is the closing price of a currency pair determined?

  27. I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to it if it dips below $27, and I want to do all this in one trading order. What type of order should I use?

  28. What is the best time of the day to trade?

  29. Is scalping a viable forex trading strategy?

  30. What is the cheapest, fastest way to research, buy and trade stock?

  31. Would a slow stochastic be effective in day trading?

  32. What do the numbers that follow the bid and ask numbers in stock quotes represent?

  33. What are managed futures?

  34. Can technical analysis be called a self-fulfilling prophecy?

  35. What is the haircut rate imposed by clearing corporations?

  36. Why do futures' prices converge upon spot prices during the delivery month?

  37. What is the "random walk theory" and what does it mean for investors?

  38. What is Fibonacci retracement, and where do the ratios that are used come from?

  39. How long does a stock that has done a reverse split keep the letter "D" at the end of its symbol?

  40. Do noise traders have any long-term effect on stock prices?

  41. What is the pitchfork indicator that I keep hearing about, and how do I use it?

  42. How is spread calculated when trading in the forex market?

  43. What do the bracketed numbers following a technical indicator mean?

  44. Short selling vs. purchasing a put option: how do the payoffs differ?

  45. Do stop or limit orders protect you against gaps in a stock's price?

  46. What is a GTEM order?

  47. Who is Mr. Copper?

  48. What is the difference between fundamental and technical analysis?

  49. How can I hedge against rising diesel prices?

  50. Is tracking error a significant measure for determining ex-post risk?

  51. What is a virtual trailing stop order (VTSO)?

  52. How are the interest charges calculated on my margin account?

  53. I placed a limit order to buy a stock after the market closed, but the stock's price gapped above the entry price and my order never got filled. How can I prevent this from happening?

  54. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they mean, how do they differ from each other, and what causes them to act as support or resistance?

  55. Does a strong trend (ADX > = 40) cause an increase in volatility?

  56. Why do option volume quotes differ on different websites?

  57. What technical tools can I use to measure momentum?

  58. Where can I find information about pre- and after-hours trading on the NYSE and the Nasdaq?

  59. How is the Parabolic SAR used in trading?

  60. How does pyramiding work?

  61. What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" mean?

  62. What is the difference between a simple moving average and an exponential moving average?

  63. When does one sell a put option, and when does one sell a call option?

  64. What happens to my call options if the underlying company is bought out?

  65. What is a Bermuda swaption?

  66. What does it mean to use technical divergence in trading?

  67. Should I buy options that are in the money or out of the money?

  68. Where do I place my target when the price of a stock breaks out of a technical chart pattern?

  69. How can I use market breadth to my advantage?

  70. What's the difference between a straddle and a strangle?

  71. How do I measure option liquidity?

  72. Why would my stock's value decline despite good news being released?

  73. How can a futures trader exit a position prior to expiration?

  74. How do I use a "basket" option?

  75. What is the difference between options and futures?

  76. Can I make money using put options when prices are going up?

  77. What is the difference between leverage and margin?

  78. What do you call a candlestick with no shadows, and what does it mean?

  79. What does it mean to book the basis?

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