


The Moving Average Convergence/Divergence indicator is a momentum oscillator primarily used to trade trends. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries.
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Institutional trading involves buying and selling financial assets on behalf of institutions, such as big funds or investment banks. These large companies have dedicated teams consisting of analysts and traders who work together to make optimal trades.
Institutional trading refers to the buying and selling of financial assets by large organizations, like financial institutions, on behalf of their clients or members. These institutions manage large pools of capital and can significantly impact market prices and trends due to their size and trading volume. Unlike retail traders, institutional traders often have...
Options trading gives you the right or obligation to buy or sell a specific security on or by a specific date at a specific price. An option is a contract that's linked to an underlying asset, such as a stock or another security.
Advanced trading strategies usually involve multiple technical indicators and more complicated instruments, such as options and futures
Advanced trading encompasses a range of sophisticated techniques, strategies, and tools used by experienced traders to make informed decisions, manage risk, and capitalize on market opportunities. It involves a deeper understanding of market dynamics, technical analysis, and risk management principles, often utilizing complex instruments like options and futures.
Institutional traders buy and sell securities for accounts they manage for a group or institution. Retail traders buy or sell securities for personal accounts. Institutional traders usually trade larger sizes and can trade more exotic products.
Market psychology is the study of herd behavior and sentiment among economic actors, such as businesses, traders, or consumers. By studying the prevalence of greed, fear, or euphoria in the market, skilled traders can forecast future price movements and fluctuations in supply and demand.
Divergence occurs when the stochastic oscillator's peaks or troughs disagree with the price. For instance, if the stochastic makes lower highs while the price is rising, it indicates a bearish divergence. Likewise, higher stochastic lows against lower price lows indicate a bullish divergence.
'Support' and 'resistance' are terms for two respective levels on a price chart that appear to limit the market's range of movement. The support level is where the price regularly stops falling and bounces back up, while the resistance level is where the price normally stops rising and dips back down.
Support is a price point below the current market price that indicate buying interest. Resistance is a price point above the current market price that indicate selling interest.
Advanced trading strategies usually involve multiple technical indicators and more complicated instruments, such as options and futures.
Advanced trading strategies usually involve multiple technical indicators and more complicated instruments, such as options and futures.
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
Options data providers collect specific data points that can later be used to determine price movements over time. These price changes in the stock market help investors and brokers decide which stocks might be ideal to sell or buy given current market conditions.
RSI: Divergence appears when the RSI's highs or lows diverge from price. For example, if the price makes new lows but the RSI bottoms at higher levels, it signals bullish divergence; if the price makes new highs but the RSI peaks at lower levels, it signals bearish divergence.
In the stock market, divergence refers to a situation where the price of an asset moves in the opposite direction of a technical indicator, like an oscillator or another indicator. This discrepancy can signal a potential trend reversal or weakening momentum.