|
Commodity Channel Index
The commodity channel index (CCI) is an Oscillator_(technical_analysis), oscillator indicator that is used by Trader (finance), traders and investors to help identify Price action trading, price reversals, price extremes and trend strength when using technical analysis to analyse financial markets. History It was originally introduced by Donald Lambert in 1980. Since its introduction, the indicator has grown in popularity and has become a very common tool for traders to identify cyclical trends not only in commodities but also equities and currencies. The CCI can be adjusted to the timeframe of the market traded on by changing the averaging period. Calculation CCI measures a security's variation from the statistical mean. The CCI is calculated as the difference between the typical price of a commodity and its moving average (finance)#Simple moving average , simple moving average, divided by the mean absolute deviation of the typical price. The index is usually scaled by an i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Oscillator (technical Analysis)
An oscillator in technical analysis of financial markets is an indicator that informs if the price of a financial instrument is very high or very low, indicating whether it is overbought or oversold. This helps traders make decisions about when to trade (buy or sell) that instrument. Oscillators vary over time within a band, moving above and below a center line or between set levels. They are used to identify short-term overbought or oversold conditions. Examples Common oscillators include MACD, Momentum (technical analysis), momentum, Relative strength index, RSI, and Commodity channel index, CCI. ReferencesIntroduction to Technical Indicators and Oscillators Technical analysis Technical indicators {{finance-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trader (finance)
A trader is a person, firm, or entity in finance who buys and sells financial instruments, such as forex, cryptocurrencies, stocks, bonds, commodities, derivatives, and mutual funds, indices in the capacity of agent, hedger, arbitrager, or speculator. Duties and types The word "trader" appeared as early as 1863 in a universal dictionary as "trading man." Traders work for financial institutions as foreign exchange or securities dealers in the cash market and in the futures market, or for their own account as proprietary traders. They also include stock exchange traders, but not stockbrokers or lead brokers. Traders buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges, and the commodities exchanges. Several categories and designations for diverse kinds of traders are found in finance, including: * Bond trader. * Floor trader. *Hedge fund trader. * High-frequency trader. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investor
An investor is a person who allocates financial capital with the expectation of a future Return on capital, return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of property. Types of investments include Stock, equity, Bond (finance), debt, Security (finance), securities, real estate, infrastructure, currency, commodity, Exonumia, token, derivatives such as put and call Option (finance), options, Futures contract, futures, Forward contract, forwards, etc. This definition makes no distinction between the investors in the Primary market, primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. An investor who owns stock is a shareholder. Types of investors There are two types of investors: retail investors and institutional investors. A ''retail investor'' is also known as an ''individual investor''. There are several sub-typ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Action Trading
Price action trading is about reading what the market is doing, so you can deploy the right trading strategy to reap the maximum benefits. In simple words, price action is a trading technique in which a trader reads the market and makes subjective trading decisions based on the price movements, rather than relying on technical indicators or other factors. At its most simplistic, it attempts to describe the human thought processes invoked by experienced, non-disciplinary traders as they observe and trade their markets.Livermore 1940, chapter 1Mackay 1869Mandelbrot 2008, chapter 1Schwager 1984, chapter 23 Price action is simply how prices change - the action of price. It is most noticeable in markets with high Market liquidity, liquidity and Volatility (finance), price volatility, but anything that is traded freely (in price) in a market will per se demonstrate price action. Price action trading can be considered a part of the technical analysis, but it is highly complex compared to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Technical Analysis
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. As a type of active management, it stands in contradiction to much of modern portfolio theory. The efficacy of technical analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results.Osler, Karen (July 2000). "Support for Resistance: Technical Analysis and Intraday Exchange Rates," FRBNY Economic Policy Reviewabstract and paper here. It is distinguished from fundamental analysis, which considers a company's financial statements, health, and the overall state of the market and economy. History The principles of technical analysis are derived from hundreds of years of financial market data. Some aspects of technical analysis began to appear in Amste ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Markets
A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial markets as commodities. The term "market" is sometimes used for what are more strictly ''exchanges'', that is, organizations that facilitate the trade in financial securities, e.g., a stock exchange or commodity exchange. This may be a physical location (such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE), Bombay Stock Exchange (BSE) or Johannesburg Stock Exchange (JSE Limited)) or an electronic system such as NASDAQ. Much trading of stocks takes place on an exchange; still, corporate actions (mergers, spinoffs) are outside an exchange, while any two companies or people, for whatever reason, may agree to sell the stock from the one to the other without using an exchange. Trading of currencies and bonds is largely on a bi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Typical Price
In financial trading, typical price (sometimes called the pivot point) refers to the arithmetic average of the high, low, and closing prices for a given period. \text = \frac For example, consider a period of one day. If the high for that day was 1.2200, the low was 1.2080, and the closing price was 1.2150, then the typical price for that day would be: TP = (1.2200 + 1.2080 + 1.2150)/3 = 1.2143. Typical Price is mostly used as a component in various technical studies: Pivot Point, Commodity channel index The commodity channel index (CCI) is an Oscillator_(technical_analysis), oscillator indicator that is used by Trader (finance), traders and investors to help identify Price action trading, price reversals, price extremes and trend strength when usi ... (CCI), Money Flow Index (MFI), Volume Weighted Average (VWAP). in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Moving Average (finance)
In statistics, a moving average (rolling average or running average or moving mean or rolling mean) is a calculation to analyze data points by creating a series of averages of different selections of the full data set. Variations include: simple, cumulative, or weighted forms. Mathematically, a moving average is a type of convolution. Thus in signal processing it is viewed as a low-pass finite impulse response filter. Because the boxcar function outlines its filter coefficients, it is called a boxcar filter. It is sometimes followed by downsampling. Given a series of numbers and a fixed subset size, the first element of the moving average is obtained by taking the average of the initial fixed subset of the number series. Then the subset is modified by "shifting forward"; that is, excluding the first number of the series and including the next value in the series. A moving average is commonly used with time series data to smooth out short-term fluctuations and highlight longe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mean Absolute Deviation
The average absolute deviation (AAD) of a data set is the average of the absolute deviations from a central point. It is a summary statistic of statistical dispersion or variability. In the general form, the central point can be a mean, median, mode, or the result of any other measure of central tendency or any reference value related to the given data set. AAD includes the mean absolute deviation and the ''median absolute deviation'' (both abbreviated as MAD). Measures of dispersion Several measures of statistical dispersion are defined in terms of the absolute deviation. The term "average absolute deviation" does not uniquely identify a measure of statistical dispersion, as there are several measures that can be used to measure absolute deviations, and there are several measures of central tendency that can be used as well. Thus, to uniquely identify the absolute deviation it is necessary to specify both the measure of deviation and the measure of central tendency. The statis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commodity Channel Index (CCI)
The commodity channel index (CCI) is an oscillator indicator that is used by traders and investors to help identify price reversals, price extremes and trend strength when using technical analysis to analyse financial markets. History It was originally introduced by Donald Lambert in 1980. Since its introduction, the indicator has grown in popularity and has become a very common tool for traders to identify cyclical trends not only in commodities but also equities and currencies. The CCI can be adjusted to the timeframe of the market traded on by changing the averaging period. Calculation CCI measures a security's variation from the statistical mean. The CCI is calculated as the difference between the typical price of a commodity and its simple moving average, divided by the mean absolute deviation of the typical price. The index is usually scaled by an inverse factor of 0.015 to provide more readable numbers: :CCI = \frac\frac, where ''pt'' is the \text = \frac, SMA ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Buy And Hold
Buy and hold, also called position trading, is an investment strategy whereby an investor buys financial assets or non-financial assets such as real estate, to hold them long term, with the goal of realizing price appreciation, despite volatility. This approach implies confidence that the value of the investments will be higher in the future. Investors must not be affected by recency bias, emotions, and must understand their propensity to risk aversion. Investors must buy financial instruments that they expect to appreciate in the long term. Buy and hold investors do not sell after a decline in value. They do not engage in market timing (i.e. selling a security with the goal of buying it again at a lower price) and do not believe in calendar effects such as Sell in May. Buy and hold is an example of passive management. It has been recommended by Warren Buffett, Jack Bogle, Burton Malkiel, John Templeton, Peter Lynch, and Benjamin Graham since, in the long run, there is a hi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
