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Price Action Trading
The price action is a method of analysis of the basic movements of the price, to generate signals of entry and exit in trades and that stands out for its reliability and for not requiring the use of indicators. It is a form of technical analysis, since it ignores the fundamental factors of a security and looks primarily at the security's price history. What differentiates it from most forms of technical analysis is that its main focus is the relation of a security's current price to its past prices as opposed to values derived from that price history. This history includes swing highs and swing lows, trend lines, and support and resistance levels. 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 readily observed ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Liquidity
In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold. In a liquid market, the trade-off is mild: one can sell quickly without having to accept a significantly lower price. In a relatively illiquid market, an asset must be discounted in order to sell quickly. Money, or cash, is the most liquid asset because it can be exchanged for goods and services instantly at face value. Overview A liquid asset has some or all of the following features: It can be sold rapidly, with minimal loss of value, anytime within market hours. The essential characteristic of a liquid market is that there are always ready and willing buyers and sellers. It is similar to, but distinct from, market depth, which relates to the trade-off between quantit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Trend
A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time. A market trend can only be determined in hindsight, since at any time prices in the future are not known. Market terminology The terms "bull market" and "bear market" describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. The terms come from London's Exchange Alley in the early 18th century, where traders who engaged in naked short selling were called "bear-skin jobbers" because they sold a bear's skin (the s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Two Attempts Rule
2 (two) is a number, numeral and digit. It is the natural number following 1 and preceding 3. It is the smallest and only even prime number. Because it forms the basis of a duality, it has religious and spiritual significance in many cultures. Evolution Arabic digit The digit used in the modern Western world to represent the number 2 traces its roots back to the Indic Brahmic script, where "2" was written as two horizontal lines. The modern Chinese and Japanese languages (and Korean Hanja) still use this method. The Gupta script rotated the two lines 45 degrees, making them diagonal. The top line was sometimes also shortened and had its bottom end curve towards the center of the bottom line. In the Nagari script, the top line was written more like a curve connecting to the bottom line. In the Arabic Ghubar writing, the bottom line was completely vertical, and the digit looked like a dotless closing question mark. Restoring the bottom line to its original horizontal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trend
A fad or trend is any form of collective behavior that develops within a culture, a generation or social group in which a group of people enthusiastically follow an impulse (psychology), impulse for a short period. Fads are objects or behaviors that achieve short-lived popularity but fade away. Fads are often seen as sudden, quick-spreading, and short-lived. Fads include fad diet, diets, clothing, hairstyles, toys, and more. Some popular fads throughout history are toys such as yo-yos, hula hoops, and fad dances such as the Macarena (song), Macarena, Floss (dance), floss and the Twist (dance), twist. Similar to habits or Convention (norm), customs but less durable, fads often result from an activity or behavior being perceived as emotionally Popularity, popular or excited state, exciting within a peer group, or being deemed "peer pressure, cool" as often promoted by social networks.Kornblum (2007), p. 213. A fad is said to "catch on" when the number of people adopting it begins ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Slippage (finance)
With regard to futures contracts as well as other financial instruments, slippage is the difference between where the computer signaled the entry and exit for a trade and where actual clients, with actual money, entered and exited the market using the computer’s signals. Market impact, liquidity, and frictional costs may also contribute. Algorithmic trading is often used to reduce slippage, and algorithms can be backtested on past data to see the effects of slippage, but it is impossible to eliminate entirely. Measurement Using initial mid price Nassim Nicholas Taleb (1997) defines slippage as the difference between the average execution price and the initial midpoint of the bid and the offer for a given quantity to be executed. Using initial execution price Knight and Satchell mention a flow trader needs to consider the effect of executing a large order on the market and to adjust the bid-ask spread accordingly. They calculate the liquidity cost as the difference between the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Algorithm Trading
In mathematics and computer science, an algorithm () is a finite sequence of rigorous instructions, typically used to solve a class of specific problems or to perform a computation. Algorithms are used as specifications for performing calculations and data processing. More advanced algorithms can perform automated deductions (referred to as automated reasoning) and use mathematical and logical tests to divert the code execution through various routes (referred to as automated decision-making). Using human characteristics as descriptors of machines in metaphorical ways was already practiced by Alan Turing with terms such as "memory", "search" and "stimulus". In contrast, a heuristic is an approach to problem solving that may not be fully specified or may not guarantee correct or optimal results, especially in problem domains where there is no well-defined correct or optimal result. As an effective method, an algorithm can be expressed within a finite amount of space and t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trend Line Break
A fad or trend is any form of collective behavior that develops within a culture, a generation or social group in which a group of people enthusiastically follow an impulse for a short period. Fads are objects or behaviors that achieve short-lived popularity but fade away. Fads are often seen as sudden, quick-spreading, and short-lived. Fads include diets, clothing, hairstyles, toys, and more. Some popular fads throughout history are toys such as yo-yos, hula hoops, and fad dances such as the Macarena, floss and the twist. Similar to habits or customs but less durable, fads often result from an activity or behavior being perceived as emotionally popular or exciting within a peer group, or being deemed " cool" as often promoted by social networks.Kornblum (2007), p. 213. A fad is said to "catch on" when the number of people adopting it begins to increase to the point of being noteworthy. Fads often fade quickly when the perception of novelty is gone. Overview The specific nat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stop Order
An order is an instruction to buy or sell on a trading venue such as a stock market, bond market, commodity market, financial derivative market or cryptocurrency exchange. These instructions can be simple or complicated, and can be sent to either a broker or directly to a trading venue via direct market access. There are some standard instructions for such orders. Market order A market order is a buy or sell order to be executed immediately at the ''current'' ''market'' prices. As long as there are willing sellers and buyers, market orders are filled. Market orders are used when certainty of execution is a priority over the price of execution. A market order is the simplest of the order types. This order type does not allow any control over the price received. The order is filled at the best price available at the relevant time. In fast-moving markets, the price paid or received may be quite different from the last price quoted before the order was entered. A market order may be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pull-back
In mathematics, a pullback is either of two different, but related processes: precomposition and fiber-product. Its dual is a pushforward. Precomposition Precomposition with a function probably provides the most elementary notion of pullback: in simple terms, a function f of a variable y, where y itself is a function of another variable x, may be written as a function of x. This is the pullback of f by the function y. f(y(x)) \equiv g(x) It is such a fundamental process that it is often passed over without mention. However, it is not just functions that can be "pulled back" in this sense. Pullbacks can be applied to many other objects such as differential forms and their cohomology classes; see * Pullback (differential geometry) * Pullback (cohomology) Fiber-product The pullback bundle is an example that bridges the notion of a pullback as precomposition, and the notion of a pullback as a Cartesian square. In that example, the base space of a fiber bundle is pulled back, i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Doji
The doji (jp:どうじ 同事, ''same matter'') is a commonly found pattern in a candlestick chart of financially traded assets ( stocks, bonds, futures, etc.) in technical analysis. It is characterized by being small in length—meaning a small trading range—with an opening and closing price that are virtually equal. The efficacy of technical analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable. The doji represents indecision in the market. A doji is not as significant if the market is not clearly trending, as non-trending markets are inherently indicative of indecision. If the doji forms in an uptrend or downtrend, this is normally seen as significant, as it is a signal that the buyers are losing conviction when formed in an uptrend and a signal that sellers are losing conviction if seen in a downtrend. Types of Doji A doji is a key trend reversal indicator. This is particularly true when there is a high ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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