|
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] |
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. A liquid asset is an asset which can be converted into cash within a relatively short period of time, or cash itself, which can be considered 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 wil ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Trend
A market trend is a perceived tendency of the 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 future market trend can only be determined in hindsight, since at any time prices in the future are not known. This fact makes market timing inherently a game of educated guessing rather than a certainty. Past trends are identified by drawing lines, known as trendlines, that connect price action making higher highs and higher lows for an uptrend, or lower lows and lower highs for a downtrend. Market terminology The terms "bull market" and "bear market" describe upward and downward market tr ... [...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 the only even prime number. Because it forms the basis of a duality, it has religious and spiritual significance in many cultures. Mathematics The number 2 is the second natural number after 1. Each natural number, including 2, is constructed by succession, that is, by adding 1 to the previous natural number. 2 is the smallest and the only even prime number, and the first Ramanujan prime. It is also the first superior highly composite number, and the first colossally abundant number. An integer is determined to be even if it is divisible by two. When written in base 10, all multiples of 2 will end in 0, 2, 4, 6, or 8; more generally, in any even base, even numbers will end with an even digit. A digon is a polygon with two sides (or edges) and two vertices. Two distinct points in a plane are always sufficient to define a unique line in a nontr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trend
A fad, trend, or craze 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 time 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 events. 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 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 or going viral. Fads often fade quickly when the perception of nove ... [...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. 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 execution ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Algorithmic Trading
Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans. It is widely used by investment banks, pension funds, mutual funds, and hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. However, it is also available to private traders using simple retail tools. The term algorithmic trading is often used synonymously with automated trading system. These encompass a variety of trading strategies, some of which are based on formulas and results ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trend Line Break
A fad, trend, or craze 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 time 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 events. 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 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 or going viral. Fads often fade quickly when the perception of novelty is gone. ... [...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 ... [...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, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Doji
The 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 trading volume following an extended move in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
