Day Trading

Day trading is the practice of buying and selling financial instruments within the same trading day, closing all positions before the market closes. Day traders aim to profit from short-term price movements and avoid overnight risk.

Technical Analysis

Technical analysis is a method of evaluating securities by analyzing historical price and volume data. Technical analysts use chart patterns, indicators, and other tools to identify trends, support and resistance levels, and potential entry and exit points.

Fundamental Analysis

Fundamental analysis is the evaluation of a security based on its intrinsic value. It involves assessing financial statements, economic factors, and company management to determine the overall health and growth potential of a company.

Candlestick Charts

Candlestick charts are a type of financial chart that visually displays price movements using “candles.” Each candle represents a specific time period and displays the open, high, low, and close prices, with different colors for rising and falling prices.

Moving Average

A moving average is a technical analysis tool that calculates the average price of a security over a specific period. It helps smooth out price fluctuations and identifies trends by removing short-term noise.

Support and Resistance

Support and resistance levels are horizontal price levels at which the price of a security tends to stop and reverse. Support represents a lower price level where buying pressure exceeds selling pressure, while resistance is a higher price level where selling pressure exceeds buying pressure.

Trendlines

Trendlines are lines drawn on a price chart to connect a series of highs or lows, representing support or resistance levels. They are used to help identify the direction of the market and potential reversal points.

Breakouts

Breakouts occur when the price of a security moves through a previously established support or resistance level. They often signify a continuation or change in the prevailing trend and can present trading opportunities.

Reversals

Reversals are changes in the direction of a price trend, either from an uptrend to a downtrend or vice versa. Traders look for reversal signals to time their entry and exit points.

Consolidation

Consolidation is a period of sideways price movement, during which the price of a security trades within a relatively tight range. It occurs when supply and demand are roughly equal and often precedes a breakout or reversal.

Volume

Volume is the total number of shares or contracts traded for a security during a specific time period. It is an important indicator of market activity and liquidity, as higher volume typically indicates stronger price moves and interest in a security.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and helps identify overbought and oversold conditions, as well as potential trend reversals.

Bollinger Bands

Bollinger Bands are a set of three lines plotted around a security’s price movement. The middle line is a moving average, while the upper and lower bands are standard deviations away from the moving average. They are used to measure volatility and identify potential overbought and oversold conditions.

Average True Range (ATR)

The Average True Range (ATR) is a technical analysis indicator that measures market volatility by calculating the average range between a security’s high and low prices over a specified period. Traders use ATR to gauge the volatility and set stop-loss and take-profit levels.

Fibonacci Retracement

Fibonacci retracement is a technical analysis tool that uses key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, and 78.6%) to identify potential support and resistance levels after a significant price movement. Traders use these levels to predict potential reversals or continuation of a trend.

Ichimoku Cloud

The Ichimoku Cloud is a comprehensive technical analysis indicator that combines multiple moving averages, support and resistance levels, and momentum indicators. It provides a visual representation of potential trend direction, strength, and key price levels.

Stochastics

Stochastics is a momentum indicator that compares a security’s closing price to its price range over a specific period. It consists of two lines, %K and %D, and helps identify overbought and oversold conditions as well as potential trend reversals.

Market Order

A market order is an instruction to buy or sell a security immediately at the best available price. It is the simplest and fastest way to enter or exit a trade but can be subject to slippage in fast-moving or illiquid markets.

Limit Order

A limit order is an instruction to buy or sell a security at a specified price or better. It allows traders to have more control over the execution price but may not be filled if the specified price is not reached.

Stop Order

A stop order is an instruction to buy or sell a security once it reaches a specific price, known as the stop price. It is used to protect profits or limit losses by triggering a market order when the stop price is reached.

Stop-Loss Order

A stop-loss order is a type of stop order used to limit potential losses on a position. It automatically triggers a market order to sell a security when its price reaches a predetermined level.

Take-Profit Order

A take-profit order is an instruction to close a position once the security reaches a predetermined profit level. It helps traders lock in profits and eliminate the need for constant monitoring.

Trailing Stop

A trailing stop is a type of stop-loss order that adjusts automatically as the price of a security moves in a favorable direction. It helps protect profits while allowing for potential further gains.

Bid-Ask Spread

The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a security. It represents the cost of trading and is influenced by factors such as liquidity and market volatility.

Market Makers

Market makers are firms or individuals that provide liquidity in financial markets by continuously quoting buy and sell prices for securities. They profit from the bid-ask spread and help facilitate efficient trading.

Margin

Margin is the practice of borrowing money from a broker to trade financial instruments, allowing for greater potential profits but also increasing the risk of losses. The borrowed funds are secured by the trader’s account balance and are subject to interest charges.

Leverage

Leverage is the use of borrowed funds to amplify potential returns on an investment. In trading, it allows traders to control larger positions with a smaller amount of capital, increasing both potential profits and risk.

Short Selling

Short selling is the practice of selling borrowed securities with the expectation that their price will decline, allowing the trader to buy them back at a lower price and profit from the difference. It carries additional risks, such as potentially unlimited losses and margin requirements.

Intraday

Intraday refers to price movements and trading activity that occur within a single trading day. Intraday traders aim to profit from short-term price fluctuations and close all positions before the market closes.

Scalping

Scalping is a high-frequency, short-term trading strategy that involves entering and exiting multiple trades within minutes or seconds, aiming to capture small price movements. It requires fast execution, strict risk management, and discipline.

Swing Trading

Swing trading is a trading strategy that focuses on capturing gains from price movements over a period of several days to weeks. Swing traders use a combination of technical and fundamental analysis to identify trading opportunities and hold positions longer than day traders but shorter than long-term investors.

Position Trading

Position trading is a longer-term trading strategy that involves holding positions for weeks, months, or even years. Position traders focus on long-term trends and use a combination of fundamental and technical analysis to make their investment decisions.

Pattern Day Trader (PDT)

A pattern day trader is a trader who executes four or more day trades within five business days, using a margin account. Regulatory authorities, such as FINRA, impose specific rules and requirements on pattern day traders, including minimum account balances and trading restrictions.

Risk Management

Risk management is the process of identifying, assessing, and mitigating potential losses in trading. It involves using various techniques, such as setting stop-loss orders, diversifying positions, and determining appropriate position sizes, to protect trading capital and minimize losses.

Risk-Reward Ratio

The risk-reward ratio is a measure of the potential profit of a trade compared to its potential loss. It helps traders evaluate the attractiveness of a trade and determine whether the potential return justifies the risk.

Slippage

Slippage is the difference between the expected execution price of a trade and the actual execution price. It typically occurs in fast-moving or illiquid markets when the market price changes before an order is filled, resulting in a less favorable price for the trader.

Trading Plan

A trading plan is a comprehensive, written document outlining a trader’s strategy, goals, risk tolerance, and trading rules. It serves as a roadmap for trading decisions and helps maintain discipline and consistency in the face of market fluctuations.

Trading Journal

A trading journal is a record of all trading activities, including entries, exits, profits, losses, and reasoning behind each trade. It helps traders analyze their performance, identify strengths and weaknesses, and improve their decision-making over time.

Trading Platform

A trading platform is software that allows traders to access financial markets, execute trades, and manage their portfolios. It provides tools for charting, technical analysis, order execution, and other essential trading functions.

Timeframes

Timeframes refer to the duration of a chart used in technical analysis. They range from short-term (minutes or hours) to long-term (daily, weekly, or monthly) and help traders identify trends, patterns, and potential trading opportunities.

Liquidity

Liquidity is the ability to quickly buy or sell a security without causing significant price movements. High liquidity generally results in tighter bid-ask spreads and lower transaction costs, making it easier for traders to enter and exit positions.

Gap

A gap is a discontinuity in a security’s price chart, where the price opens significantly higher or lower than the previous day’s close. Gaps can be caused by factors such as earnings announcements, news events, or changes in market sentiment.

Float

Float refers to the number of a company’s outstanding shares that are available for trading by the public. It excludes shares held by insiders, employees, or large institutional investors. A lower float can result in higher volatility and price swings.

Initial Public Offering (IPO)

An initial public offering (IPO) is the process by which a company issues shares to the public for the first time. It allows companies to raise capital and provides investors with an opportunity to invest in the company’s stock.

Market Capitalization

Market capitalization is the total value of all outstanding shares of a publicly-traded company. It is calculated by multiplying the stock’s current price by the total number of outstanding shares and is used to classify companies by size.

Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is a US regulatory agency responsible for enforcing federal securities laws, regulating the securities industry, and protecting investors.

Financial Industry Regulatory Authority (FINRA)

The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees brokerage firms and their registered representatives in the United States. It enforces rules and regulations, licenses and educates brokers, and resolves disputes between investors and brokers.

Order Book

An order book is an electronic list of buy and sell orders for a specific security, organized by price level. It shows the depth of the market, including bid and ask prices, order sizes, and the number of orders at each price level.

Level 2

Level 2 data displays the full order book for a security, showing the bid and ask prices and sizes at each price level. It provides a more detailed view of the market and is used by traders to make informed trading decisions.

Time and Sales

Time and sales is a real-time data feed that shows the time, price, and volume of every executed trade for a specific security. It helps traders track market activity, gauge liquidity, and identify trading opportunities.

Direct Access Trading (DAT)

Direct access trading (DAT) is a type of trading system that allows traders to directly route their orders to various market centers, bypassing traditional brokers. It offers faster execution, more control over order routing, and lower commissions.

ECN (Electronic Communication Network)

An electronic communication network (ECN) is a digital platform that connects buyers and sellers, facilitating the trading of financial instruments. ECNs provide greater transparency, faster execution, and reduced costs compared to traditional market makers.

Market Sentiment

Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It can be bullish (positive) or bearish (negative) and is influenced by factors such as news events, economic indicators, and investor psychology.

Trading Psychology

Trading psychology refers to the emotional and mental aspects of trading, including fear, greed, discipline, and decision-making. Mastering trading psychology is crucial for long-term success, as it helps traders manage emotions and consistently execute their trading plans.

Overbought

A security is considered overbought when its price has risen significantly and is trading at an unsustainable level, suggesting that a reversal or pullback may be imminent. Technical indicators such as RSI and stochastics can help identify overbought conditions.

Oversold

A security is considered oversold when its price has fallen significantly and is trading at an unsustainably low level, suggesting that a reversal or bounce may be imminent. Technical indicators such as RSI and stochastics can help identify oversold conditions.

Bullish

Bullish refers to a positive or optimistic outlook on a security or financial market. Bullish traders expect prices to rise and may take long positions or use other strategies to profit from upward price movements.

Bearish

Bearish refers to a negative or pessimistic outlook on a security or financial market. Bearish traders expect prices to fall and may take short positions or use other strategies to profit from downward price movements.

Pivots

Pivot points are technical analysis tools used to identify potential support and resistance levels based on the previous day’s high, low, and closing prices. They are commonly used by day traders and short-term traders to determine entry and exit points.

Round Numbers

Round numbers are price levels that end in 0 or 5, such as $10, $20, or $25. They often act as psychological support and resistance levels, as traders may be more likely to place orders at these levels.

High-Frequency Trading (HFT)

High-frequency trading (HFT) is a form of algorithmic trading that uses sophisticated technology to execute a large number of trades at extremely high speeds. HFT firms aim to profit from market inefficiencies and short-term price movements, often holding positions for very brief periods.

Algorithmic Trading

Algorithmic trading is the use of computer algorithms to execute trades automatically, based on predefined rules and strategies. It can improve trading efficiency, reduce human error, and allow for more consistent execution of trading strategies.

Arbitrage

Arbitrage is the practice of exploiting price differences between two or more markets or financial instruments. Traders buy an asset in one market and sell it simultaneously in another, profiting from the price discrepancy.

VWAP (Volume Weighted Average Price)

The volume weighted average price (VWAP) is a trading benchmark that calculates the average price of a security, weighted by the volume of each transaction. It is often used by institutional traders to assess execution quality and minimize market impact.

Momentum

Momentum is the rate of acceleration in a security’s price, often measured by technical indicators such as moving averages or the rate of change. Traders use momentum to identify trends and potential entry and exit points.

Price Action

Price action is the analysis of a security’s price movement over time, using historical price data and chart patterns. Traders use price action to identify trends, support and resistance levels, and potential trading opportunities.

Elliott Wave Theory

Elliott Wave Theory is a form of technical analysis that identifies recurring patterns in market price movements, known as waves. It is based on the idea that markets move in predictable cycles and can help traders forecast future price movements.

Harmonic Patterns

Harmonic patterns are a type of technical analysis that identifies geometric price patterns based on Fibonacci ratios. They are used to predict potential reversals and provide entry and exit points for trades.

Gann Theory

Gann Theory is a technical analysis method developed by W.D. Gann that uses geometric angles, time cycles, and price levels to predict future market movements. It is based on the idea that markets move in predictable patterns influenced by geometry and time.

Divergence

Divergence occurs when a security’s price and an associated technical indicator move in opposite directions, suggesting a potential reversal or weakening of the current trend. It is often used in conjunction with indicators such as RSI or MACD.

Convergence

Convergence occurs when a security’s price and an associated technical indicator move in the same direction, confirming the strength of the current trend. It is often used in conjunction with indicators such as moving averages or MACD.

Moving Average Convergence Divergence (MACD)

The Moving Average Convergence Divergence (MACD) is a technical indicator that measures the relationship between two moving averages of a security’s price. It is used to identify trend changes, potential entry and exit points, and momentum shifts.

On-Balance Volume (OBV)

On-Balance Volume (OBV) is a technical indicator that measures buying and selling pressure by adding volume on up days and subtracting volume on down days. It is used to confirm price trends and identify potential reversals.

Money Flow Index (MFI)

The Money Flow Index (MFI) is a technical indicator that measures the inflow and outflow of money into a security over a specific period. It is used to identify overbought and oversold conditions and potential trend reversals.

Commodity Channel Index (CCI)

The Commodity Channel Index (CCI) is a technical indicator that measures the deviation of a security’s price from its average price, relative to its typical price movements. It is used to identify overbought and oversold conditions, as well as trend reversals.

Parabolic SAR

The Parabolic SAR (Stop and Reversal) is a technical indicator that calculates a series of stop loss levels for a security, helping traders identify potential trend reversals and optimal exit points. It is often used in conjunction with other technical indicators and chart patterns.

ADX (Average Directional Index)

The Average Directional Index (ADX) is a technical indicator that measures the strength of a market trend, regardless of its direction. It is used to determine if a security is in a strong trend or a range-bound market.

Keltner Channels

Keltner Channels are a technical analysis tool that creates an envelope around a security’s price, based on its average true range and a moving average. They are used to identify overbought and oversold conditions, potential breakouts, and trend reversals.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of a data set. In trading, it is often used to measure price volatility and as a component of other technical indicators, such as Bollinger Bands.

Aroon Indicator

The Aroon Indicator is a technical analysis tool that measures the strength and duration of a trend by comparing the time it takes for prices to reach their highest and lowest points over a specific period. It helps traders identify emerging trends and potential reversals.

Chaikin Oscillator

The Chaikin Oscillator is a technical indicator that measures the momentum of the Accumulation/Distribution Line by subtracting a longer-term exponential moving average from a shorter-term exponential moving average. It is used to identify trend reversals and potential trading opportunities.

Dark Pool

A dark pool is a private, off-exchange trading venue where large institutional investors can execute trades anonymously, minimizing market impact and reducing transaction costs. Dark pools offer greater liquidity and price improvement opportunities but lack the transparency of public markets.

Block Trade

A block trade is a large transaction involving a significant number of shares or a high monetary value, typically executed by institutional investors. Block trades are usually negotiated privately and executed off-exchange to minimize market impact.

Short Interest

Short interest is the total number of shares of a security that have been sold short but have not yet been covered or closed out. It is used as a sentiment indicator, as high short interest can signal bearish sentiment or potential short squeezes.

Short Squeeze

A short squeeze occurs when a heavily shorted security experiences a rapid increase in price, forcing short sellers to buy back their positions to cover their losses. This buying pressure can exacerbate the price increase, leading to a temporary price spike.

Margin Call

A margin call is a demand by a broker for a trader to deposit additional funds or securities to maintain the minimum required equity in a margin account. Margin calls occur when the value of the account falls below the maintenance margin requirement.

Trading Halts

Trading halts are temporary suspensions of trading in a security, usually triggered by specific events, such as news announcements, technical issues, or extreme price volatility. They are designed to protect investors and maintain orderly markets.

Circuit Breakers

Circuit breakers are market-wide mechanisms that temporarily halt trading if a major stock index experiences a significant decline within a short period. They are intended to prevent panic selling and restore market stability.

Stock Split

A stock split is a corporate action that increases the number of a company’s outstanding shares by issuing additional shares to existing shareholders. This reduces the stock’s price per share, making it more accessible to a wider range of investors.

Reverse Stock Split

A reverse stock split is a corporate action that reduces the number of a company’s outstanding shares by consolidating them into fewer shares. This increases the stock’s price per share, often to meet minimum price requirements for continued listing on an exchange.

Dividends

Dividends are cash payments made by a company to its shareholders, typically distributed on a regular basis. They represent a portion of the company’s profits and serve as a way for companies to share their success with investors.

Earnings Reports

Earnings reports are financial statements released by publicly traded companies, typically on a quarterly basis. They provide insight into a company’s financial performance, including revenue, expenses, and net income, and can significantly impact stock prices.

Economic Indicators

Economic indicators are statistical data points that provide insight into the health of an economy. They include measures such as GDP, unemployment rate, inflation, and interest rates. Traders monitor these indicators to gauge market sentiment and anticipate potential market movements.

FOMC (Federal Open Market Committee)

The Federal Open Market Committee (FOMC) is the monetary policymaking body of the U.S. Federal Reserve. It meets regularly to set interest rates, adjust monetary policy, and manage the money supply, with significant implications for financial markets.

Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is the total value of goods and services produced by a country’s economy during a specific period. It is a key measure of economic growth and is closely monitored by traders and investors.

Unemployment Rate

The unemployment rate is the percentage of the labor force that is actively seeking employment but unable to find work. It is an important economic indicator that reflects the health of the job market and can influence market sentiment.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, resulting in a decrease in the purchasing power of money. Central banks monitor inflation to adjust monetary policy and maintain price stability.

Interest Rates

Interest rates are the cost of borrowing money, expressed as a percentage of the principal amount. They are determined by central banks and have a significant impact on financial markets, as they influence borrowing costs, investment decisions, and currency values.

Federal Funds Rate

The federal funds rate is the interest rate at which banks lend reserve balances to other banks on an overnight basis. It is set by the Federal Reserve and serves as a benchmark for other short-term interest rates, influencing borrowing costs and investment decisions.

Quantitative Easing (QE)

Quantitative easing (QE) is a monetary policy tool used by central banks to inject liquidity into the financial system by purchasing large amounts of government bonds and other assets. It aims to lower interest rates, stimulate economic growth, and stabilize financial markets.

Pivot Points

Pivot points are technical analysis tools that help traders identify potential support and resistance levels, based on a security’s high, low, and closing prices from the previous trading session. They are used to anticipate potential price reversals and breakout points.

Cup and Handle Pattern

The cup and handle pattern is a bullish chart pattern that signals a potential continuation of an uptrend. It consists of a rounded “cup” shape followed by a smaller “handle” consolidation, typically leading to a breakout to the upside.

Head and Shoulders Pattern

The head and shoulders pattern is a bearish reversal chart pattern that indicates a potential change from an uptrend to a downtrend. It consists of a peak (head) between two lower peaks (shoulders) and is confirmed by a break below the neckline support.

Ascending Triangle

The ascending triangle is a bullish continuation chart pattern that signals a potential breakout to the upside. It is characterized by a series of higher lows converging toward a horizontal resistance level, indicating increasing buying pressure.

Descending Triangle

The descending triangle is a bearish continuation chart pattern that signals a potential breakout to the downside. It is characterized by a series of lower highs converging toward a horizontal support level, indicating increasing selling pressure.

Flag and Pennant Patterns

Flag and pennant patterns are short-term continuation chart patterns that indicate a temporary pause within a strong trend. Flags are small rectangular shapes, while pennants are small symmetrical triangles. Both patterns typically lead to a continuation of the prevailing trend.

Rising Wedge

The rising wedge is a bearish reversal chart pattern that signals a potential change from an uptrend to a downtrend. It is characterized by a series of higher highs and higher lows converging in an upward sloping wedge shape, indicating weakening buying pressure.

Falling Wedge

The falling wedge is a bullish reversal chart pattern that signals a potential change from a downtrend to an uptrend. It is characterized by a series of lower lows and lower highs converging in a downward sloping wedge shape, indicating weakening selling pressure.

Multiple Time Frame Analysis

Multiple time frame analysis is a trading technique that involves analyzing a security’s price action on different time frames to gain a broader perspective of the market and improve decision-making. It helps traders identify trends, support and resistance levels, and potential entry and exit points.

Relative Performance

Relative performance is a comparison of a security’s price performance to that of a benchmark index, sector, or another security. It is used to identify outperforming and underperforming assets and inform investment decisions.

Market Breadth

Market breadth is a measure of the overall strength of a market, based on the number of advancing stocks compared to the number of declining stocks. It helps traders assess the health of a market trend and identify potential reversals.

Advance-Decline Line (AD Line)

The Advance-Decline Line (AD Line) is a market breadth indicator that tracks the cumulative difference between the number of advancing and declining stocks over a specific period. It is used to confirm market trends and identify potential reversals.

Cumulative Volume Index (CVI)

The Cumulative Volume Index (CVI) is a market breadth indicator that measures the cumulative difference between the volume of advancing and declining stocks. It is used to assess the strength of a market trend and identify potential reversals.

New Highs-New Lows Index (NH-NL)

The New Highs-New Lows Index (NH-NL) is a market breadth indicator that measures the difference between the number of stocks reaching new 52-week highs and the number of stocks reaching new 52-week lows. It is used to assess market strength and identify potential trend reversals.

Rate of Change (ROC)

The Rate of Change (ROC) is a momentum indicator that measures the percentage change in price between the current price and the price a specific number of periods ago. It is used to identify overbought and oversold conditions, as well as potential trend reversals.

Linear Regression

Linear regression is a statistical method used in trading to model the relationship between a dependent variable (e.g., stock price) and one or more independent variables (e.g., trading volume, economic indicators). It helps traders identify trends and make predictions about future price movements.

Chandelier Exit

The Chandelier Exit is a volatility-based trailing stop indicator that helps traders manage risk and protect profits by setting stop-loss levels based on the average true range (ATR) of a security. It is designed to keep traders in a trend until the trend reverses.

Hull Moving Average (HMA)

The Hull Moving Average (HMA) is a technical indicator that combines the speed of a weighted moving average with the smoothness of a simple moving average. It is used to identify trends, reduce noise, and generate entry and exit signals.

Know Sure Thing (KST) Oscillator

The Know Sure Thing (KST) Oscillator is a momentum indicator that combines multiple smoothed rate-of-change calculations to produce a single trend-following oscillator. It is used to identify potential trend reversals and generate buy and sell signals.

Narrow Range Bar (NRB)

The Narrow Range Bar (NRB) is a price bar with a smaller range than the previous bars. It signals a potential breakout or trend reversal, as it indicates a period of consolidation and reduced volatility before a significant price movement.

Price Channels

Price channels are technical analysis tools that plot parallel lines above and below a security’s price, based on its high and low prices over a specific period. They are used to identify potential breakouts, trend reversals, and support and resistance levels.

Price Rate of Change (PROC)

The Price Rate of Change (PROC) is a momentum indicator that measures the rate at which a security’s price changes over a specific period. It is used to identify potential trend reversals, overbought and oversold conditions, and momentum divergences.

Price Volume Trend (PVT)

The Price Volume Trend (PVT) is a technical indicator that combines price and volume data to measure the strength of a price trend. It is used to confirm price movements, identify potential trend reversals, and detect divergences between price and volume.

Trend Intensity Index (TII)

The Trend Intensity Index (TII) is a technical indicator that measures the strength of a trend by comparing the average price change over a specific period to the average true range. It is used to identify strong trends and potential entry and exit points.

Value Area

The value area is a concept used in volume profile analysis that represents the price range where a specified percentage of the total trading volume occurred, typically 70%. It is used to identify areas of strong support and resistance and potential price reversals.

Volume Profile

Volume profile is a charting technique that displays the distribution of trading volume across different price levels. It helps traders identify areas of high buying and selling interest, support and resistance levels, and potential price reversals.

Volume-Weighted Moving Average (VWMA)

The Volume-Weighted Moving Average (VWMA) is a technical indicator that calculates the average price of a security, weighted by its trading volume. It emphasizes periods with higher trading activity, making it more sensitive to price changes and useful for identifying trends and potential reversals.

Wyckoff Method

The Wyckoff Method is a technical analysis approach developed by Richard D. Wyckoff that focuses on understanding market structure, price action, and volume to identify potential trading opportunities. It emphasizes the importance of supply and demand, accumulation and distribution, and market phases in guiding trading decisions.

Z-Score

The Z-score is a statistical measurement that calculates the number of standard deviations a data point is from the mean. In trading, it is often used to identify potential price reversals and gauge the significance of price movements relative to historical price behavior.

Acceleration Bands

Acceleration Bands are a technical indicator that plots parallel bands above and below a moving average, based on the price range of a security over a specific period. They are used to identify potential breakouts and trend reversals, as well as support and resistance levels.

Average Directional Movement Index Rating (ADXR)

The Average Directional Movement Index Rating (ADXR) is a technical indicator that smooths the Average Directional Index (ADX) to provide a more stable assessment of the strength of a trend. It is used to identify potential trend reversals and confirm ongoing trends.

Coppock Curve

The Coppock Curve is a momentum indicator that measures the rate of change in a security’s price to identify potential trend reversals and buying opportunities, particularly in long-term investment scenarios. It is commonly used in conjunction with other technical analysis tools for confirmation.

Displaced Moving Average (DMA)

The Displaced Moving Average (DMA) is a technical indicator that shifts a moving average forward or backward by a specified number of periods. It is used to better align the moving average with price action, reduce lag, and improve trend identification.

Guppy Multiple Moving Average (GMMA)

The Guppy Multiple Moving Average (GMMA) is a technical indicator that plots multiple moving averages to analyze the behavior of short-term and long-term traders. It is used to identify trends, potential trend reversals, and areas of consolidation.

Mass Index

The Mass Index is a technical indicator that measures the volatility of a security’s price to identify potential trend reversals. It is based on the relationship between the high and low prices over a specific period and is commonly used in conjunction with other technical analysis tools.

Price Oscillator

The Price Oscillator is a technical indicator that calculates the difference between two moving averages, expressed as a percentage or an absolute value. It is used to identify potential trend reversals, overbought and oversold conditions, and divergence signals.