by Henry Liverman | May 5, 2021 | Market Definitions
A combination of stochastic and the Relative Strength Index. Essentially, a Stochastic RSI is a Stochastic indicator applied to the RSI indicator. It was developed to take advantage of both momentum indicators. By using RSI values with a Stochastic formula, traders...
by Henry Liverman | May 5, 2021 | Market Definitions
A short position is created when a trader sells an asset or security with the intention of repurchasing it later. A trader may take a short position on a security if they believe that the price of that security is likely to decrease substantially in the near future. ...
by Henry Liverman | May 5, 2021 | Market Definitions
A prolonged period of above-average returns where drawdowns are relatively shallow and recoveries from pullbacks are relatively rapid. This is in contrast to a Secular Bear Market, or a prolonged period of below-average total returns where drawdowns are severe and...
by Henry Liverman | May 5, 2021 | Market Definitions
An independent agency of the US Federal Government created following the stock market crash of the 1930s. The primary function of the Securities and Exchange Commission (the SEC) is to enforce laws against market manipulation. The SEC states it has a three-part...
by Henry Liverman | May 5, 2021 | Market Definitions
The Relative Strength Index is a momentum indicator used to determine of a stock or asset is overbought or oversold. The RSI is usually represented as a oscillating line graph from 0 – 100. The standard interpretation is that a value over 70 indicates that a...
by Henry Liverman | May 4, 2021 | Market Definitions
Also referred to as the Sharpe Ratio, a risk-adjustment return is an analysis ratio that provides insight into how risk compares to return in an investment. It measures to reward-to-variability ratio of a potential investment by dividing the risk-adjusted return with...
by Henry Liverman | May 4, 2021 | Market Definitions
A foreign currency that is held in large reserves by a government or other monetary authority. A reserve currency is used by that government to participate in the global economy and to back said government’s own currency. As a result of the Bretton Woods...
by Henry Liverman | May 4, 2021 | Market Definitions
Software that allows potential investors access to the Bloomberg data service. Advantages of a Bloomberg terminal include live access to global financial data in real time as well as news feeds and messages. They’re also used to facilitate stock and option...
by Henry Liverman | May 3, 2021 | Market Definitions
A non-traditional monetary policy in which a central bank purchases longer-term securities directly from the market. This has the effect of increasing the money supply as well as working to encourage lending and investment. When the bank buys these securities, it...
by Henry Liverman | May 3, 2021 | Market Definitions
An options contract that gives the owner the ability to sell an underlying security at a pre-determined price within a pre-set time frame (also referred to as the “strike price”). However, it is not a requirement that the options contract holder buy at...
