A moving average in technical analysis is used as a tool that smooths out price data by constantly creating updated average prices. In general, common moving average (MA) lengths are 8, 9, 10, 13, 20, 21, 34, 50, 55, 100 and 200. Traders prefer to use two short-term and one long-term moving averages in their charts. You can even use one short-term and one long-term … [Read more...] about Moving average crossovers – Is golden and death cross an effective indicator to trade
Finance
What is open Interest (OI) in futures
The total number of outstanding or unliquidated contracts at the end of the day is known as open Interest.This means, by knowing open interest (OI) numbers, you will know how many contracts are currently open or held by buyers or owed by sellers in any derivative market, such as futures or options..Open interest applied primarily to future markets.A contract must … [Read more...] about What is open Interest (OI) in futures
What is ABCD Patterns and how to trade it
In technical analysis, we have different chart patterns to understand crowd psychology. One of such chart pattern is known as ABCD.ABCD pattern forms when prices move higher or lower, followed by a flag pattern and then continue in the direction of the prevailing trend. The ABCD pattern is based on the principle that stock prices move in waves. You will find this pattern … [Read more...] about What is ABCD Patterns and how to trade it
Retail Traders vs. Institutional Traders: What’s the difference
In this article let us look at the different types of traders who are trading in the market. We have teo different types traders: retail and institutional.Retail traders are independent individual traders like you and I. These people basically trade part time or full-time from their own money, not on behalf of a firm or institution.On the other hand, we have biggies … [Read more...] about Retail Traders vs. Institutional Traders: What’s the difference
What are after market orders (AMO)
After market orders (AMO) are placed in the trading platforms after the market is closed. Traders use this facility to place orders for the next trading day.Once the after market order (AMO) is placed, it will be executed on the next trading day as per the instructions given in the order.Market is live from 9:15 am to 3:30 pm. This facility is helpful for those traders … [Read more...] about What are after market orders (AMO)