VIX – CBOE Volatility Index
1) What Is the Cboe Volatility Index (VIX)? VIX is a real time index of S&P 500 index (SPX) that represents the market participants sentiment basically fear. VIX is derived by using the forward near time price expectations or changes from SPX index options with near term expiration dates. It generates a 30-day forward projection […]
Bollinger Bands
1) DEFINITION: BOLLINGER BANDS: It is a technical analysis indicator or a tool that gives a higher probability of a stock or any other asset is overbought or oversold. 2) How it’s viewed in chart? Along with SMA a set of two trend lines are plotted above and below the […]
VWAP
1) What is the Volume Weighted Average Price (VWAP)? The volume weighted average price (VWAP) is a tradingbenchmark used by traders that gives the average price a stock has traded at throughout the day, based on both volume and price. Retail and professional traders use the VWAP as part of their trading rules for determining intraday trends. VWAP is […]
MACD – Moving Average Convergence and Divergence
1) Define Moving average convergence divergence (MACD). Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a stock’s price. MACD helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening. 2) Calculation: Formula for MACD is MACD = 12 period EMA – […]