May 30, 2019 | Day Trading, Technical Indicators
Time Decay As an option approaches its expiration date, there is less time to realize a profit – or additional profit – before the option expires. As a result, options lose value as they get closer to their expiration dates. This is known as time decay. Time decay can...
May 13, 2019 | Day Trading, Technical Indicators, Trading Strategy
Dividends add value to a stock by offering investors a cash or stock payout simply for holding shares. Dividends are especially popular among long-term value investors since they provide a relatively stable income source, but they can also increase the value of stocks...
Apr 9, 2019 | Stock Market, Technical Indicators, Trading Tips
Broad economic factors routinely have a jolting influence on the stock market, forcing traders to react both quickly and over time to adjust to new market conditions. Understanding the types of economic factors that affect the market and how they influence it can go a...
Mar 5, 2019 | Day Trading, Technical Analysis, Technical Indicators
Introduction to Stochastics The stochastic oscillator was developed in the late 1950s by the trader and technical analyst George Lane. The stochastic oscillator is an indicator similar to the relative strength index (RSI) or moving average convergence divergence...
Sep 19, 2018 | Technical Analysis, Technical Indicators
The average true range is a technical indicator that measures volatility of a market based on the range and price movement of the market. It is purely derivative of price, unlike something like implied volatility. The indicator was developed by technical analyst...
Jul 25, 2018 | Technical Analysis, Technical Indicators
The parabolic stop-and-reverse (PSAR) indicator was first introduced by technical analyst Willes Wilder in his 1978 book New Concepts in Technical Trading Systems and has been widely used by traders ever since. The PSAR is used on trending stocks to indicate whether...