What are Bollinger Bands? The volatility of a financial asset, such as a stock, commodity, or currency, can be determined using the technical analysis tools known as Bollinger Bands. It was created in the 1980s by John Bollinger and had three lines. A simple moving average (SMA) of the price over a predetermined amount of time is represented by the middle line (usually 20 days). The upper band is made up of the same SMA plus a particular number of standard deviations (often 2) of the price during the same time period. The lower band is the same SMA minus the same amount of standard deviation of the cost during the same time period. Typically, the upper and lower bands are designed to be two standard deviations from the moving average, although this can be changed depending on the asset’s volatility.
Here, you read about the Bollinger bands. Later in this article, you will read about the Bollinger Bands trading strategy, its formula, and its working.

The technical indicator known as RSI, or relative strength index, is used in financial trading to gauge the strength and momentum of a security’s price. J. Welles Wilder created RSI in the late 1970s. But what is RSI meaning? How does it work? Let’s see.

You may have heard about moving averages. However, have you encountered the term “moving average convergence divergence (MACD)”. In this article, we shall discuss what the MACD indicator is. The MACD indicator is very useful to trace the momentum, direction of a stock’s price in a trend. The MACD crossing is a crucial signal. Histograms that compare the MACD line and the signal line are used to study the features of convergence and divergence.

In technical trading, there are hundreds of chart patterns that have different purposes and strategies. As a trader, you can look out for different charts and choose accordingly.

In the case of shooting star candlestick, the first thing that comes to mind is “what is the shooting star candlestick” and “what does the name mean”. So to learn about the candlestick pattern, you must know that a candle is a single price bar which is used to track the movement of stock prices over the stock market in a specific period of time . A candlestick is considered a shooting star when the pattern appears and lets you know in advance. Besides from the distance between the intra-day high and the opening price, which must be double the size of the shooting star body. To learn more about the shooting star candlestick pattern , read the article below.

There are several approaches to take and several strategies to implement to make money in the stock market. However, whatever your strategy may be, you’re essentially doing one of three things: You’re basing your strategy on the stocks or assets fundamentals, technicals, or a combination of both. When you make investment decisions based on fundamentals, you analyze the company’s financials, peers, and industry structure. On the other hand, when you base your investment decisions on the stock’s technicals, you assess the stock’s price movement on the chart over a specific period. In this blog, we will focus on a strategy that falls into the second category, called range trading.

A strong defense is the finest attack. Investors need a strong attack and defense plan, like in football or military warfare. In other words, investors need to employ many strategies if they want to be successful. Individuals can achieve this in various ways if they’re dedicated investors. Individuals may diversify their portfolios by buying securities from different industries and marketplaces, or they can buy companies with diverse growth and value levels. They can invest in various stocks, cash, and other assets. If investors don’t understand the global economy and how the markets operate, implementing the proper approach will be extremely difficult.

In the internet age, the financial markets have become more accessible to the common folk, and hence, we see more people wanting to trade and invest in assets like stocks. Many approaches exist to trade and make money in the stock market. Investors and traders may refer to company financials, research reports, stock charts and a manifold of analytical tools and indicators to help strategize their trades. In this article, let’s understand a popular technical pattern called the sushi roll reversal pattern.

An effective technical analysis tool for identifying trends and probable entry and exit points for buying or selling a specific company is the moving average. The average stock price for a predetermined amount of time, such as 10 days, 50 days, or 200 days, is used to compute the moving average. The line that results, when displayed on a graph, depicts the trend of the stock price during that time. Moving averages are helpful for traders because they may show them trends and possible entry and exit points. For instance, a company is deemed to be in an uptrend if it is trading above its 50-day SMA or 200-day SMA, and traders may try to purchase the stock on any declines. On the other hand, a stock is said to be in a downtrend if it is trading below its 50-day SMA or 200-day SMA. Traders may then try to sell the stock on any gains.

Over the past years,different systems and strategies over the past years have developed to take trading to new heights. The stock market with the investment strategy and goals. There is one system which you must know that is the radar signal trading system. It is a method to give a buy or sell signal, which is generated via analysis.

When you enter stock trading, you come across various subsets and styles of trading; equity trading, F&O trading, intraday trading, delivery trading, etc. Regardless of segment or style, you will see your trades appear in at least one of the two, the order book or trade book. To know what an order book and trade book are you can read the following information.

Contrary to chasing the hottest trending stocks in the market, value investing focuses on investing in stocks that are underappreciated by the market at large. If we had to get more technical, value investing is the strategy of investing in stocks trading at a price below their intrinsic value. However, to keep it simple, think of value investing as the basic idea of investing in deeply discounted stocks. That said, value investing is much more nuanced than just investing in stocks with a low PE ratio.

A trader must get the best price while placing an order on the stock market. A seller wants to sell a stock for as much money as possible, and a buyer always wants to purchase a stock for as little money as feasible. So, there are many ways and approaches for handling stock market trades that can help you to maximize profit and reduce loss. A limit order is the most effective instrument for building successful investing strategies. Limit orders often protect your portfolio from losses caused by irrational price changes. The article will continue to discuss what a limit order is in the stock market.