Moving Average Convergence Divergence (MACD) Developed by Gerald Appel, the Moving Average Convergence/Divergence oscillator (MACD) turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, the MACD offers the best of both worlds: trend following and momentum. The MACD [...]
Exponential Moving Average (EMA) EMA is a type of moving average that places a greater weight and significance on the most recent data points. It is also referred to as the exponentially weighted moving average. Exponentially weighted moving averages react more significantly to recent price changes than a simple moving average, which applies [...]
Divergence Divergence is a critical concept in technical analysis of stocks. The goal of the technical analyst when using divergence indicators is to spot trend reversals. Early identification of a trend reversal can be highly profitable. Divergence is where the price of a stock and a set of relevant indicators, [...]
Relative Strength Index Developed by J. Welles Wilder, Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. Traditionally asset is considered overbought when RSI is above 70 and oversold when below 30. Overbought refers to a [...]
Pivot points Pivot points are support and resistance levels that technical analysts use to pinpoint potential reversals in price over time. While the levels were originally used by floor traders to set key levels to watch during the day, technical analysts have expanded upon the concepts to develop at least [...]
Volume is the number of shares of stock, bonds, options, or futures con tracts traded over a designated period (e.g., daily, weekly, monthly). Volume reflects the intensity (strength) of a stock, commodity or index. Volume also provides an indication of the quality of a price trend and the liquidity of a [...]
MIS – Stands for Margin Intraday Square Off. MIS product code is used for trading Intraday Equity, Intraday F&O, and Intraday Commodity Trading. When you choose MIS as a product type and buying a any particular stock then you not need pay full amount of that stock. you should only need to pay small [...]
Averaging Down It involves buying more shares after there is a fall in stock prices following the initial purchase. The strategy leads to lowering the average cost of all the shares held thus lowering the breakeven point. Here‘s an example of how averaging down works. Consider you have purchased 200 [...]
Price correction in the stock markets refers to a phenomenon where inflated stock prices fall sharply after reaching record highs. This inflation in the stock prices is generally caused by investors who anticipate gains and purchase shares in bulk, while the fall is caused due to investors dumping their shares and cashing [...]
Terminology used :- Turnover = Number of Shares * Price STT = Securities Transaction Tax SEBI = Securities and Exchange Board of India AMC = Annual maintenance charges DP = Depository Participant Various types of charges:- Securities Transaction Tax (STT) :- Tax by the government when transacting on the exchanges. [...]