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What are moving averages?

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Under  technical analysis , indicators have a crucial role to play. Indicators are pattern-based signals made through price, volume, and/or open interest of a security or  contract used by traders who follow technical analysis. Indicators are used to forecast price movements. Some examples of common technical indicators are- moving averages, moving average convergence divergence (MACD), relative strength index (RSI), Bollinger Bands and Exponential moving average (EMA). The moving average (MA) is an indicator used to find out the direction of a current price trend regardless of the short term price fluctuations. The moving average formula as a technical analysis indicator, finds out price data by updating a regular average price. When the moving average is showcased through a price chart, a single/ flat liner removes any differences caused due to changes in price. They do not forecast the direction of price, instead define the current direction in accordance with the past pric...

Will CFA get me a job?

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CFA certification   is considered the highest distinctions in the investment management profession. After earning the CFA charter, one possess the required amount of knowledge and skill set required to excel in the investment industry. To obtain a CFA Charter, a student has to clear three levels of CFA exam. Passing the CFA examination is a difficult task but it is a fruitful process. Becoming a CFA Charter holder and enrolling for the CFA program paves a way towards your success in the investment domain. Portfolio manager and research analyst are the major professions opted by people who own the CFA designation. After owning a CFA charter, one can choose a lot of professional designations such as corporate financial analyst, accountant, auditor, consultant, risk analyst/manager, relationship manager/ account manager, credit analyst etc. After clearing CFA exam, one gets a renowned designation in the field of finance.  Companies and professionals in the investment industry hel...

Will cryptocurrency be the future?

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The journey of altcoin and bitcoin, forms of  cryptocurrency exchange , started in 2009. It was used for peer-to-peer transactions without the involvement of a third party such as a central bank. People who made transactions through digital currency in early times earned millions owing to value fluctuations. Thus, the price reached about $19.783 (around €16.17) per bitcoin in late 2017. This effect was called the  “ price bubble ”  by critics. This created a trend of buying, selling and trading bitcoin. New cryptocurriences were also introduced- Litherium in 2011, Ripple in 2012, Ethereum in 2015. Over the time span, digital transactions have created their way to success. A huge shift from traditional monetary system of exchange to digital currency has been seen. The significant rise in cryptocurrencies results from the failures in existing financial system. The new system of digital payments is not only easy to execute, but transparent too. The cost of financial transact...

How technical analysis works?

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  Stock market technical analysis   implies the study of historical market data, such as price and volume. Through the help of market psychology, economics and quantitative analysis, individuals use technical analysis to forecast future market behavior based on past performances. Chart patterns and technical analysis indicators are two common forms of it. Traders make their decisions based on technical analysis to know what is likely to happen in the stock market.  Traders may use simple trend lines, volume indicators, chart patterns, technical indicators to make their decisions.  Candlestick chart is the most commonly used chart pattern. Each candlestick chart denotes different price action in different time periods. For example, every candlestick on an hourly chart shows the price action for one hour, while every candlestick on a 4-hour chart showcases the price action during each 4-hour time period.  Support and resistant levels are used to find out the price...

Is CFA exam tough?

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Clearing the   CFA program  needs discipline, focus and extensive studying hours. One must have a proper plan and the right kind of guidance to pass all three levels. The exam consist of different topics such as economics, finance, ethics and professional standards, corporate finance, equity, derivatives, portfolio management etc. The preparatory books provided by CFA institute are a bit complex for the students to understand. That is why students find it difficult to study for CFA exam and look for alternative preparatory materials. Getting the right assistance is essential to clear Chartered Financial Analyst Course easily.  The test material for CFA exam is extremely difficult. The questions in the examination are designed to trick the candidates. Therefore, it is important for the students to give mock tests so as to stay updated with the similar type of questions offered and feel confident to clear the exam in the first go. It won’t be wrong to say that CFA exams are...

What are Ethereum and Ripple in Cryptocurrency?

  Cryptocurrency  is a digital method of payment that can be used to buy and sell goods and services. Cryptocurrencies function through a technology known as “Blockchain”. It is a technology spread across many computers that analyze and record transactions. Ripple and Ethereum are cryptocurrencies that work through blockchain technology. It helps people make easy transactions without physically being present at a particular place. It removes all geographical boundaries and makes the transaction process accessible.  Ethereum was launched in 2015 and founded by Russian-Canadian developer, Vitalik Buterin. It is the first blockchain ever to enable the creation and entering of smart contract agreements by people. A smart contract is a kind of agreement which works on some pre-conceived conditions and proceeds with the transaction after those conditions are fulfilled. The Ripple cryptocurrency was first produced in 2012, three years prior to Ethereum. Ripple Labs, located in S...

What are technical analysis indicators?

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Indicators are an important element of   technical analysis.   Indicators are pattern-based signals created through the price, volume, and/or open interest of a security or contract used by traders under technical analysis. Traders who follow technical analysis use indicators to forecast the movements in price. Some examples of common technical indicators are- the Relative Strength Index, Money Flow Index, Stochastic RSI, MACD and Bollinger Bands. Technical indicators are used by analysts and chartists to study price data and understand when to enter or exit the trade in stock market. It is an instrument produced to study investments and know best trading opportunities, like the volume and price movement. It can be useful for any historical trading data such as futures, stocks, commodities, fixed income, currencies and different securities. Active traders commonly use indicators because they analyze short-term price movements through it.  Indicators in stock market are di...