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Five Terms That You Must Be Familiar with, if You are Trader

Stock Market

In this post, you will get to know about the five frequently used terms in stock trading. Each trader must be aware of the following five terms. As they are important to you if you want to generate accurate intraday trading tips.

Let us know about them.

Indicator

Technical Indicators are basically statistics that are used to measure present as well as future circumstances of economic trends. In technical language, the indicators are statistical metrics that are used to measure the growth or contraction of the economy. It is used extensively in technical analysis in order to predict changes in stock trends. You can also gauge the price patterns in any traded asset with the help of technical indicator. They are also used to provide insight into the future profitability potential of public companies in fundamental analysis.

Trendline

What is trendline? A line is drawn over pivot highs or under pivot lows to show the prevailing direction of price is known as a trendline. In any time frame, the picture of support and resistance is said to be trendline. They are used to show direction and speed of price, and also describe patterns during periods of price contraction.

Technical Decline

A fall in the price of a security. Which is caused by factors other than a change in the fundamental value of the security, is known as a technical decline. Here the security is said to experience a technical decline. When the security is trending upwards overall and the price is going downward based on technical factors. By and large, the suggestion is that a technical decline will prove to be only a momentarily dip in demand. It is followed by an appreciation back to the fair market value suggested by business fundamentals.

Stock Analysis

Basically, the evaluation of a particular trading instrument or an investment sector or the market is known as stock analysis. The technical and fundamental analysts attempt to determine the future activity of an instrument, sector, or market.

Opening Range

During the first few minutes of daily trading activity. The highest and lowest prices of a security are said to be an opening range. For any technical analyst, opening ranges are important, as they base their trading decisions, not on the fundamental aspects. But on the movements of a stock’s price as well as the volume in which a stock is traded.

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