Heikin Ashi Candlestick Charts

Heikin-Ashi means “average bar” in Japanese. Heikin-Ashi Candlesticks use the open-close data from the previous period and the open-high-low-close data from the current period to create an average candlestick. As a result of the averaging, Heikin-Ashi candlesticks won’t show the exact open, high, low and close for that period like a standard candlestick would. Continue reading

Candlestick Patterns: Hanging Man & Hammer

A hammer is a kind of bullish reversal candlestick pattern, consists of only one candle, and appears after a downtrend. The candle is similar to a hammer, simply because it has a long lower wick and a short body at the top of the candlestick with almost no upper wick. Continue reading

Importance of Volume

Volume is among the most basic and effective concepts to understand when trading stocks. Volume is actually the number of shares (or contracts) that trade over a certain period of time (e.g.a day for daily timeframe). The higher the volume, more active the shares. Volume plays a significant role in the buying and selling of the stocks. Most traders combine the volume with the price of the stock to take the trading decision.

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How dividend affects stock and option prices

If your trading strategy is based on income generation, you could possibly tend to prefer companies that issue dividends. And why wouldn’t you like some extra payout every once in a while? But, before you decide to opt for choosing your investments, it’s vital that you understand how dividends fit into your portfolio and why they make a difference to the market.

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Events that shook the stock markets in 2016

The year 2016, without a doubt, has been a roller-coaster ride of many surprises. The unexpected Rexit, Brexit result in June, Donald Trump’s unexpected triumph in the US Presidential election, a surgical strike on Pakistan and the most notable of them all, obviously, was the government’s decision towards the end of the year to demonetize Rs 500 and Rs 1 ,000 currency notes.

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