Category Archives: Advanced

A collection for more advanced investors looking for information on technical analysis, working with data, investing techniques, and more

AngelRivera’s September Trading Strategy

Contest: September Monthly Million Contest Final Rank: 1 Final Portfolio Value: $1,308,146.64 (+30.8%) Trading Strategy For This Contest My strategy is finding pharmaceutical/biotech companies. I find corporations that are testing products. I look for ones who have an upcoming announcement on phase 3 testing or FDA approvals. I keep those stocks on my watchlist. Once Read More…

Volume Weighted Average

In finance, Volume-Weighted Average Price (VWAP) is a ratio of the profit traded to complete volume traded over a distinct time horizon – normally one day. It’s a portion of the average price a stock traded at over the trading horizon.

Open Interest

Definition Open Interest is the total number of options or futures contracts that are “open”, meaning currently owned by an investor and not yet expired. Details Think first in terms of options contracts: by owning an option, it signifies that there is interest in actually trading that stock, although at a different price. Since this Read More…

Double Bottom

Double Bottoms are reversal patterns and often seem to be one of the most common (together with double top patterns) patterns for currency trading. Double Bottoms patterns are identified by two consecutive low prices of the same depth with a moderate pull back up in between (neckline peak).

Head and Shoulders

The head-and-shoulders pattern is one of the most popular chart patterns in technical analysis. The pattern looks like a head (the middle peak) with two shoulders (two equal heiight peaks).

Cup With Handle

A cup-and-handle chart pattern resembles a cup of tea. These are bullish continuation patterns where the growth has paused. momentarily, it trades down and then continues its upward pattern. This pattern must always be at least 5 weeks long and can last up to a year.

Covariance Analysis

Covariance is a statistical measure of the extent that 2 variables move in tandem relative to their respective mean (or average) values. In the investment world, it is important to be able to measure how different financial variables interact together.

Correlation Analysis

The use of correlation analysis extends to numerous important fields. For example, in finance, correlation analysis can be used to measure the degree of linear relationships between interest rates and stock returns, money supply and inflation, stock and bond returns, and exchange rates.