In the example above, the “Black” line is the ADX Signal line, while the “Green” line represents ascending directional movement and the “Red” line, the descending DM. The values for each of the three lines of the ADX are always absolute. The ADX does not necessarily indicate that a reversal is imminent. Other oscillators are better suited for this purpose, but it does speak to momentum and directional strength. Read price first, and then read ADX in the context of what price is doing. When any indicator is used, it should add something that price alone cannot easily tell us. …

Unfortunately, the shares didn’t perform well for the first ten years, but it became a popular share to watch among short-sellers during this time. Juventus listed on the Milan Stock Exchange , under the ticker JUVE, in 2001. It is one of three Italian teams listed on the stock market. The share price has delighted investors over the past five years, growing by more than 570%. Many say this happened because the club signed Cristiano Ronaldo, and it has been dubbed ‘the Ronaldo effect’. Celtic is a Scottish football club and one of the least-performing football clubs on stock market. …

Your memory will save this wisdom when your muscles cooperate with your mind. Test your strategy on as much as 20 years of historical data, go to any point of time, control the speed, save your project to return to it later, and much more possibilities await you. QuantHouse – QuantHouse is not going to be too useful for most traders, unless you have a large amount of AI’s running within the markets. I would advise staying away as you won’t need this level of detailed data, nor would it be cost effective or efficient. Subscription to get the fullest …

It’s important to understand the business model of a firm for long-term investing. Reading SEC filings such as 10-K and 10-Q will gradually help to become an expert on business and industry. Profitable businesses attract competition, and increased competition leads to lower profits. Therefore, a deterioration in profitability can only be prevented through a sustainable competitive advantage. Still, it is essential to perform due diligence before investing by using the best stock news websites and following the financial news. One is the company’s revenue growth, particularly over the past two or three years. If the company’s major competitors are averaging …

Most types of financial instruments provide efficient flow and transfer of capital all throughout the world’s investors. These assets can be in the form of cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of one’s ownership in some entity. Common underlying assets or factors include stocks, bonds, currency exchange rates, commodity prices, market indices, and interest rates. For example, if a company were to pay cash for a bond, another party is obligated to deliver a financial instrument for the transaction to be fully completed. One company is obligated to provide …

The true proportion of derivatives contracts used for hedging purposes is unknown, but it appears to be relatively small. Also, derivatives contracts account for only 3–6% of the median firms’ total currency and interest rate exposure. Nonetheless, we know that many firms’ derivatives activities have at least some speculative component for a variety of reasons. For example, an equity swap allows an investor to receive steady payments, e.g. based on SONIA rate, while avoiding paying capital gains tax and keeping the stock. Each party has its profit or margin built into the price, and the hedge helps to protect those …