A symmetrical triangle is a chart pattern used in technical analysis that represents a period of consolidation before the price breaks out in either direction. It is formed when the price makes lower highs and higher lows, creating two converging trendlines that form the shape of a triangle. This pattern reflects a balance between buyers
Algorithmic trading, also known as algo trading or automated trading, refers to the use of computer programs and algorithms to execute trades in financial markets. These algorithms follow a predefined set of rules and strategies based on criteria such as price, volume, timing, and other market conditions. The primary goal of algo trading is to
Derivatives are financial instruments whose value is derived from the value of an underlying asset, index, or benchmark. The underlying asset can be stocks, bonds, commodities, currencies, interest rates, or market indexes. Types of Derivatives Uses of Derivatives Advantages of Derivatives Risks of Derivatives Real-Life Examples of Derivative Use Derivatives are powerful tools in finance,
What is an OFS? OFS (Offer for Sale) is a mechanism that allows promoters or major shareholders of a publicly listed company to sell their shares directly to institutional and retail investors through the stock exchange platform. It’s a quick and transparent way to reduce their stake while adhering to regulatory requirements like maintaining the
Gaps in the stock market refer to price levels where no trading occurs, resulting in a “gap” between two consecutive candlesticks. Gaps are typically created due to significant news, earnings releases, or other events, and they indicate strong momentum in a particular direction. Understanding gaps is essential for traders as they often provide valuable trading
In this article we will talk about the what are QIPs , why its more feasible for the listed companies to raise funds through QIPs. What is QIP (Qualified Institutional Placement)? A Qualified Institutional Placement (QIP) is a fundraising tool used by publicly listed companies to raise capital by issuing equity shares, fully and partly
The Rising Wedge Pattern is a bearish chart pattern commonly observed in technical analysis. It occurs when the price of an asset is consolidating between two upward-sloping trendlines that are converging. This means that while the price is rising, the rate of increase is slowing down, indicating weakening momentum. The rising wedge pattern typically signals
Recently, I read news on Economic times that publishes, HSBC India Manufacturing Purchasing Managers’ Index declined to 56.5 in November, compared with 57.5 the previous month. So I thought lets dig deep into this macroeconomic event today. HSBC India Manufacturing Purchasing Managers’ Index (PMI) The HSBC India Manufacturing Purchasing Managers’ Index (PMI) is an economic
Earnings Per Share (EPS) is a financial metric that shows how much of a company’s profit is allocated to each outstanding share of common stock. It is an important indicator of a company’s profitability and helps investors assess its performance. Formula for EPS: EPS= Net Earnings (Net Income) / Number of Outstanding Shares where,Net Earnings: Profit after taxes, interest, and other
The PE ratio (Price to Earnings Ratio) is a financial metric that measures the relationship between a company’s stock price and its earnings per share (EPS). It helps investors determine how much they are willing to pay for $1 of a company’s earnings. Formula for PE Ratio: PE Ratio = Market Price Per Share /
