This is an "Average" correlation derived from the Basket IV formula. The "Basket IV" can be derived from the actual market prices of the Index option. In the term on the right, you get the correlation of every existing pair of stock component. If you replace these corr(i,j) terms by only one term CORR assuming they are the same, then you can extract this in front of the … [Read more...]
Aroon Oscillator : Basic Concept
OVERVIEW The Aroon indicator anticipates when a security is changing from an impulsive move to a trading range and vice versa. The Aroon indicator was developed by Tushar Chande, who also created the Chande Momentum Oscillator and the Qstick. The aroon indicator displays two plots: (1) Aroon Up and (2) Aroon Down. The standard period for the Aroon Up and Aroon Down is … [Read more...]
Accumulation/Distribution -Technical Indicator
Overview Accumulation/Distribution Technical Indicator is determined by the changes in price and volume. The volume acts as a weighting coefficient at the change of price — the higher the coefficient (the volume) is, the greater the contribution of the price change (for this period of time) will be in the value of the indicator. In fact, this indicator is a variant of the … [Read more...]
Stock Market Forecasts
For any stock market investor, speculation of the stock price is the most crucial thing. Their buying and selling decisions are primarily based on the prediction. These predictions or stock market forecasts are done by experts after considering so many factors that directly or indirectly influence the stock prices. As an investor you can get stock market forecasts from … [Read more...]
Broker
‘Broker’ is one of the most common terms used in stock market. But people are often confused about the role or duties and responsibilities of a ‘broker’. In short, it is a person or agent who carries out the task of handling and managing public's orders to buy and sell shares, stocks, commodities or any other property. There are Full service brokers, too, who offer a complete … [Read more...]