MARKETS
What Is Alpha? Measuring Returns Beyond the Market Benchmark
Alpha measures the excess return an investment or portfolio has generated compared to what would be expected based on its risk level…
Markets
MARKETS
What Is Beta? Measuring a Stock’s Volatility Relative to the Market
Beta is a statistical measure of how much a stock's price tends to move relative to a broader market benchmark, such as…
MARKETS
What Is Open Interest? Gauging Activity in the Derivatives Market
Open interest refers to the total number of outstanding futures or options contracts that have not yet been settled, closed, or expired,…
MARKETS
What Is Trading Volume? Measuring the Strength Behind a Price Move
Trading volume refers to the total number of shares (or contracts, for derivatives) of a security that changed hands during a specified…
MARKETS
What Is a Breakout? When Price Escapes a Defined Range
A breakout occurs when a security's price moves decisively beyond an established support level, resistance level, or trend line, typically accompanied by…
MARKETS
What Is a Trend Line? Visualizing the Direction of Price Movement
A trend line is a straight line drawn on a price chart connecting a series of price points — typically successive lows…
MARKETS
What Is a Resistance Level? Where Selling Pressure Tends to Emerge
A resistance level is a price point on a chart where a security has historically tended to face selling pressure strong enough…
MARKETS
What Is a Support Level? Where Buying Pressure Tends to Emerge
A support level is a price point on a chart where a security has historically tended to find buying interest strong enough…
MARKETS
What Is a Moving Average? Smoothing Out Price Noise
A moving average is a technical analysis tool that calculates the average price of a security over a specified number of recent…
MARKETS
What Is a Candlestick Chart? Reading Price Action Visually
A candlestick chart is a widely used method of visualizing a security's price movement over a specific time period, with each "candle"…