What is a Dragonfly Doji Candlestick Pattern? A dragonfly doji candlestick pattern forms when a trading candlestick has the same high, open, and closing prices forming a capital letter “T” The Dragonfly Doji is typically interpreted as a bullish reversal chart pattern when it occurs at the bottom of a […]
Trading Basics
84 posts
What Is the Hedge Ratio? The hedge ratio is the hedged position value divided by the total position value. A ratio of 1 or 100% means that the position is fully hedged and a ratio of 0 means it is not hedged at all. The ratio is the comparative value […]
What Is a Business Day? Is Saturday a Business Day? A business day typically refers to any day in which normal business operations are conducted. In Western countries, this is generally considered to be Monday through Friday from 9 a.m. to 5 p.m. local time and excludes weekends and public […]
Stop on Quote vs. Limit Orders vs. Stop Orders A Stop on Quote Order enables an investor to execute a trade at a specified price, or better after the quoted stock price reaches the desired stop price. It is used by investors who want to limit their downside to ensure […]
What Is a Zero-Sum Game? In a zero-sum game, one person’s gain causes another person to lose an equal amount. For everyone involved, the net change is zero. The stock market, in the long run, is not a zero-sum game. There is real and actual wealth creation from economic growth […]
What Do Three White Soldiers Mean? The Three White Soldiers is a bullish candlestick formation on a stock trading chart signaling a bullish reversal at the end of a downtrend. The three white soldiers formation is used by analysts and traders to predict the reversal of the current downtrend in […]