Table of contents What is VWAP Why is VWAP Popular? VWAP Video Lesson My VWAP Breakout Trading Strategy My VWAP Pullback Trading Strategy FAQ’s Updated: November 1, 2023. Written by Ross Cameron What is the Volume Weighted Average Price (VWAP) Indicator? The volume-weighted average price (VWAP) is a popular technical indicator that measures the average […]
Day Trading Terminology
Technical Analysis Definitive Guide [2022]
Table of contents Why Traders Need Technical Analysis Technical Analysis: Bottom Up vs. Top Down Approach Key Technical Analysis Concepts Support and Resistance Bottom Line Technical analysis is a loaded term. The phrase means different things to different people. If you ask a green pea newbie, they’ll tell you that with the right knowledge of […]
Market Capitalization Definition: Day Trading Terminology
Market Capitalization, better known as Market Cap, is a measurement used to classify a company’s size, which can be categorized between small, medium or large cap with sub-categories from there. It is a simple calculation that takes the stock price and multiplies it by the number of outstanding shares. Understanding what the market cap is […]
Moving Average Convergence Divergence (MACD) Explained
The moving average convergence divergence, better known as MACD, is a technical indicator that is used for measuring the strength of a trend by using two moving average prices. It is calculated by subtracting the 26-day exponential moving average (EMA), known as the slow length, from the the 12-day EMA, known as the fast […]
After Hours Trading: Day Trading Terminology
What is After Hours Trading Most traders trade during normal trading hours, which is 9:30am EST to 4:00pm EST for US markets, however, trading does occur outside these hours in the after hours trading session. After hours trading is trading that occurs after the market closes at 4:00pm EST and can run to as late as […]
Binary Option Definition: Day Trading Terminology
Over recent years traders have started hearing about a new trading product, but there are many questions and concerns about what they are and how they work. Binary Options are a type of derivative that are considered an “all-or-nothing” asset and is comparable to placing a bet on a sports game. When you purchase a Binary […]
Proprietary Trading Definition: Day Trading Terminology
Proprietary trading occurs when a company risks their own capital to trade stocks, currencies, commodities or other financial instruments for financial gain. This is different than hedge funds or investment firms that trade on behalf of their clients and make money through commission, profit sharing and fees. Most proprietary trading occurs at big banks and […]
Penny Stock Definition: Day Trading Terminology
According to the SEC, penny stocks are considered to be any stock trading below $5 per share whether they are listed on an exchange or trading through the Over The Counter Bulletin Board (OTCBB) or pink sheet markets. Penny stocks, often referred to as microcap or even nanocap stocks, are usually smaller or newer companies with […]
Floor Trader Pivots Definition: Day Trading Terminology
Floor trader pivots are one of the more popular pivot levels for active traders and are commonly used by floor traders in the trading pits. The pivot points are calculated by using the previous days high, low and closing prices for establishing key intraday resistance and support levels. There are tons of pivot calculators that can […]
Gap Definition: Day Trading Terminology
Gaps form on charts when there is a big price movement with no trading in between. This usually happens over night when news comes in and pushes the prices of a stock higher or lower than the previous days close. This is caused by a major difference in supply or demand usually caused by a […]