| a
| b | c
| d | e
| f | g h
| i | k
l | m n
| o | p
| r | s
| t | u
v w |
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| Accelerating
Trend |
| There is a very old
saying that TREND IS YOUR FRIEND and it has been seen in the
long run that if an investor does not go against the trend of the
stock market, he does not loose. A trend can be an uptrend,
downtrend or a sideways trend and once an investor is familiar
with a main trend, he can make money. A sideways trend i.e.,
sideways market is the worst market for a trader. |
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Accumulation |
|
When an investor or a group of investors starts accumulating a share
resulting in the scarcity of the said share in market. The demand on the share
exceeds its supply, which results in its price going upwards. Start of big
rallies is always preceded by accumulation. This is the initial phase of an
upward movement when shrewd and informed
investors start accumulating the stock i.e., collect the stock when as per them
the bad news has been discounted. (Here one can see the formation of a higher
bottom higher top formation).
 |
In the diagram A, the shrewd investor accumulate the stock and take it up. Diagram B is opposite of accumulation and is distribution where shrewd investor distribute and give |
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|
Apex |
| Normally when the stock price
moves in a side ways zone and tries to converge
in the form of a triangle, the converging lines
where they meet is called an apex. If a stock
has traveled till the apex, normally it signals
a failure of that formation. Normally a stock
comes out of formation at 66% of the formation. |
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|
| Arithmetical Mean |
| Arithmetical mean is also
known as simple moving average. It is calculated by
summing all
the quantities and then dividing the total by the
number. Example an average age of 25 children in a
class is adding 25 children age and dividing by 25. |
| Arithmetical Scale |
| It is a method of charting
in which distances between two scales on a chart
represents the same unit in rupees. For example a
distance from 20 to 30 in an arithmetic scale
represents a gap of Re 10 and a distance from 30 to 40
represents a gap of Re 10. |
| Ascending Trend |
| The price of the stock is
going up and is making higher bottom higher top
formation, general public is happy, the trend is
rising. A good up trend generally is one in which the
angle of slope up is 45% angle. Normally the rising
trendline which is not much rising will trouble. If
given a choice, one should be buying a stock which has
more rising trendline than a flat trend line |
| Ascending
Triangle |
| It is a typical pattern where the upper trendline
is flat, while the lower trend line is rising,
it is a signal that buyers are more aggressive
than sellers and buyers are pushing the sellers
back. It is treated as a bullish pattern and
find if it breaks on the upside one should buy
the stock. Normally from bottom formations in a
bearish market, the first things one notices is
ascending triangles |
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ADR American Depository Receipt
|
|
Foreign companies which want to get their stock listed
on the US markets issue ADRs and this ADR represents a
certain portion of the underlying stock.
Example:- If one ADR represents two shares of
the underline company being traded, then the price of
ADR will be two times the market price of that stock
which is being traded in that country.
A lot of Indian companies have gone in for ADRs
route.
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Arbitrage
|
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One can invest money in stocks in which the future is
there. You
buy the stock and sell the future and at the end of
the settlement shift the future position to the next
month with the result that you will keep earning the
arbitrage interest on the stock.
There are clever traders who go on squaring up
and selling the future again and again to earn more
arbitrage. more
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American Option
|
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It is an option which can be exercised at any time
from the date you purchased and till the date of its
expiry. All
Indian stocks options are American in nature and they
can be exercised by the buyer anytime.
Index options are not American in style.
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ASK Price
|
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This is the price at which the seller offers to sell
his option or the stock or the future.
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Assignment
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If an option writer gets a notice from the option buyer to
deliver the security or square up the trade at the
closing price, then in the Indian context, it is now
the right of the buyer of the option who can give the
notice of assignment to the seller of the option.
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