Monthly Archives: July 2018

In technical analysis, a moving average (MA) is an indicator used to monitor price action while filtering out “noise” from random price fluctuations. Since it is based on past prices, moving average is termed a lagging or trend-following indicator. There are two main ways to calculates moving average: simple and exponential. In a simple moving average […]

In technical analysis, triangle patterns are formed by trend lines that meet at an apex, or corner, as price ranges converge. The top of the triangle is a trend line connecting highs in price, while the bottom of the triangle connects the lows. The apex is formed by where the upper and lower trend lines […]

A poison pill, also known as a shareholder rights plan, is a strategy a company might use to prevent a hostile takeover. Poison pills are designed to make a company’s stock less attractive to a would-be buyer, often by making it more expensive. One common example of a poison pill using stock is a “flip-in” in which current […]

Support, or support level, refers to a price below which a particular stock is not likely to fall according to historical data. Buyers tend to enter a stock near the support level since the stock is not likely to get cheaper. Support can be thought of as a floor below which the stock will not […]