Blog by PriyaSahu

A stock’s short interest ratio is an important measure that reflects the number of shares that have been sold short but not yet covered or closed out. It provides insights into investor sentiment and market trends. A high short interest ratio suggests that many investors believe the stock ...

A stock’s volatility refers to the extent of its price fluctuations over time. Volatility plays a crucial role in assessing a stock's risk level, as higher volatility indicates larger price swings, which can result in higher potential rewards but also greater risks. Understanding volatilit...

A trading journal is a tool used by traders to record their trades, strategies, and the outcomes of their investments. It helps you review your past trades and identify patterns that lead to profits or losses. By maintaining a trading journal, you can analyze your trading decisions and ref...

The triple top and triple bottom patterns are important technical analysis tools used by traders to identify potential trend reversals in the market. These patterns are similar to double tops and bottoms but are considered to be stronger signals because they require three attempts for...

The tweezer top and bottom patterns are common candlestick chart patterns that indicate potential reversals in price trends. These patterns can help traders spot possible turning points in the market, giving them the opportunity to make well-timed trades. The tweezer top is a bearish ...

Active share is a measure used to evaluate how much a mutual fund's portfolio differs from its benchmark index. It indicates the level of active management in a fund, showing how much the fund's holdings are deviating from the index that it aims to outperform. A higher active share ge...

Adaptive moving averages (AMAs) are essential tools in algorithmic trading, where they allow trading systems to respond to changing market conditions. Unlike traditional moving averages, which rely on fixed time periods, AMAs adjust their calculations based on market volatility and tr...

The Average Daily Range (ADR) is a key technical indicator used in trading to measure the daily price movement of a stock, currency, or other asset. It helps traders understand the typical volatility of an asset within a given trading day. By knowing the ADR, traders can make better decisi...

The Average Directional Index (ADX) is a key indicator in technical analysis used to measure the strength of a market trend. Unlike other indicators that show whether a trend is up or down, ADX focuses purely on trend strength. This makes it valuable for traders to assess whether the marke...

The ADX (Average Directional Index) is a technical analysis indicator used to determine the strength of a trend in the stock market, whether it's an uptrend or a downtrend. It helps traders understand how strong a trend is, so they can make informed decisions about entering or exiting trad...

Algorithmic trading refers to the use of computer programs and algorithms to automatically execute stock trades based on predefined criteria. In modern stock markets, this method has gained significant importance as it helps traders execute high-frequency trades with accuracy and speed. It...

Alpha and beta are two important measures used to assess mutual funds. Alpha shows the fund manager's ability to generate returns above the market, while beta measures the fund's risk compared to the market. Understanding both can help you choose funds that align with your investment goals...

An earnings surprise happens when a company's actual earnings are different from what analysts had expected. If earnings are better than expected, the stock price usually goes up. If earnings are worse than expected, the stock price often falls. These surprises show how well a company is r...

An expense cap in mutual funds means a fixed upper limit on how much fees the fund house can charge from investors. It protects your returns from being reduced by high charges. This cap is set by SEBI to make sure all investors are treated fairly, and mutual fund charges remain reasonable.

The offer document in mutual funds is a legal paper that gives full details about the mutual fund scheme. It tells you what the fund is about, what it aims to do, where your money will be invested, what risks are involved, and all the charges. Reading the offer document helps you make a sm...

The debt ratio shows how much debt a company has compared to its total assets. In stock investing, this ratio helps you understand if the company is borrowing too much money. A high debt ratio means more risk, while a low debt ratio shows the company is financially stable. This is importan...

Anchored VWAP (Volume Weighted Average Price) is a trading tool that shows the average price of a stock based on both price and volume, starting from a specific point in time. It helps traders find important support and resistance levels. It is more accurate than normal VWAP because you ca...

Andrews’ Pitchfork is a popular tool in trading used to identify possible support and resistance levels. It helps traders find the direction of the trend and possible price reversal areas. By using three key points on a chart, this tool draws a channel with a center line and two parallel l...

Annualized return shows how much profit or loss an investment makes each year, on average. It helps you compare the performance of different stocks or funds over different time periods. This makes it easier to choose the best investment options based on yearly growth.

The asset turnover ratio is a number that shows how well a company uses its assets to make money. It tells you how much revenue (sales) a company earns for every rupee it has in assets. A higher ratio means the company is using its assets well to generate sales. This is useful when you wan...