Understanding Implied Volatility (IV) and the Greeks (Delta, Gamma, Theta, Vega)
When moving beyond the fundamental concepts of calls and puts—covered comprehensively in The Ultimate Beginner’s Guide to Options…
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A technical indicator is an analytical tool used by traders to gain insight into the performance of a security, such as a currency pair or stock index. The indicator could be composed of one or several variables, and can be based on simple patterns existing in the past price performances or on complex algorithmic principles. Technical indicators are used by investors to identify trends, define profitable entry and exit points as well as possible risk exposure points. It is important to understand how each indicator works and identify any bias in their depiction of the securities during analysis before deciding which technical strategies to pursue.