When a broker or investor buying stocks has failed to settle the trade in a timely manner and, as a result, the broker can forcibly sell the securities on the investor's behalf. Taobiz explains Sell-Out A perfect example of this is when the broker sells a person's stock to meet a margin call.
A tool in technical analysis that is used for determining potential areas of support and resistance. This tool, consisting of three trendlines, is created by drawing the first trendline from the most recent low to the most recent high when the asset is in an uptrend, and from the most recent high to the most recent low when the asset is in a downtrend. The other two trendlines are drawn with smaller angles in an attempt to predict areas that will act as possible barriers in the event of a retracement. Speed resistance lines are similar in interpretation to the Fibonacci Fan indicator. Many traders will watch for a move below the two-thirds level to signal a continued retracement toward the one-third level. It is important to remember that other technical indicators should be used when the price of the asset is near the trendline to confirm the strength of the predicted support/resistance.
The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the value of the security. Taobiz explains Sell-Off A sell-off may occur for many reasons. For example, if a company issues a disappointing earnings report, it can spark a sell-off of that company's stock. Sell-offs also can occur more broadly. For example, when oil prices surge, this often sparks a sell-off in the broad market (say, the S&P 500) due to increased fear about the energy costs companies will face.
A ratio comparing the volume of trades upon the American Stock Exchange and the NYSE. Many of the shares transacted on the AMEX are small cap and speculative. Therefore, when the volume on the AMEX is relatively higher than that of the NYSE, it is considered to be a sign of increasing speculation in the markets.
A phrase used by many brokerages on the street to represent the opening of a short position in option transactions. Taobiz explains Sell To Open An investor can sell to open either (or a combination of) puts or calls and thus will be holding the option(s) short. The distinguishing factor of a sell to open is that the option position must not be held long in the account during the transaction.
A price-bar formation that gives real-time price signals of support and resistance. When a series of price bars reverses direction, it is considered a structural pivot (not a calculated pivot).The price bar has an open, high, low and close. The pivot is composed of a minimum of three bars and occurs in every time frame. The pivot lows and highs are used to draw trendlines to show support, resistance and trend direction. Think of the price pivot as an axis, which is a shaft that supports something that turns. Every pivot is a price turn and shows support (a pivot low) or resistance (a pivot high) for that time frame.
A phrase used by many brokerages on the street to represent the closing of a long position in option transactions. Taobiz explains Sell To Close An investor can sell to close either (or a combination of) puts or calls and thus will be relinquishing ownership of the option(s). The distinguishing factor of a sell to close is that the option position must have been held long in the account during the transaction.
An indicator used in technical analysis that ranges between zero and one and is created by applying the Stochastic Oscillator formula to a set of Relative Strength Index (RSI) values rather than standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold - a measure that becomes specifically useful when the RSI value is confined between its signal levels of 20 and 80. The StochRSI is deemed to be oversold when the value drops below 0.20, meaning the RSI value is trading at the lower end of its predefined range, and that the short-term direction of underlying security may be nearing a correction. Conversely, a reading above 0.80 suggests the RSI may be reaching extreme levels and could be used to signal a pullback in the underlying security.