Friday, February 3rd 2012 - 06:09:24 pm

TradeStocksAmerica.com Glossary of Terms

Glossary of Terms
(Some abbreviations are for communication on the Trading Room)

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V bottom – a shape in the stock chart representing an important bottom in a stock (or market) price. What usually precedes this bottom is gradual selling that accelerates faster and faster until it could lead to a short panic sell. Usually some event with that company or market in general, would lead to the rise upward in stock price.

VIX – Volatility Index is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. The VIX is a widely used gauge that measures the market’s level of fear. When the VIX spikes to very high values usually marks the bottom of the market for at least a short period of time.

Volume: The number of shares or contracts traded in a security or an entire market during a given period of time (daily volume is most common). It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by 100 shares based on that transaction. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made strong price move either up or down, the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move.

 

 


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