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Technicals

VWAP

Let's discuss an important concept in finance known as Volume Weighted Average Price, or VWAP for short. This metric is calculated by taking the total volume of trades for the day and multiplying it by the corresponding price for each trade. This is then divided by the total volume for the day. Essentially, it is a measure of the average price at which a particular security is traded throughout the day.

VWAP is commonly used as a benchmark in pension plans to evaluate the performance of a particular trade. It is believed that if the price of a buy trade is lower than the VWAP, it is a favorable trade. Conversely, if the price is higher than the VWAP, it may not be as advantageous. This concept is based on the idea that the VWAP represents the fair market value of a security at any given time.

By incorporating the total volume of trades into the calculation, VWAP takes into account both the price and the quantity of

Momentum divergence

Momentum divergence is a phenomenon in the world of finance that occurs when the price and volume of a security diverge, meaning they move in opposite directions. This can h...

This is often seen as a temporary level of support for a security. In the world of finance, we often come across the term "resistance level". This refers to a price level a...

/bottom A fundamental aspect of technical analysis in finance is the identification of chart patterns, which are unique formations resulting from the fluctuation of prices. ...

As a finance expert, it is crucial to understand the various graphical representations of financial data. These visual tools provide valuable insights into price trends and ...

In finance, we often refer to the number of ticks or price changes that occur in a specific time period. This is known as tick volume, and it is an important concept to unde...

When the market experiences a significant decline below a key support level or breaks out of a consolidation pattern, it is often due to an increase in selling pressure that...

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Taxes

All terminology and concepts related to various tax types, tax laws, and taxation principles.

Market Entities

All terms related to various types of organizations or individuals, like investors, banks, insurers,

Financial Terms

A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used

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The "Property" category in finance encompasses all aspects related to real estate and tangible asset

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All terms and concepts related to technical analysis in finance, which involves using historical pri

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All terminologies and concepts related to financial derivatives, including options and futures contr

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Trading Terms encompass terminology and phrases commonly used in financial markets, including terms

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All terms and concepts related to the precious metal gold, including its price, trading, investment,

Currency

All terms related to the system of money in general use in a particular country, representing a medi

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