Technical
Linear Regression
- When considering stocks, the two variables we are: time (IV) and price (DV)
- Using linear regression, a trader can identify key price points— entry price, stop-loss price, and exit prices.
Terms
Price action
- def - the actual historical price of the stock that you see when you look at a chart. This is to be contrasted with non-actual prices, such as moving averages
Resistance & Support
Resistance
- When a stock is on the uptrend, a portion of the stock's owners will have sell limit orders where they want to take their profit. This causes the stock to hit a seemingly arbitrary line, called the
resistance - all stocks seem to experience resistance at a price ending in ".00m" and also at ".50," although not as strongly. It's as if traders are reluctant to take it to the next dollar level.
Support
- When a stock is on the downtrend, there are more and more buyers who want to buy in at the better and better discounts. This puts upward pressure on the stock
UE Resources
Children