Technical Analysis

Options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. There are two main types of options: call options, which give the right to buy, and put options, which give the right to sell. Traders…

Gross Domestic Product (GDP) is a key economic indicator. It measures the total value of all goods and services produced within a country over a specific period, usually a quarter or a year. It reflects the overall health and size of a country’s economy. Additionally, it is widely used by traders, investors, and policymakers to…

A bear market is a term used to describe a financial market where prices are falling over a period of time. It usually refers to a drop of 20% or more from recent highs in the price of stocks, currencies, commodities, or other financial assets. A bear market reflects a negative sentiment among investors and…

Leverage in trading refers to the ability to control a larger position in the market with a relatively smaller capital. It is typically expressed as a ratio, such as 1:10 or 1:100, meaning that for every $1 of your own money, you can trade with $10 or $100, respectively. Leverage is commonly offered by brokers,…

A flat position refers to a situation where a trader has no active trades in the market—they are neither long (buying) nor short (selling) any assets. Being flat means the trader is not exposed to market risk at that moment. Their account is fully in cash or settled equity. This is a common state for…

A resistance level is a price point on a chart where an asset’s upward movement tends to slow down or reverse due to an increase in selling pressure. Traders often view resistance as a barrier that the price struggles to break through. This level is usually identified by past price action. Past price action is…