http://www.iexplain.org Simple Explanations for Traders and Techies Sun, 24 Feb 2008 19:09:37 +0000 http://backend.userland.com/rss092 en The most popular formula for the MACD is the difference between a security's 26-day and 12-day Exponential Moving Averages aka EMA. Using shorter moving averages will produce a quicker, more responsive indicator, while using longer moving averages will produce a slower indicator thereby becoming less sensitive to noise. The primary benefit of MACD ... http://www.iexplain.org/macd-definition-example/ Term Stop Loss Usage Trading Term Context Answers questions: What does stop loss mean? Define Stop Loss. What is stop loss used for in trading? Definition of Stop Loss Stop loss is an action, manual or automatic, to buy or sell a security that has passed a limit set beforehand. This is typically done automatically. Many if ... http://www.iexplain.org/stop-loss/ Term FOREX a.k.a. Foreign Exchange Market, FX Usage Financial Institution, Financial Term, Money Markets, Currency Exchange, Trading Term Context Answers questions: What does FOREXT mean? Define FOREX. Explain what FOREX stand for. What is FOREX? Definition of FOREX FOREX is a commonly used term to describe the foreign exchange market. The foreign exhange market does not exist ... http://www.iexplain.org/forex-defined/ Term Broker Usage Financial Institutions, Financial Term Context Answers questions: What does broker mean? Define Broker. Explain what a broker does. What is a broker? What does a broker do? Definition of Broker Broker is someone who acts as intermediary between a buyer and a seller of a commodity or security. The evereyday meaning of the word broker ... http://www.iexplain.org/broker-defined/ Calculating Exponential Moving Average (EMA) is of course done automatically by most trading and technical analysis software out there today. This is a walkthrough on how to calculate it manually which also adds to the understanding on how it works. In this example we shall calculate EMA for a the price of ... http://www.iexplain.org/ema-how-to-calculate/ Term Exponential Moving Average a.k.a EMA Usage Technical Indicator, Technical Analysis, Trading Software, Trading Tools Context Answers questions: What is exponential moving average? Define EMA, define exponential moving average, Explain the technical indicator exponential moving average. Definition of Exponential Moving Average (EMA) Exponential Moving Average shows the average value of the underlying data, most often the price of a security, for a ... http://www.iexplain.org/exponential-moving-average-defined/ Term Moving Average; Simple Moving Average a.k.a MA Usage Technical Indicator, Technical Analysis, Trading Software, Trading Tools Context Answers questions: What is a moving average? Define moving average, Explain the technical indicator moving average. Definition of Moving Average Moving Average shows the average value of the underlying data, most often the price of a security, for a given time period. Moving average ... http://www.iexplain.org/moving-average-defined/ Term Buy-And-Hold Usage Trading Strategies, Technichal Analysis, Trading term, Trading Software, Trading Tools Context Answers questions: What does buy-and-hold mean? Define buy-and-hold as a trading strategy. Explain the strategy buy-and-hold. Definition of Buy-And-Hold Buy-And-Hold is a common label of the simplest trading strategy available; buying a security and holding on to it without trying to sell for quick profits and the ... http://www.iexplain.org/buy-and-hold-defined/ Term System Trading Usage Technichal Analysis, Trading term, Trading Software, Trading Tools Context Answers questions: What does system trading mean? Define system trading. Explain system trading. Definition of System Trading System Trading refers to the activity of buying or selling securities based on indications from a set of rules, often referred to as Indicators or Formulas, put together into a Trading System. In ... http://www.iexplain.org/system-trading-defined/ Term Back Testing Usage Technichal Analysis, Trading Software, Trading Tools Context Answers questions: What does back testing mean? Define back testing. When should I do back testing? Explain back testing. Definition of Back Testing Back testing refers to the activity of testing an Indicator or Trading System on historical prise and/or volume data of a security. Back testing is done in order to see how accurate ... http://www.iexplain.org/back-testing-defined/