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Technical Analysis -Part 1

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  RSI- Relative Strength Index ·                   It is one of the most effective and most used technical tool of stock market developed by J. Welles Wilder Jr . and introduced in his seminal 1978 book, "New Concepts in Technical Trading Systems." ·        It is classified as momentum indicator because it measures the velocity and magnitude of price movements . It helps to analyze the strength and weakness of stock or market based on the closing prices of recent trading periods. ·                  It has a measurable scale from 0 to 100 . There are some default level marked on this scale like 30 and 70 as low and high level which can be changed by the user according to their use and perception. ·         By default it has 14 days time frame which again can be changed by the user as per their convenience. ·  ...

Fundamental Analysis -Part 1

  Debt to equity ratio Debt to equity ratio indicates the proportion of debt and equity in the financial structure of the company. Technically, it s used to measure the financial leverage of the company which is obtained by dividing companies total liabilities by the total equity of it. It gives clarity regarding the fund arranged by the company that weather it is by debt or by selling off share of its ownership.           Having a debt is not a bad thing for any company but most important thing is that Weather Company is able to generate profit more than pay of interest. Lower debt-to-equity ratio are considered favorable because it indicates less risk in financial structure whereas high debt to equity ratio is unfavorable because it show risk. High debt to equity ratio is considered risky because it means that company relies more on external lenders for capital and at the same time it have to pay high interest rates for it which red...