Basics: Bulls Of Wall Street

Question 1

What is HOD?

Answer 1

High of day - highest price of particular stock has reached in a given day.

Question 2

What is EOD/EOD run?

Answer 2

End Of Day - Is when a stock is trading sideways for most of the afternoon, however in the last hour it runs up.

Question 3

What is a Gapper?

Answer 3

A gapper is a stock that opens at a different price than the close of the previous day.

E.g. closes at $5 but opens at $5.40 next day

Question 4

What is a breakdown?

What is a breakout?

Answer 4

Breakout - When ascending stock breaks over the resistance

Breakdown - When descending stocks breaks below the support level

Question 5

What is a pullback?

Answer 5

Is when a stock runs up and retraces at some point.

Question 6

What are the times of After-Hours in stock trading?

Answer 6

These hours constitute from 4PM to 8PM.

Question 7

What are the trading hours?

Answer 7

Trading hours are from 09:30 to 16:00

Question 8

What are trading times for PRE-MARKET?

Answer 8

Trading occurs between 5AM-09:30AM

Question 9

What does LEVEL 2 show you?

Answer 9

• It shows buyers and sellers for given stocks
• It shows (bid) of the left side: highest price individuals are looking to buy stock
• It shows (ask) on the right side: the lowest price that individuals are willing to sell stock

Question 10

What is the volume pattern to look at when trading stock? And, Why?

Answer 10

• On long positions - high volume is an ideal and low volume on red days

It shows momentum is on the side of the bulls

Question 11

What do moving averages tell you?

Answer 11

• It helps identify trends
• It helps provide areas of support and resistance

Question 12

What is the difference between an EMA and SMA?

Answer 12

EMA = Tells us the moving average on the specified number of data points, but gives weight to price action

SMA = Tells us the averages of x number of data in given timeframe

Question 13

What do the 20 SMA, 50 SMA, and 200 SMA tell us about the overall trend?

Answer 13

20 SMA = Short-term trend

50 SMA = Intermediate trend

200 SMA = Long term trend

Question 14

How would the moving averages use in trading?

Answer 14

• A trader would use the long-term timeframe (Daily) to get trade ideas for the watchlist
• Using 20,50 and 200 SMAs

Question 15

What does rising/falling volume or open interest tell you?

Answer 15

The rising volume and open interest endorse a move

The falling volume and open interest make you question the move

Question 16

What does open interest mean?

Answer 16

• The number of open and short positions open

Question 17

What is the difference between Volume and Open Interest?

Answer 17

• Volume is spoken on intraday movement
• Open interest talks about open positions overnight