Blog Posts

A blow-off top refers to a chart pattern that indicates a rapid and significant increase in a security or asset’s price and trading volume, typically followed by a similarly sharp decline. This pattern is typically associated with the climax of a bullish trend, where prices surge to unsustainable levels before succumbing to a sharp reversal. […]

Book skew is a concept derived from the market microstructure that quantitatively measures the imbalance between the buy and sell sides of the order book in financial markets. Specifically, it refers to the discrepancy between the resting bid depth (vb​) and the resting ask depth (va​) at the top of the order book. This discrepancy […]

The trading of options contracts during the premarket session is usually not possible. Some index options can be traded outside standard market hours. Futures options can be traded outside the market hours for securities (assuming the futures exchange is open). For example, options tied to major indexes (like SPX – e.g., ES futures) have extended […]

Low float stocks are shares of a company that are available for trading in the open market and are characterized by a relatively small number of shares outstanding that aren’t held by insiders, governments, or restricted investors who can’t trade them freely. The “float” refers to the number of shares actually available for trading by […]

Short interest, often expressed as a percentage known as the “short float,” refers to the proportion of a company’s outstanding shares that are sold short but have not yet been covered or closed out. As a financial indicator, it offers insights into market sentiment and potential price movements.   Relevance of Short Float Market Sentiment […]

The Bloomberg Terminal is widely recognized for its data, analysis tools, and communication platform. However, its high cost prompts many to seek alternatives that better fit their budget or specific needs. Below we cover some of the best alternatives to the Bloomberg Terminal, each with its unique features and strengths:   1. Refinitiv Eikon Features […]

The importance of using a Bloomberg Terminal in trading can be significant for professionals in finance and investments, due to its variety of tools, data, and analytics. For smaller traders, long-term investors, and other market participants, its costs may not justify the benefits. We’ll explore in more detail below.   Key Takeaways – How Important […]

The cost of a Bloomberg Terminal is typically about $2,000 per month per user. This subscription fee is for the Bloomberg Professional service, which provides real-time financial data, news feeds, and messaging tools, among other features important for finance professionals. The exact cost can vary depending on: the type of subscription the number of licenses […]

Avoiding the classification as a pattern day trader (PDT) is important for traders with less than $25,000 in their brokerage account, due to the Financial Industry Regulatory Authority (FINRA) regulations. These regulations restrict PDTs to a minimum account balance of $25,000, which imposes a limitation on the number of day trades that can be made […]

Selecting the best chart timeframe is important for developing a trading strategy that aligns with your goals, trading style, and the market dynamics. Below, we explore various timeframes and how they cater to different trading styles.   Key Takeaways – Best Chart Timeframe for Trading Match Timeframe with Trading Style The optimal chart timeframe is […]