TI Tools Guide
We provide you with free tutorials, a free online platform as an application and a pay-for-use downloadable spreadsheet that offers slightly more functionality than the platform and allows you to work offline.
Both the platform and the spreadsheet are fully automated, including automatic retrieval of data for some stocks. Both tools implement models, show you in detail every step for strategies covered in the course notes, basic charting, testing of the code using different implementation for extra assurance and strategy back-testing again for strategies covered in the course notes. You can even save your calculation and return to them at another time.
Volatility
Understanding volatility is essential, not least for assessing the riskiness of a security. In layman terms, it measures the dispersion of returns. However, it can be tricky to measure. Here, we present an overview of volatility and various ways of measuring it.
Returns
Returns can be thought of as returns on an investment: positive returns mean that a profit has been made and negative returns mean that a loss has been incurred. Simple, right? Well, not exactly! There are different definitions and measurements of returns in the market. We have summarised the most common definitions and approaches in the market.
Volume
Volume measures the number of stocks or contracts traded during a particular time frame, e.g., daily or monthly. Therefore, it shows the demand for an asset and, hence, the strength of a trend. Some traders choose to ignore it, but professional traders always look at it not least because it validates the price.
Candlestick Charts
Candlestick analysis is a technique used by Japanese rice traders centuries ago. It has been around since the 1700s. The main strength of this technique is that it provides quick insights into the psychology of traders. Western traders have been able to add volume analysis into the picture to make it more powerful.