Covered Call

Trading Library Covered Call tl;dr A covered call is a strategy where you own an asset (like stocks) and sell a call option on that asset to generate additional income from the option premium. It works best when you expect little price movement or slight increases in the stock price. If the stock price stays … Read more

Coppock Curve

Trading Library Coppock Curve tl;dr The Coppock Curve is a long-term momentum indicator used to identify potential buy signals in the market. It’s most effective for spotting reversals in a bear market. When the Coppock Curve crosses from negative to positive, it suggests a potential trend reversal to the upside, making it an excellent tool … Read more

Chikou Span

Trading Library Chikou Span tl;dr The Chikou Span is the lagging line in the Ichimoku Kinko Hyo indicator, plotted 26 periods behind the price. It helps confirm trends and identify potential reversals. If the Chikou Span is above the price, the trend is bullish; if it’s below, the trend is bearish. Traders use the Chikou … Read more

Chart Patterns

Trading Library Chart Patterns tl;dr Chart patterns are visual formations on a price chart that help predict future price movements. Traders use them to spot trend continuations or reversals. Common patterns include head and shoulders, double tops/bottoms, and triangles. Recognizing a pattern, confirming the breakout, and managing risk with stop-loss and take-profit orders are essential … Read more

Channel Breakout Strategy

Trading Library Channel Breakout Strategy tl;dr The Channel Breakout Strategy involves trading when the price breaks out of a defined price range (channel). Traders look for breakouts above resistance for long positions or below support for short positions. It’s important to confirm the breakout with increased volume and use stop-loss orders to manage the risk … Read more

Chande Momentum Oscillator (CMO)

Trading Library Chande Momentum Oscillator (CMO) tl;dr The Chande Momentum Oscillator (CMO) helps traders measure the momentum of an asset and spot overbought or oversold conditions. It is calculated by comparing the sum of gains and losses over a period. A CMO above +50 indicates an uptrend and potential overbought conditions, while below -50 suggests … Read more

Chaikin Volatility (CHV)

Trading Library Chaikin Volatility (CHV) tl;dr Chaikin Volatility (CHV) is a technical indicator that measures how much an asset’s price fluctuates. High CHV indicates increased volatility, which often precedes price breakouts, while low CHV signals stable, low-risk periods. Traders can use CHV to spot potential breakouts, confirm trend strength, and manage risk by adjusting their … Read more

Chaikin Oscillator

Trading Library Chaikin Oscillator tl;dr The Chaikin Oscillator helps traders measure market momentum by comparing accumulation and distribution of an asset. It is calculated by subtracting the 10-day EMA of the Accumulation/Distribution Line from the 3-day EMA. When the oscillator is above zero, it suggests buying pressure, and when it’s below zero, it indicates selling … Read more

Cash Flow Statement

Trading Library Cash Flow Statement tl;dr The Cash Flow Statement tracks the movement of cash in and out of a business. It has three sections: operating activities (day-to-day business operations), investing activities (buying and selling assets), and financing activities (loans, debt, dividends). It’s essential for assessing a company’s ability to meet its financial obligations, manage … Read more

Capital Expenditure (CapEx)

Trading Library Capital Expenditure (CapEx) tl;dr Capital Expenditure (CapEx) refers to the money spent by a company on acquiring or upgrading physical assets like property, machinery, and equipment. These expenditures are long-term investments that help the company grow and improve its operations. CapEx is capitalized and depreciated over time, unlike operating expenses that are fully … Read more