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Monday, May 4, 2009

Trading Volume

The quantity of shares, bonds or contracts traded during a designated time period for a security or an entire exchange.

Triple witching hour is the last hour of the stock market trading session (3:00-4:00 P.M., New York Time) on the third Friday of every March, June, September, and December. Those days are the expiration of three kinds of securities:

Stock index futures.
Stock market index options.
Stock options.
The simultaneous expirations generally increases the trading volume of options, futures and the underlying stocks, and occasionally increases volatility of prices of related securities.

Trading Range

Range refers to the area between high and low prices a currency pair tends to trade during a given period of time.

With ranging markets, traders tend to use indicators that are better at identifying overbought & oversold levels as well as reversals signals. Indicators such as MACD, RSI, and other moving average derivatives are common - as well as Japanese Candlesticks for reversal and continuation signals.