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Vocab, Voodoo, and Dime-a-Dozen Theories

Dashboard > Chapter 17: Advanced Options – Strategy (O.M.A.O.) > Vocab, Voodoo, and Dime-a-Dozen Theories

Vocab, Voodoo, and Dime-a-Dozen Theories

Markets Vocab, Voodoo, and Dime-A-Dozen Theories

For The Seven, you're going to have to be able to read The Wall Street Journal. Or at least know what the stats mean that it quotes all the time. A biggie is the Advance/Decline Ratio. It simply asks, "How many stocks in the S&P went up today? How many stocks in the S&P went down? How "broad" is the strength or weakness of the market? That's what the A/D Ratio answers.

Trading volume is another biggie. Big moves on small volumes (like maybe the...

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