Analyze and Compare the Financial Statements of Companies
A company’s choice of inventory valuation method can have a significant impact on the presentation of its financial statements. Financial items such as cost of sales, gross profit, net income, inventories, current assets, and total assets as well as the…
Chi-square Test of a Single Population Variance and F-test of the Ratio of Two Population Variances
Testing the Variances of a Normally Distributed Population using the Chi-square Test A chi-square test is used to establish whether a hypothesized value of variance is equal to, less than, or greater than the true population variance. Unlike most distributions…
Parametric vs. Non-Parametric Tests
Parametric Tests Parametric tests are statistical tests in which we make assumptions regarding population distribution. Such tests involve the estimation of the key parameters of a distribution. For example, we may wish to estimate the mean or compare population proportions.
Technical Analysis (TA)
Technical analysis is the practice of using price and volume data to value stocks. It upholds the idea that supply and demand, that jointly constitute market forces, ultimately determine the stock price. Technical analysis is a concept widely used to…
Technical Analysis Charts
Technical analysis charts are graphical displays that show asset price and trade volume data. Charts provide technicians with information about past price fluctuations. We can use such data to predict future market performance. There are different types of charts used…
Trend, Support, Resistance Lines and Change in Polarity
Trend Trend is perhaps one of the most important concepts in technical analysis. Under normal circumstances, market participants tend to make similar decisions and a trend may persist for some time. The following are a few additional concepts that every…
Common Chart Patterns
A chart pattern is a distinct trading formation appearing repeatedly and which can be used to predict future price movements of a given stock. The formations appear on price charts and create unique, recognizable shapes. Analysts study these formations when…
Technical Analysis Indicators
Technical analysis indicators are measures used to predict changes in the price of a security price based on price, market sentiment, or flow of funds. In essence, they try to establish how potential changes in market forces (supply and demand)…
Use of Cycles for Technical Analysis
Cycles are trends or patterns that may be exhibited by the securities market. The trends or patterns directly affect prices, leading to seasonal or periodical fluctuations that may recur over and over again. Cycles may also lead to some securities…
