Glossary – I
Implied Volatility: See Volatility (Implied).
Indicator: A value which is derived from a stock’s price or volume that a trader can use to potentially anticipate future price movements. Indicators are divided into two groups: trend following and momentum. Trend following indicators help tell you what prices are doing now or in the recent past, making them useful when stocks are trending. Moving averages are great examples of a trend following indicators. On the other hand, momentum indicators are designed to anticipate future price action and many come in the form of oscillators. The RSI would be an example of a momentum indicator.
Industrial Metals Commodities Index ($GYX): The Industrial Metals Commodities Index, which includes copper, aluminum, and zinc.
Industry: A grouping of companies within the same line of business.
Initial Public Offering (IPO): The first offering of common stock to the public.
Intermarket Analysis: An additional aspect of market analysis that takes into consideration the price action of related market sectors. These four sectors are stocks, bonds, commodities, and currencies. International markets are also included. This approach is based on the premise that all markets are interrelated and impact on one another.
Inverted Hammer: A one day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open, therefore looking like an inverted lollipop.
iShares: Developed by Barclays Global Investors, iShares are index funds that trade like stocks. These shares can be bought or sold like normal stocks and are designed to track: