The influx of millions of new and inexperienced traders using trading apps on their smartphones and commission-free trading platforms in recent years has contributed to the increased volatility and unpredictability seen in major financial market indices. These traders, who have very little or no understanding of the market or the companies whose stocks they are trading, are more likely to make emotional trading decisions, which has lead to large price movements and increased volatility of indices. In short, extreme volatility and chaos exhibited by major indices in recent months is the new norm now.
DJI: Dow Jones Industrial Index EMA: Exponential Moving Average
DJT: Dow Jones Transportation Index PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index PUL: Primary Uptrend Line
RUT: Russell 2000 Index ASL: Active Support Line
OEX: S&P 100 Index ARL: Active Resistance Line
NDX: NASDAQ 100 Index DTL: Dynamic Trend Line
TUL: Tentative Uptrend Line TDL: Tentative Downtrend Line
Disclaimer: The views expressed are provided for informational purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.