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Support and resistance are two important concepts in technical analysis that can help traders make profitable trading decisions. Support is a price level at which a security or an asset tends to stop falling, while resistance is a price level at which a security or an asset tends to stop rising. Here are some ways to use support and resistance to make profits: Identify key levels: Look for key levels of support and resistance on the chart. These levels can be identified by looking for areas where the price has bounced off multiple times in the past. These levels can act as strong barriers that the price may struggle to break through, making them good areas to enter trades. Use stop-loss orders: Once you have identified your support and resistance levels, set your stop-loss orders accordingly. A stop-loss order is an order placed with your broker to sell a security when it reaches a certain price. By setting a stop-loss order just below the support level or just above the resistance lev

What Is the   Current   Ratio? The  current  ratio is a liquidity ratio that measures a company's ability to pay short-term or one-year obligations. It explains to investors and analysts how a company can optimize its  current  assets on its balance sheet in order to pay off its  current  debt and other payables. When a company's  current  ratio is very high in comparison to its peer group, it indicates that management may not be utilizing its assets efficiently. The  current  ratio is so-called because, unlike other liquidity ratios, it includes all  current  assets and liabilities. The  current  ratio is also known as the working capital ratio. Current  Ratio Formula and Calculation Analysts compute the ratio by comparing a company's  current  assets to its  current  liabilities. On a balance sheet,  current  assets include cash, accounts receivable, inventory, and other  current  assets (OCA) that are expected to be liquidated or converted into cash in less than one yea

What exactly is a supertrend indicator?     It is a trend-following indicator. It is drawn in stock price charts for investors and shows strongly observable trends in red when prices have fallen and green when prices have increased.   This indicator is simply dependent on two factors: period and multiplier. Traders typically employ ten periods - the average true range number of days (ATR - yet another indicator that provides market volatility value by decompressing the price range of a security for a given time) - and three multipliers (A multiplier is a value by which ATR would be multiplied). ATR is important in this indicator since it is utilised to produce a value from which the degree of price volatility can be tracked. If all of this seems too complicated, don't worry; systems and screeners can now handle the arithmetic for you in seconds; simply select the alternatives on your pc and set up your trade plan!   Olivier Seban created the Supertrend Indicator to f

What Is Price-to-Earnings Ratio?     The price-to-earnings ratio is a valuation ratio that compares a company's current share price to its earnings per share (EPS). The price-to-earnings ratio is also known as the earnings multiple or the price multiple.   Investors and analysts use P/E ratios to determine the relative value of a company's shares in an apples-to-apples comparison. It can also be used to compare a company to its own track record, as well as to compare aggregate markets to one another or over time.     P/E can be calculated in two ways: trailing (back into the past) or ahead (anticipated).   Formula and Calculation of the P/E Ratio.     This process's formula and calculation are as follows.     ​P/E Ratio = Earnings per share/Market value per share   ​ To calculate the P/E ratio, simply divide the current stock price by the earnings per share (EPS).     The P/E Ratio Explanation   The price-to-earnings ratio (P

What Is Debt-to-Equity Ratio?   The debt-to-equity (D/E) ratio, which measures a company's financial performance, is determined by dividing its total liabilities by the value of its equity holders. The D/E ratio is a crucial indicator in corporate finance. It determines how much debt a business is using to fund operations as opposed to using cash on hand.   How to calculate Debt-to-Equity Ratio?   The information needed to compute the D/E ratio can be found on the balance sheet of a publicly listed company. Subtracting the value of liabilities from total assets on the balance sheet yields the figure for shareholder equity, which is a rearranged form of the balance sheet equation: Assets=Liabilities + Shareholder Equity These balance sheet categories may include items that are not generally considered debt or equity in the traditional sense of a loan or an asset. Because the ratio can be affected by retained earnings or losses, intangible assets, and pension plan adjust

  What Is the Meaning of Return on Equity? A measurement of financial performance known as return on equity (ROE) is obtained by dividing net income by shareholders' equity. ROE is referred to as the return on net assets since shareholders' equity is determined by deducting a company's debt from its assets. ROE is considered to be an indicator of a company's profitability and efficiency in generating profits. The higher the ROE, the more effective management is at producing income and growth from equity capital.   How to Determine Return on Equity (ROE)? Any corporation can calculate its ROE in percentage form if its net income and equity are both positive levels. Before dividends given to common shareholders, after dividends to preferred shareholders, and before interest paid to lenders, net income is computed. Net income is the sum of a company's income, net expenses, and taxes for a specific time period. In order to compute average shareholders'

What Is Return on Capital Employed (ROCE)? Return on capital employed (ROCE) is a financial ratio used to analyse a company's profitability and capital utilisation. In other words, this ratio can help to identify how well a company generates profits from its capital as it is applied. ROCE is one of the many financial indicators available to financial managers, stakeholders, and retail investors when considering a company for investment.  Higher ratios usually indicate that a company is profitable. ·                  Income from investment a financial ratio that analyzes a business's profitability when all of its capital is put to use. ·        ROCE and return on invested capital are closely related concepts.               In the end, the ROCE calculation reveals how much profit a business is making for every ₹1 of invested capital. The more profit a company can make for every ₹1, the better. Therefore, greater profitability across firm comparisons is indicated by a hig