Glossary

Terms and Definitions

Below is a glossary of financial concepts and terms used in the visualization.

Open - This is the price of the first trade for the period (e.g., the first trade of the day). When analyzing daily data, the Open is especially important as it is the consensus price after all interested parties were able to "sleep on it."

High - This is the highest price that the stock traded during the period. It is the point at which there were more sellers than buyers (i.e., there are always sellers willing to sell at higher prices, but the High represents the highest price buyers were willing to pay).

Low - This is the lowest price that the stock traded during the period. It is the point at which there were more buyers than sellers (i.e., there are always buyers willing to buy at lower prices, but the Low represents the lowest price sellers were willing to accept).

Close - This is the last price that the stock traded during the period. Due to its availability, the Close is the most often used price for analysis. The relationship between the Open (the first price) and the Close (the last price) are considered significant by most technicians. This relationship is emphasized in candlestick charts.

Volume - This is the number of shares (or contracts) that were traded during the period. The relationship between prices and volume (e.g., increasing prices accompanied with increasing volume) is important.

S&P 500 - This stands for the Standard and Poor's 500, a stock market index that tracks the stock performance of 500 large companies listed on market exchanges in the United States.

Forward Return - The forward rate of return is the percent change in a stock's closing price over the next 20 trading days. This helps us understand what kind of return we can expect in the stock performance of a company.

RSI - The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a stock's recent price changes to evaluate overvalued or undervalued conditions in the price of that stock. Refer to the video below for a more thorough explanation:

Glossary

Terms and Definitions

Further Reading