Indicators and ratios, compared

Commonly confused indicators and ratios, side by side: what each measures, when it works and when to use which.

Market basics

  1. 1Technical analysis vs Fundamental analysisFundamental analysis asks what a business is worth; technical analysis studies price and volume to judge timing. Learn how they differ and how to use both.read →
  2. 2Swing trading vs Intraday tradingIntraday trades open and close the same day; swing trades last days to weeks. Compare the time, risk, tools and costs of each before you choose a style.read →

Technical analysis

  1. 1RSI vs StochasticRSI measures the speed of price moves; Stochastic shows where the close sits in its recent range. Learn how they differ and when each one helps you.read →
  2. 2EMA vs SMAEMA gives more weight to recent prices, so it reacts faster than SMA. See how the two moving averages differ, where each one fails and which suits you.read →
  3. 3MACD vs RSIMACD tracks momentum through two moving averages; RSI scores the speed of price moves from 0 to 100. Learn what each tells you and how to combine them.read →
  4. 4Supertrend vs Moving averagesSupertrend gives a clear buy or sell side and a trailing stop; moving averages show trend and strength. See how they compare and how to use them together.read →
  5. 5ADX vs MACDADX tells you how strong a trend is, but not its direction. MACD shows momentum turning up or down. Learn the difference and how to use both together.read →
  6. 6OBV vs VolumeVolume shows how many shares traded each day. OBV adds and subtracts that volume into one running line. Learn how they differ and how to read them together.read →
  7. 7VWAP vs Moving averageVWAP is today’s volume-weighted average price and resets every morning; moving averages span many days. See how they differ and which one suits your trade.read →
  8. 8Bollinger Bands vs RSIBollinger Bands show how far price is swinging around its average; RSI measures the speed of moves. Learn what each is for and how to use the two together.read →

Fundamental analysis

  1. 1ROE vs ROCEROE measures profit on shareholders’ money; ROCE measures profit on all capital, debt included. Learn how they differ and why you should check both.read →
  2. 2P/E ratio vs P/B ratioP/E compares price with earnings; P/B compares price with book value. Learn how the two valuation ratios differ and which one suits which kind of company.read →
  3. 3Net profit vs Cash flow from operationsNet profit counts sales when booked; operating cash flow counts money that actually arrives. Learn why the two differ and what a big gap can warn you about.read →
  4. 4Debt to equity vs Interest coverDebt to equity shows how much a company has borrowed; interest cover shows if it can pay the interest. Learn how to read the two ratios together.read →
  5. 5EBITDA vs Net profitEBITDA is profit before interest, tax, depreciation and amortisation; net profit is what is left for shareholders. Learn how they differ and when each matters.read →

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