![beta in investing explained](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1dXWf3IllU25OdbtpeB9EA_TjwD7Gs4Mtkp_YIpQEkCBMq1zng7xtcIDB5oqlbe4y18Eh_LAjCuF4WHiquVpZBi2k3q15WCiwaL6uAcWrdVE5JahQxdcx1bktHyl2aW1DsZfBP9bLBD_OmwkeySKmp9xl_8AM_iXIDPoVu8YTk3Hnlh140PdAMQ/s1600-rw/beta%20investing.jpg)
The Beginner's Guide to Beta
Beta is a measure of a stock's volatility in relation to the overall market.
By calculating beta, you can measure the stock's volatility with respect to the broader market or index.
If a stock "PQR" has a beta of 2.5, it indicates that for every 1 point change in the market or index, stock "PQR" moves 2.5 points and vice versa.
Stocks with a high beta have a higher risk but a higher return, whereas low beta stocks have a lower risk but a lower return.
A beta of 1 indicates that the security's price tends to move with the market.
A beta greater than 1 indicates that the security's price tends to be more volatile than the market.
A beta of less than 1 means it tends to be less volatile than the market.
![Doji Candlestick](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcnhw7Q8BytBgVXjVp75wrBtgMjXTnPnvd11UgKJtrLK8v5WWZ_tuas9q0_3jNMFNisHfidomX-zKJadRQLh4PWNJdJu_AVZ20FTq5ZPlY_Dn-4oig6OYPjtAVKPNEWRKZTDf9yhPkodel7iyAROdC42G0cb1DQjKftyWsCHXhzVpPrKAFOq5UdPhb/s1600-rw/Doji%20Candle.jpg)
Doji Candlestick
Doji is a very powerful candle shows a balance of supply and demand.
Read More![Hanging Man Candlestick](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgvzgRa7VdK3_6ZZQo4YCs6RC-ktXjTQK5iJ7_ucMnJ-78OsNV7_048oUps-qdpcTuYI7Q1Az79ZJCKX7hCnz19Fjkx-3R_FV4MpyNavkoM6gj7AxlIgGNuESuJ8zlJfQrM2Rqn1jx25UHuVNGv4kUou9Xukr8wgWfELUY5mn4_np5kf32OKm6igA/s1600-rw/hanging%20man%20candlesticks.jpg)
Hanging Man Candlestick
Hanging Man candle which gives a very strong signal of a trend reversal.
Read MoreInverted Hammer Candlestick
This candle implies a very strong signal of a trend reversal (to uptrend).
Read More![Moving Average Indicator](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaVbvdJvvnQwHfyCfkho_H1vap39SpYyf7FNxpzFI4g7ABswfp3AUtwydKvRx9-GYbSYBd7M7lFqW8eSptcSI27W4b_iJG0RZfgbgzds2fADdjJJbzvtU5YwPQkyleVoF8BmCONNhq6hMl7EJaIk1TGa8UkKNa9JEKN1A7BoNCKQfPTYSD9BnN3g/s1600-rw/moving%20average%20indicator.jpg)
Moving Average Indicator
This indicator is used on charts for trend identification.
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