Price/Earnings RatioThe P/E ratio is figured by dividing the price of a stock by the company earnings per share. For example, a stock selling at $50, with earnings at $5 per share for the previous year, has a P/E ratio of 10 (50/5 = 10). This value is also called the multiple.


Relative Strength Index (RSI) A popular oscillator developed by Welles Wilder, Jr. RSI is plotted on a vertical scale from 0 to 100. Values above 70 are considered overbought and values below 30, oversold. When prices are over 70 or below 30 and diverge from price action, a warning is given of a possible trend reversal. See a big article

Earnings The net income of a company during a specific period. Generally, but not necessarily, referring to after-tax income. Earnings are perhaps the single most studied number in a company's financial statements. They show how profitable a company is.