Inexplicably, upon publishing this post, the Title Chart becomes distorted beyond recognition thus,
all references are to this Original Chart - below
Do markets trend on the medium term (months) and mean-revert on the long run (years)?
Does Black's intuition bear out that prices tend to be off approximately by a factor of 2? (Taking years to equilibrate.)...
A price guess has 33% to be correct because the price has only three directions. The price of a security may trade higher, may trade in a narrow range, or trade lower.
Thank you for reading!
Greenfield
Disclosure: I am not a financial advisor. This is not a recommendation, not a representation, and not a solicitation. You should do your...
Elliott Wave Theory
What is the Elliott Wave Theory?
The Elliott Wave Theory came from Mr. Ralph Nelson Elliott in the 1930s. The Elliott Wave Theory said that there are five waves in the main trend with three waves in a correction. The smaller patterns together form the bigger pattern.
Pattern Identification
Wave 1, 2, 3, 4, and 5 run in the direction of...
The Golden Cross Against The Death Cross
What is a simple moving average? A simple moving average of the price is a mathematical method by taking the sum of the price in the timeframe you decided to use and then divide that by the total number of the price you decided to use. An exponential moving average of price places more weight on recent price.
What...
How to trade stocks with call and put options?
Why one may consider options trading?
One may consider options trading to generate income, to hedge his or her portfolio, and to speculate the next price move.
What is a call option?
A call option allows the option buyer the right, but not the obligation to buy a security at a predetermined price within a specific...
How to trade the major bearish trendline?
The major bearish trendline consists of three corrective waves according to the Elliott wave principle. The three major corrective waves are labeled as Leg A, Leg B, and Leg C.
The common characteristics of Leg A
Leg A will form a top formation like a double top, a head and shoulder top pattern, or a triple top...
The Laws of Supply and Demand Affects the Price Movement
1. When supply exceeds demand, the price is more likely to fall.
2. As the price is falling, supply will increase, and demand will decrease. As a result, the price will fall faster.
3. At valleys, demand is greater than supply; therefore, the price is more likely to increase.
4. At peaks, supply...
