📌What Is a Trading Range?
A trading range is a period during which an asset consistently fluctuates between high and low prices. The upper limit of the range acts as a resistance level, meaning it tends to hinder further price increases. The lower limit of the range serves as a support level, providing a barrier against significant price declines. When an asset...
📍 What is the Adam and Eve Chart Pattern?
In essence, Adam and Eve is a variation of double top and double bottom patterns and is only slightly different from the traditional double bottoms/tops. The pattern is marked by the first bottom or top, the Adam, then the price moves up or down and creates another U-shaped where we can see Eve.
📍 Adam and Eve Double...
📍 When starting a trading career, much emphasis is placed on trading strategies, technical analysis, and indicators, which is important. However, as traders gain experience, they may discover that analysis and strategy become more intuitive as they find their specialization in the market. On the contrary, trading psychology often demands significant effort from...
📍Types of Swing Points
A swing point on your chart is simply a turning point for price in the past, either to create a considerable pullback into an established trend, or to reverse it altogether. When a turning point creates a mere pullback it can be classified as a minor swing point. When it creates the base to reverse a trend, it is classified as a major swing...
📌How to easily identify these patterns?
🟢Cup and Handle Pattern
The cup and handle pattern is a bullish continuation pattern that typically occurs after a significant uptrend. It is characterized by a U-shaped "cup" followed by a smaller consolidation known as the "handle." The cup portion represents a temporary pause or correction in the price, forming a...
🔷Scalping:
Scalping is a trading strategy that involves making multiple quick trades within a short time frame, typically holding positions for just a few minutes. Traders who employ this strategy are referred to as scalpers. The main objective of scalping is to capitalize on small price movements and accumulate small profits that can add up over time. When...
📍 What is the Double Bottom Pattern?
The double bottom pattern is a trend reversal pattern observed on charts, such as bar and Japanese candlestick charts. Similar to the double top pattern, it consists of two bottom levels near a support line called the neckline. The pattern indicates the end of a downtrend and is confirmed by two failed attempts to break the...
When an investment's value fluctuates, the amount of money required to bring it back to its initial value is equal to the amount of change, but with the opposite sign. When expressed as a percentage, the gain and loss percentages will be different. This is because the same dollar amount is being calculated as a percentage of two different initial amounts.
📌The...
In volatile markets, traders can benefit from large jumps in asset prices if they can be turned into opportunities. Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down, with little or no trading in between. As a result, the asset’s chart shows a gap in the normal price pattern. The enterprising trader can...
The rectangle is a classical technical analysis pattern described by horizontal lines showing significant support and resistance. It can be successfully traded by buying at support and selling at resistance or by waiting for a breakout from the formation and using the measuring principle.
📍Understanding the Bullish Rectangle Candlestick Pattern
The bullish...
📌 What is the Rising Wedge Pattern?
The rising wedge is a bearish chart pattern found at the end of an upward trend in financial markets. It suggests a potential reversal in the trend. It is the opposite of the bullish falling wedge pattern that occurs at the end of a downtrend. Traders recognize the rising wedge as a consolidation phase after a medium to...
📍 What Is an Ascending Triangle?
This pattern emerges when the price movement allows for a horizontal line to be drawn across the swing highs, while a rising trendline is drawn along the swing lows. These two lines together form a triangle shape. Traders actively monitor triangle patterns for potential breakouts, which can occur either upward or...
