A "gap-down" in finance refers to the situation where the price of a financial instrument opens significantly lower than its previous closing price. Like a gap-up, this can happen due to various factors such as negative news, disappointing earnings reports, or adverse market conditions, occurring outside of regular trading hours. For traders and investors, a...
In finance, a "gap up" refers to a scenario where the price of a financial instrument, such as a stock, commodity, or currency, opens significantly higher than its previous closing price. This often occurs due to positive news, earnings reports, or other market-moving events that occur outside of regular trading hours. For traders and investors, a gap up can...
A falling wedge is a technical chart pattern that forms when the price of an asset consolidates between two downward sloping trendlines. It's characterized by contracting price swings, with the upper trendline sloping downwards at a steeper angle than the lower trendline. This pattern typically signals a bullish reversal, as it suggests that selling pressure is...
In financial markets, "AB=CD" is a harmonic pattern that traders use to predict potential reversals or continuations in price movements. It's named after its basic structure: the price forms two legs (AB and CD) that are equal in time and price magnitude. A "bullish AB=CD" pattern suggests that the price is likely to rise. Traders look for specific Fibonacci...
In finance and trading, the term "bearish AB=CD" typically refers to a bearish harmonic pattern known as the AB=CD pattern. This pattern is formed by four price points: A, B, C, and D. The AB=CD pattern suggests that the price will move from point A to point B in one direction, then retrace from point B to point C, and finally move from point C to point D in the...
A "bullish Bat" is a harmonic trading pattern that traders use to identify potential reversal points in the financial markets, particularly in stocks, forex, and commodities. It's part of a group of patterns known as harmonic patterns, which are based on Fibonacci retracement and extension levels. The Bullish Bat pattern is characterized by specific Fibonacci...
A "bullish Gartley" refers to a specific pattern that traders look for in financial markets, particularly in technical analysis, to potentially predict future price movements. It's named after its creator, H.M. Gartley, who introduced it in his book "Profits in the Stock Market" in 1935. The bullish Gartley pattern is a harmonic pattern that consists of four...
A "bullish butterfly" is a trading strategy used in the financial markets, particularly in options trading. It's a complex strategy that involves buying and selling multiple options contracts with the aim of profiting from a specific market outlook. In a bullish butterfly, the trader expects the price of the underlying asset to increase moderately. The strategy...
The term "bullish crab" typically refers to a specific pattern in financial trading, specifically in technical analysis. It's a harmonic pattern that traders use to predict potential reversals in the price of an asset. The bullish crab pattern is characterized by specific Fibonacci ratios between price swings. It consists of four price swings, with the second...
The Bullish Butterfly is a complex options trading strategy that aims to profit from a moderate rise in the price of the underlying asset. It's constructed using four options contracts with the same expiration date but different strike prices. Here's how it typically works: 1. **Buying**: - Buy one call option with a lower strike price (closest to the...
The bullish butterfly is another harmonic pattern in technical analysis, similar to the bearish bat pattern but indicating a potential bullish reversal instead. Like other harmonic patterns, it relies on Fibonacci ratios to identify potential entry and exit points in the market. Here are the key features of a bullish butterfly pattern: 1. **Initial Move (XA)**:...
In financial trading, a "bearish bat" is a specific pattern identified within the field of technical analysis. It's considered a harmonic pattern, which means it's based on geometric price patterns found in the market. The bearish bat pattern consists of four price moves, which form specific Fibonacci ratios. These moves are labeled XA, AB, BC, and CD. The...
The "bullish crab" pattern is a specific harmonic pattern utilized in technical analysis to identify potential trend reversals in financial markets. It's considered one of the more advanced patterns and is based on Fibonacci ratios and geometry. Here's an overview of its main characteristics: 1. **Initial Move (XA)**: The pattern starts with an initial move from...
A "bullish flag" is a continuation pattern frequently observed in technical analysis. It typically occurs within an uptrend and is characterized by a brief consolidation or sideways movement, followed by a breakout to the upside, resuming the prior upward trend. Here's how it forms and its main characteristics: 1. **Flagpole**: The bullish flag pattern begins...
The "bearish bat" pattern is yet another harmonic pattern used by traders in technical analysis to forecast potential reversals in financial markets. Similar to other harmonic patterns, it's based on Fibonacci ratios and consists of specific price swings. Here's an overview of its characteristics: 1. **XAB Leg**: The pattern starts with an initial price move...
The "bullish AB=CD" pattern is another harmonic pattern used in technical analysis to identify potential trend reversals in financial markets, particularly in stocks, forex, and commodities. It's based on the Fibonacci ratios and consists of two legs that are equal in terms of price and time. Here's a breakdown of its characteristics: 1. **AB Leg**: The initial...
The "bullish crab" is a pattern in technical analysis used by traders to forecast potential price reversals in financial markets, particularly in stocks or cryptocurrencies. It's considered a harmonic pattern and is identified by specific Fibonacci ratios between price waves. Here's a brief overview of its characteristics: - The pattern typically consists of...
The Bullish Butterfly pattern is another harmonic pattern used in technical analysis. It's similar to the AB=CD pattern but with some distinct characteristics. Here's how it forms: 1. **X to A**: The pattern starts with a significant price move (leg XA), usually in the direction of the prevailing trend. 2. **A to B**: This is followed by a retracement (leg...