In technical analysis, we have different chart patterns to understand crowd psychology. One of such chart pattern is known as ABCD. ABCD pattern forms when prices move higher or lower, followed by a flag pattern and then continue in the direction of the prevailing trend. The ABCD pattern is based on the principle that stock prices move in waves. You will find this … [Read more...] about What is ABCD Patterns and how to trade it
Retail Traders vs. Institutional Traders: What’s the difference
In this article let us look at the different types of traders who are trading in the market. We have teo different types traders: retail and institutional. Retail traders are independent individual traders like you and I. These people basically trade part time or full-time from their own money, not on behalf of a firm or institution. On the other hand, we have biggies … [Read more...] about Retail Traders vs. Institutional Traders: What’s the difference
What is open Interest (OI) in futures
The total number of outstanding or unliquidated contracts at the end of the day is known as open Interest. This means, by knowing open interest (OI) numbers, you will know how many contracts are currently open or held by buyers or owed by sellers in any derivative market, such as futures or options.. Open interest applied primarily to future markets. A contract must … [Read more...] about What is open Interest (OI) in futures
Moving average crossovers-Is golden and death cross an effective indicator to trade
A moving average in technical analysis is used as a tool that smooths out price data by constantly creating updated average prices. In general, common moving average (MA) lengths are 8, 9, 10, 13, 20, 21, 34, 50, 55, 100 and 200. Traders prefer to use two short-term and one long-term moving averages in their charts. You can even use one short-term and one … [Read more...] about Moving average crossovers-Is golden and death cross an effective indicator to trade
How to choose a stock broker to trade and invest
As a retail investor or trader, the only way to buy and sell shares or any other listed securities from the market is through a stock broker. Stock broker is a registered intermediary that acts as mediator between buyers and sellers. You must open your account with a good stock broker to buy or sell stocks. A revolutionary change in the brokerage industry occured … [Read more...] about How to choose a stock broker to trade and invest
3 best trend reversal chart patterns for traders and investors
Reversal price chart patterns allow you to spot trend reversals on a long or shorter timeframe. It allows you to take profit when the market is changing from bullish to bearish or bearish to bullish. In our earlier article, we have discussed about classic continuation chart patterns that traders love to trade. The double top and bottom, triple top and bottom, and the … [Read more...] about 3 best trend reversal chart patterns for traders and investors
What is broadening formation in price chart
Broadening formation shows wider price fluctuations after a trend. This type of chart pattern contrasts well with the triangle chart pattern, where the trading range narrows down before a breakout. Prices fluctuate in such a way that if you connect the highs and lows, the price action will be within two diverging trendlines, one rising and one falling. Here is how a … [Read more...] about What is broadening formation in price chart
Understanding Double Top and Double Bottom Patterns in the Stock Market
In the world of stock trading, recognizing chart patterns is crucial for making informed decisions. Two significant patterns that traders often analyze are the Double Top and Double Bottom. These formations provide insights into potential market reversals and can greatly influence trading strategies. This article will explore the meanings, characteristics, and … [Read more...] about Understanding Double Top and Double Bottom Patterns in the Stock Market
What is outside candle and how to trade
In price action, we have chart patterns which take time to build. In candlestick, we have single, double and triple candlestick patterns. These candlestick patterns help traders to identify signals at an early stage in the development of a new trend. As a general rule, the stronger the preceding trend, the more powerful the effect of the single, double and triple candlestick … [Read more...] about What is outside candle and how to trade
What is Cup and Handle Price Pattern
Chart patterns like a triangle, flag, pennant, wedge, rectangle, head and shoulders, and cup and handle occur when the price of the underlying asset moves in a way that resembles these common shapes. These kinds of price patterns help traders to have a logical entry point, a stop loss location and price target to manage the risk reward ratio of a trade. The Cup and … [Read more...] about What is Cup and Handle Price Pattern