Wedge patterns are trend reversal patterns. They are composed of the support and resistance trend lines that move in the same direction as the channel gets narrower, until one of the trend lines get broken and reverse the immediate trend on heavy volume.
a moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set.
Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices together or show some data’s best fit. The resulting line is then used to give the trader a good idea of the direction in which an investment’s value might move.
Making mistakes is part of the learning process when it comes to trading or investing. Investors are typically involved in longer-term holdings and will trade in stocks, exchange-traded funds, and other securities. Traders generally buy and sell futures and options, hold those positions for shorter periods, and are involved in a greater number of transactions.
Support and resistance are terms for two respective levels on a price chart that appear to limit the market’s range of movement. The support level is where the price regularly stops falling and bounces back up, while the resistance level is where the price normally stops rising and dips back down. To draw a accurate … Read more
At just 5 years old, Ahmed began programming after watching his father, Imran, work as a web developer. He started with HTML and CSS, and continued to advance his coding skills, later learning JavaScript and other programs.
Hello traders, in this post, we will be talking about how to trade using the Ichimoku Cloud . This is one of the most common, yet very effective and unique indicators to date and is prized by many traders as it foreshadows possible support and resistance levels.
In this post, we perform an advanced analysis of broadening wedges patterns. We provide a description of each pattern and its implications. We also review the literature in order to find their deterministic cause.
Phase 1 : Stopping the previously dominant trend. The offer prevailed. Decrease in supply is indicated by preliminary support (PS) and sales climax ( SC ). These events are visible on the charts, where widening spreads and high volume reflect the transfer of a huge number of shares from one speculator to another. As soon … Read more
I would like to add a few clarifications to my previous post about the Wyckoff accumulative model