Chart courtesy of ChartPattern.com The parabolic curve chart pattern is one of the strongest uptrend patterns a stock can have. This type of pattern goes up the farthest and the fastest as it is under the strongest accumulation and every small pullback is bought by eager traders and investors. The parabolic curve is named after […]
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Transductive reasoning is a type of flawed logic that is most commonly used by very young children to connect meaning between events where there is no correlation. With adulthood it takes the form of superstition or being fooled by randomness. Transductive reasoning causes people to think there are connections between events that are not accurate
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Here is an Option Greeks cheat sheet you can use as a quick reference guide. For those not familiar with option pricing it can also be an educational guide as well. For more about option Greeks check out my article-> Option Greeks Explained. If you are interested in a deeper dive into options trading my Options 101
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If you are interested in trading options the before you start you need a good understanding of what determines the contract price. Understanding what factors determine an options value and how the contract price moves in correlation with the underlying stock is the first step before you start to trade them. Not understanding what can
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A fiat currency is a type of money that has no intrinsic value and can’t be exchanged for any physical commodity or good. A fiat currency is usually created inside a national economy and is legal tender for the buying and selling of goods and as payment for all debts both public and private inside
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The biggest difference between having a cash account or a margin account with your broker for trading and investing is the ability to leverage your available capital. If you have a cash account, you will be transacting any trades or investments with the cash in that account by the settlement date. Cash accounts simply allow you
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This is a guest post by Jake @TrendSpider. In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media as well as the link to sign up for this Sunday’s show at 6 PM EST!
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A risk reversal option strategy play is a position that is constructed by selling short an out-of-the-money put options and also buying long an out-of-the-money call option that both have the same expiration date. The risk reversal option play simulates approximately the profit and loss of owning the underlying asset, it is also called a
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Moving averages are technical trading tools for capturing trends in the stock market. Moving averages are price action filters that can identify a trend by which side of a moving average price is trading on. A vertical moving average can show that a chart is in a trend while a horizontal moving average can show
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3 best trailing stop loss strategy to ride any trend This is a Guest Post by Abhi Raj of windows ground In the journey to being a successful trader, one of the most important pieces of advice you’ll receive is “to start placing stop losses”, but do you wonder why you are not getting
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An ATR trailing stop is one way to manage a trade at both the time of entry as a stop loss setting and if it evolves into a winning trade by exiting when the price reverses far enough to trigger a trailing stop exit. This type of trailing stop uses the technical indicator of the
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This table shows the probability expressed as a percentage for the odds that you will have a certain number of consecutive losing trades in each 100 trade sample of your trading. For example if your win rate is 50% then 9% of the time you will have 10 losing trades in a row for each
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Here are the Elliott Wave Theory rules showing how each wave tends to work out in comparison to past waves, the key correlations with the Fibonacci levels. and approximately the percentage of time that price tends to stay inside each Fibonacci level. This is a quick reference cheat sheet for those wanting to track Elliott
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One big question so many people currently have that are knowledgeable about economics and investing is “What the hell is going on with the stock market?” As the pandemic expanded around the world in late February and early March economies of entire countries and then U.S. states started to shut down and quarantine their citizens
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This is a Guest Post by Jake @TrendSpider In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media as well as the link to sign up for this Sunday’s show at 6 PM EST!
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A drawdown is when your trading or investment account goes lower from its all times high in capital. Your account is either making new all time highs or in a drawdown. No trader or investor continually makes all time highs, everyone spends some time in a drawdown. One of the most powerful ways to insure
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Robert Shiller and Burton Malkiel recently did a debate on Pairagraph on the topic: Does Covid-19 Prove the Stock Market Is Inefficient? The article is reposted here by permission. This is a guest post from pairagraph.com. Genesis by Robert Shiller Economist, 2013 Nobel Prize: The gyrations of the world’s stock markets around the time of the onset of the coronavirus,
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Here is the option play strategy guide from my Options 101 eCourse. The columns give the names of the option play and the sentiment that an option trader would have when they open the position. You can also see if whether the profit and risk is open ended or capped with the contract size if
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A follow-through day is a bullish signal created by William J. O’Neil to quantify a high probability change in a current stock market direction from a downtrend to starting a new up trend. Follow-through days signal during downtrends, corrections, and bear markets when a key stock market index closes much higher than the previous day’s
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In technical analysis a Fibonacci retracement is a trading methodology for determining high probability support and resistance levels on a chart. It uses the Fibonacci sequence and that is where its name comes from. A Fibonacci retracement uses the theory that price swings on charts will usually retrace and backfill a mathematical portion of a
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