There are four primary different types of the most popular used moving averages on charts by traders: Simple (SMA), Exponential (EMA), Smoothed (SMMA), and Volume Weighted (VWMA). Different moving averages can be calculated different ways depending on their type using any sequential data sample size, this could include opening and closing prices, highest and lowest […]
Types of Moving Averages Read More »
Market Bubble Stages Market bubbles go through four stages on charts. Stealth Phase The early stealth phase happens at the beginning of a new market cycle as it goes sideways and forms a price base. The breakout of this range over resistance is the signal of the potential for the beginning of a new uptrend.
Market Cycles Chart Read More »
The Elliott Wave theory is a method of technical analysis that tries to quantify repeating long-term price action patterns correlated to changes in market psychology and sentiment. This theory attempts to identify primary impulse waves showing the long-term chart trend and also corrective reversal waves that are inverse to that larger trend. Elliott Wave Principle
Elliott Wave Theory Read More »
Technical analysis is a process used to quantify the price action on the chart of a security and identify trading and investing opportunities based on the patterns created by buyers and sellers. Technical analysts believe past and present trading activity in price changes can be used to create an edge for what will happen next
Technical Analysis Methods Read More »
This is a guest post by bapital.com Technical analysis can help a trader to analyze the market and find trading setups to trade. Using technical analysis to study the price charts of any financial market can offer traders both buying and shorting signals. To use technical analysis to find trade setups: Use technical indicators to
How To Use Technical Analysis To Find Trading Setups Read More »
Options Delta Meaning What is delta in options? The delta of an option is part of the option Greek pricing model and prices in the magnitude of the move in the underlier that the option will capture based on the odds of the option expiring in-the-money. Option delta is represented as the velocity of a
Option Greeks Definitions Read More »
Here is a great technical indicators cheat sheet graphic created by Tradeciety.com What are the 4 types of indicators? Trend Indicators These indicators measure the direction of price action through quantifying uptrends and downtrends on a chart. They include moving averages and parabolic SAR. Momentum Indicators These indicators measure the magnitude and strength of movement
Technical Indicators Cheat Sheet Read More »
This is a guest post by Christopher Russell of TheStockDork.com As an investor, you dedicate your hard-earned money to one or multiple financial schemes, property, commercial ventures, or shares, expecting to achieve a profit or an increase in value over time. Therefore, this calls for investing in things that you understand but doesn’t mean you
What are the 4 Rules of Investing? Read More »
Image source www.dakotavalue.com This chart shows top investors returns or their Alpha versus the market returns. What is Alpha Return? Alpha (α) is used in investing as a measure of performance of returns of an investment or investor returns that are higher than a relative benchmark index. Alpha is the term used in investing to describe
Best Investors of All Time Returns Read More »
The RSI indicator strategy uses the Relative Strength Index to make buy and sell decisions on a chart based on oversold and overbought reading versus the price of a stock or security. What Does the Relative Strength Index (RSI) Measure? The Relative Strength Index (RSI) is a technical indicator that traders use to quantify the
RSI Indicator Strategy Read More »
When implied volatility for options pricing is high it is usually the best risk/reward ratio to look at selling option premium with strategies like iron condors, credit spreads and short strangles. When implied volatility falls the price of options can drop quickly creating profits for short volatility option plays. Should I buy options when volatility
Option Strategies For High Volatility Read More »
A candlestick is a type of chart used in trading as a visual representation of past and current price action in specified timeframes. A candlestick consists of the body with an upper or lower wick or shadow. Candlesticks are created using the opening and closing prices along with the trading range of the candlestick period.
Candlestick Patterns Explained Read More »
A list of the current most shorted stocks right now can be a great place to look for potential deep dip value buys. The stocks with the highest short interest on major U.S. stock exchanges is also a good list to watch and stay updated for potential short squeeze opportunities. Highest Short Interest Stocks 2022 The below
Most Shorted Stocks June 2022 Read More »
Chart courtesy of ChartPattern.com A parabolic curve in stocks is when a chart makes an upward price move that looks like the right side of a parabolic curve on the chart. A parabolic move happens when the buying pressure on a stock creates an exponential move in the price due to the speed and magnitude
What is a Parabolic Curve in Stocks? Read More »
The cup and handle pattern is a bullish continuation pattern. This pattern gives a momentum buy signal as price action breaks out of the handle in the formation. It was originally intended to be used with high growth stocks within the ‘CAN SLIM’ system. I cup and handle chart pattern ideally takes place early in bull markets
Cup and Handle Pattern Guide Read More »
A Rising Wedge is a bearish chart pattern that forms during a downtrend in price action that has upward trend lines. A Falling Wedge is a bullish chart pattern that forms during an uptrend in price action with downward trend lines. Wedge patterns can be continuation or reversal patterns depending on which way they breakout.
Rising Wedge vs Falling Wedge Read More »
The four stages of a market cycle on a long-term chart are the phases of accumulation, uptrend, distribution, and downtrend. All markets tend to eventually go through all four of these phases as a full cycle plays out from the lows to the highs and back lower again. Accumulation Phase Accumulation occurs after the market
What Are the 4 Market Cycles? Read More »
Swing Trading Definition Swing trading is a method of trading that tries to capture short-term or medium-term moves on a chart over a period of multiple days or weeks. Swing traders primarily use technical price signals for trading the moves in price action at the beginning and end of trends or inside an established wide
Swing Trading Strategies Read More »
How many types of chart patterns are there? There are three main types of chart patterns which are used in technical analysis: traditional chart patterns, harmonic patterns, and candlestick patterns. Traditional Chart Patterns Traditional chart patterns identify the behavior of traders and investors on a chart based on support and resistance trend lines. The purpose of
Chart Patterns in Technical Analysis Read More »
RSI divergence signals show traders when price action and the RSI are no longer showing the same momentum. The RSI shows the magnitude of a price move in a specific timeframe. The RSI is one of the most popular oscillators used in technical analysis. A divergence shows the relation between the RSI and current price
Types of RSI Divergence Read More »