Technical Analysis

Reversals are common in the market whenever financial instruments move in one direction for a prolonged period. Double tops and bottoms, head and shoulders, and engulfing candlestick are commonly used configurations to predict potential exhaustion points. However, they are not the only ones. Bearish diamond top It’s a less talked about reversal pattern that occurs … [Read more...] about Bearish Diamond Top Configuration: A Reversal Pattern for Liquid Securities

Identification of trends is one of the most important aspects of trading. It is not uncommon for a stock to trade sideways for prolonged periods. At times, however, markets may become volatile, thereby making it difficult to identify where the trend is headed. That is why we need oscillators.  RSI This indicator signals to traders how strong or weak a particular … [Read more...] about RSI vs. Stochastic Oscillator for Trading

Forex consists of a diverse trading community where we find defined camps of traders who religiously subscribe to particular market beliefs and trading methodologies. For instance, more and more traders are adopting price action concepts, even though not everyone agrees with them. Other parts of the community may be die-hard proponents of moving averages and use that as … [Read more...] about An Introduction to Supply and Demand Trading In Forex

Rectangle tops are horizontal patterns drawn as parallel lines from comparable high and low-price positions. Prices lead up to the formation of the pattern, and they oscillate in a trading range over a short time. During this range, the prices move in a wavy or a W-shaped trendline with at least two high positions and two low price positions.  The trader can compare … [Read more...] about How to Use Rectangle Tops in Identifying Breakouts

Introduction The measured-move up (MMU) pattern is a 3-part formation in a stock chart where prices go up, then follow through a retracement before it proceeds to go up again. It describes a long-term bullish reversal. It is the opposite of the measured-move down that occurs as a long-term bearish reversal. The MMU formation begins first with a bullish reversal – then it … [Read more...] about Step-by-Step Guide to Using the Measured-Move up in a Bullish Reversal Pattern