Technical Analysis

Introduction A broadening bottom is a chart pattern formed by two divergent horn-shaped lines moving between horizontal and vertical directions. The shape forms a symmetrical triangle or a wedge that increases over time. They describe a short-term bullish reversal from a bearish trend. The price action of the stock opens outward after it begins forming the broadening … [Read more...] about Step-by-Step Guide to Trade the Broadening Bottoms

Stocks, currency, and commodity prices don't behave randomly or chaotically. Instead, they follow specific patterns that repeatedly occur, which experienced traders leverage to squeeze substantial profits in various marketplaces. The Elliott Wave is a perfect pattern analysis theory commonly used in technical analysis. The strategy is based on people’s psychology while … [Read more...] about Elliott Wave Theory: The Ideal Price Pattern Analysis Tool

Rectangle bottoms are formed by two horizontal trend lines that oscillate in a parallel direction. This pattern is formed after prices move in a downtrend before it pulls up a short-term bullish reversal in an upward breakout. The pattern can also indicate a downward bearish continuation in the short-term instead of the upward breakout. The difference with the rectangle tops is … [Read more...] about Rectangle Bottoms and How to Predict an Upward Breakout

Relative Strength Index lies in the range of 0 to 100, and if the value is 30 or below, the market is said to be oversold, and the prices are likely to move upwards at this point. There are some individuals who interpret this situation as a trend reversal signal, which signifies a purchasing opportunity. If the value is 70 or more, the market is overbought, and the prices are … [Read more...] about Relative Strength Index and… – Top 5 Charts for You

Trading Strategies: An Introduction Trading the forex can be deemed as a daunting task as only a few are able to succeed. It is undoubtedly not a get rich scheme but is a mixture of constant struggles and efforts that includes managing your risk, psychology, and trading strategy. Those who begin their path in dtrading are sometimes let astray by the hundreds of … [Read more...] about Price Action Strategy: Breaking it Down from Weekly to M15