Japanese candlestick chart patterns are a way to read and interpret the price of financial instruments. Over the last few decades, traders have been using them to make trading decisions and predict the short-term direction of the price of market instruments. Candlesticks are believed to have been invented in the 1700s by Japanese rice trader called Munehisa […]
Candlestick patterns are representations of market data. They give a clear picture of market movements and tell us a lot about how buyers and sellers interacted at any given time. In this post, we are going to talk about an important Japanese candlestick pattern called bullish abandoned baby pattern. We will explain what it […]
At a time when many traders are scratching their heads trying to understand how stocks can rise during the biggest economic downturn in nearly a century, it is more important than ever to use candlestick patterns within your own day trading strategy to understand price action. Candlestick patterns tell traders about price trends and the market sentiment. They have […]
If you would like to become a successful day trader, it is important to know your chart patterns inside and out. Chart patterns are formed over time and comprise of multiple candlesticks. They are popular among traders because they have the ability to predict future price-action with a high probability. There are several useful […]
One of the great things about trading is that everyone can have their own unique style. Even if two different trading styles conflict, it doesn’t mean that one strategy is right and one is wrong. With thousands upon thousands of stocks to choose from, there’s always an abundance of effective ways to trade. Technical […]
Accurately predicting market bottoms and tops is not an easy task even to the most experienced traders and investors. Most of the time, whether a market moves up or down is near 50/50. Even though some conditions can tilt those odds meaningfully in either direction, it’s hardly enough to prognosticate. Instead, the way of […]
The style of chart scaling you use on your price charts is one of those seemingly unimportant details that can dramatically affect how you perceive market action. Linear vs Logarithmic scaling are the two primary chart scaling styles, and both are available in almost every charting platform. The Difference Between Linear and Logarithmic Charts […]
When we hear “stock index,” we usually think of the S&P 500 or Dow Jones Industrial Average, and rightly so. Many prominent hedge fund managers refer to the S&P as their benchmark, and financial media like CNBC and Bloomberg discuss “the market” in terms of how these indices perform. But, did you know there’s […]
The ability to detect a trading signal above the noisy day-to-day gyrations of the market is crucial for anyone who seeks to become a trader. Buy and hold investors only make money when the market goes up, but when you have a long timeframe, the averages work in your favor. But traders have to […]
One of the most effective setups for profitable trading opportunities is the rising wedge pattern. Wedges form as a stock’s price movements tighten between two sloping trend lines that are drawn like a triangle. Many day traders are probably already familiar with rising wedge patterns (opposite of falling wedge patterns) as they are quite common […]
