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Showing posts from March, 2021

How the Double Top Pattern Works

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  The double top pattern is a twin-peak chart pattern representing a bearish reversal in which the price reaches the same levels twice with a small decline in between the two peaks. A double top pattern usually signals an intermediate or long-term change in trend. When identifying the pattern, traders need to understand that the peaks and troughs don’t have to form a perfect M shape for the pattern to emerge. top 10 trading platforms Before the pattern starts to emerge, there is a considerable uptrend spanning across many months. The first top is the highest value the trend has reached during the current trend. After the first top, there is usually a price recession of 10 to 20%. This decline in asset value is generally insignificant; however, the fall can sometimes be prolonged due to a decrease in demand.The movement towards the second peak usually takes place with a low volume . falling wedge breakout Once the value reaches the first peak level, it resists moving upwards. ...

Stock Chart Patterns

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  Stock chart patterns  can be a vital tool for investors. They provide an exceptionally detailed level of a stock’s trend lines. This can give a major leg up against the competition. This is why they are used by the likes of retail investors, billion-dollar hedge funds and everyone in between. Basically, best option trading platform  are a way to view the ups and downs of a stock’s price over the course of time… and then use that information to help predict future movement. They can be a micro-analysis of a single day’s worth of trading. Or they can offer a long-term view of a stock’s performance over the course of several years.  tend to repeat themselves over and over again. So when investor’s see them forming, they can get a better idea of which direction a stock’s price may be heading.   How the Ascending Triangle Pattern Works   You’ve likely heard somebody say the phrase, “I just happened to be in the right place at the right time.”...

Explaining BTFD and STFR in the Simplest Way I Can

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  I might want to take second to teach the majority on these two footing. On the off chance that you run certain circles, you definitely understand what BTFD   stock and STFR mean. You can quit perusing. This may be excessively simple for you. Yet, in the event that you don't, and need to up your entire look, this post is for you. To clarify BTFD meaning   and STFR I will show both of you outlines. The first is for BTFD. There's an upturn, it's a positively trending market. Things are working out in a good way, and request is going off the diagrams. In this tasty market climate, plunges are blessings. Plunges are your dearest companion. Like Jeff Bezos once told an originator before he purchased his organization altogether, plunges are the   you should have! So BTFD is purchasing dunks in an upswing. You're searching for the best minutes to add or lower your expense premise. Your outlook is engaged around a certain something and one thing just: plunges are life....

How the Cup and Handle Pattern Works

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  A   and handle design happens when the basic resource frames a diagram that looks like a   looking like a U, and a cup and handle addressed by a slight descending pattern after the . cup and handle pattern The shape is framed when there's a value wave down, which is then trailed by an adjustment period, followed again by a convention of around a similar size as the earlier pattern. This value activity is the thing that frames the distinguishing   and handle shape.William O'Neil at first perceived this famous stock diagram design in 1988. To recognize the   and handle development O'Neil claims the handle ought to broaden no longer than one-fifth to one-quarter the length of the . chart patterns The handle will stay near the earlier highs, which will crush out the short-dealers and cause new purchasers to enter the market.The development is typically started by low-exchanging volume, trailed by high-volume as the left lip structures, at that point falling v...

Short Call Option Strategy

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  The short call option , also known as uncovered or naked call, consist of selling a call without taking a position in the underlying stock. For those who are new to options, they should avoid the short call option as it is a high-risk strategy with limited profits.  More advanced traders use a short call to profit from unique situations where they receive a premium for taking on risk. Let’s take a more in-depth look at the short call option strategy. Investors open the short call strategy when the prediction for the underlying asset is bearish to neutral. Upon making the sale, the trader has an obligation to sell the stock at the strike price if the buyer of the short call exercises the option. This should not be confused with the  short put option , where the seller has an obligation to buy the stock patterns at the strike price. In the chart above, once the stock moves past strike price A, the trader starts to lose their profit. Once it moves past the strike price...

Options Trading Strategies

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Options trading strategies alternatives are contingent subordinate agreements that permit purchasers of the agreements (choice holders) to purchase or sell a security at a picked cost. Choice purchasers are charged a sum called a "premium" by the merchants for a right. Options strategies Should showcase costs be horrible for alternative holders, they will allow the choice to lapse useless, hence guaranteeing the misfortunes are not higher than the premium. stock patterns Conversely, alternative dealers (choice essayists) accept more serious danger than the choice purchasers, which is the reason they request this option premium . Choices are partitioned into "call" and "put" choices. With a call choice, the purchaser of the agreement buys the option to purchase the hidden resource later on at a foreordained cost, called practice cost or strike cost. With a put choice, the purchaser gains the option to sell the basic resource later on at the foreordained ...