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What is the Rectangle Top (Bullish) Pattern?
The Rectangle Top pattern forms when the price of a security is stuck in a range bound motion. Two horizontal lines (top: 1, 3, 5) and (bottom: 2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first buyers or sellers the price can breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong uptrend leading into the formation. Continue reading...
What is the Rectangle Top (Bearish) Pattern?
The Rectangle Top pattern forms when the price of a security is stuck in a rangebound motion, and it bounces between support and resistance levels. Two horizontal lines are formed (top: 1, 3, 5) and (bottom: 2, 4) as a result. Depending on who gives up first – buyers or sellers – the price can Breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong uptrend leading into the formation. Continue reading...
What is the Rectangle Bottom (Bullish) Pattern?
The Rectangle Bottom pattern forms when the price of a security is stuck in a range bound motion. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first buyers or sellers the price can breakout in either direction. This pattern is commonly associated with directionless markets. Usually, the pattern performs better when there is a strong downtrend leading into the formation. Continue reading...
What is the Rectangle Bottom (Bearish) Pattern?
The Rectangle Bottom pattern forms when the price of a security is stuck in a rangebound motion, bouncing between support and resistance levels. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern. Depending on who gives up first buyers or sellers the price can Breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong downtrend leading into the formation. Continue reading...
The Rectangle Top (Bullish) Pattern in Trading: A Comprehensive Analysis
Unlock the secrets of the Rectangle Top (Bullish) Pattern in stock trading! Explore how this pattern, formed in range-bound markets, guides traders towards profitable breakout strategies. Dive into the psychological aspects, from anticipation to decision-making, and learn how Tickeron's RTP tool transforms pattern trading with AI-driven analysis and confidence ratings. Perfect for both new and seasoned traders, this article is your key to mastering the Rectangle Top Pattern and navigating stock market volatility with expertise. Continue reading...
Top Stock Chart Patterns
Chart patterns are shapes that sometimes appear in the charts of securities prices. Some of them may prove useful to you. Some frequently discussed chart patterns include Head and Shoulders, Double/Triple Bottom/Top, Cups and Saucers, Flags and Pennants, and others. Generally, it can be useful to compare and connect the troughs to each other and the peaks to each other to see if there is a trend confirmation if the breadth is narrowing, or if a reversal might be imminent. Continue reading...
Rectangle Patterns in Technical Analysis: What Do They Really Tell Us?
Unlock the secrets of rectangle patterns in technical analysis. As a trader, chart patterns are your compass, guiding your buy and sell decisions. The rectangle pattern, characterized by its horizontal support and resistance levels, signifies market indecision. But what happens when there's a breakout? How do you differentiate it from other patterns like the head and shoulders? Delve into this comprehensive guide, exploring the intricacies of rectangle patterns, their real-world applications, and the strategies to employ for optimal results. Equip yourself with the knowledge to navigate the financial markets with precision and confidence. Continue reading...
Analyzing the Rectangle Top (Bearish) Pattern in Stock Trading
Navigate the complexities of bearish stock trading with our in-depth analysis of the Rectangle Top Pattern. Learn how this crucial pattern forms in range-bound markets, signaling potential downtrends, and discover effective trading strategies to capitalize on these movements. Uncover the psychological underpinnings of pattern trading, from cognitive pattern recognition to emotional responses, and master the art of balancing risk and reward in the volatile stock market. Continue reading...
What Is the Rectangle Pattern?
The rectangle pattern is a classical technical analysis formation characterized by horizontal lines representing significant support and resistance levels. This pattern illustrates a market in a state of indecision, as prices oscillate between these well-defined boundaries. The rectangle pattern ends when a breakout occurs, signifying a decisive move beyond these levels. Traders have two primary approaches when dealing with rectangles: trading within the pattern by buying near support and selling or shorting near resistance, or waiting for a breakout to occur. Continue reading...
How to use the Broadening Top (Bullish) Pattern in trading
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is the difference between the pattern’s highest high and its lowest low. Continue reading...
What is bottom-up investing?
Bottom-up investing is the practice of looking for solid companies and investing in them as opposed to investing in indexes and basing that decision on broader market/macro conditions. In bottom-up investing, an investor or advisor takes the stance that the best investment portfolio will not be a broad allocation across market indices, but that an optimal portfolio should be built from the bottom-up with the stocks and bonds of individual companies whose fundamentals and individual potential have been analyzed. Continue reading...
What is the Broadening Top (Bearish) Pattern?
The Broadening Top pattern forms when a security price makes higher highs (1, 3, 5) and lower lows (2, 4) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Top from a Broadening Bottom is that the price of the security is rising prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security’s price is moving with high volatility but little or no direction. It indicates growing investor nervousness and indecisiveness. Continue reading...
What is the Broadening Bottom (Bearish) Pattern?
The Broadening Bottom pattern forms when a security price makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security's price is moving with high volatility but or no direction. It potentially indicates growing investor nervousness and a little indecisiveness. Continue reading...
What is the Triple Tops (Bearish) Pattern?
The Triple Tops pattern appears when there are three distinct minor Highs (1, 3, 5) at about the same price level. The security is testing the upper resistance level (horizontal line formed by (1, 3, 5), but the price ultimately declines as buyers give up. This type of formation potentially happens when investors can not break the resistance price. There is a distinct possibility that market participants will sell out, and the price can move down with big volumes (leading up to the breakout). Continue reading...
How to use the Broadening Wedge Ascending (Bullish) Pattern in trading
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price for this formation by adding the height of the pattern to the upward breakout level. Pattern height is the difference between the breakout price (the highest high within the pattern) and the highest low. Continue reading...
What is the Symmetrical Triangle Top (Bullish) Pattern?
The Symmetrical Triangle Top pattern forms when the price of a security fails to retest a high or low and ultimately forms two narrowing trend lines. The price is expected to move up or down past the triangle depending on which line is broken first. The price movement inside the triangle should fill the shape with some uniformity, without leaving large blank areas. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout). Continue reading...
How to use the Broadening Wedge Descending (Bullish) Pattern in trading
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price level. To identify an exit, compute the target price for by adding the height of the pattern to the upward Breakout level. Pattern height is the difference between the highest high and the lowest low. The upward Breakout level is the highest high. Continue reading...
How Does a 401(k) Work?
You may know that a 401(k) allows you to make payroll-deducted contributions to a retirement account before taxes are taken out, but how does it work? Employees can either become participants in a 401(k) by voluntary enrollment or by automatic enrollment with the ability to opt-out. Contributions go in before taxes are taken out, and this can reduce an individual’s taxable income or even income bracket for the year. Continue reading...
What are the 401(k) Contribution Limits?
The contribution limits of 401(k)s are generally increased year-to-year and published by the IRS. As of 2016, an individual can contribute up to $18,000, or 100% of compensation, into their 401(k) account on a pre-tax basis. This is the employee’s contribution only, and does not include employer contributions. There is a $35,000 window that can hold employer contributions, which may contain matching contributions as well as a profit-sharing component for a total of $53,000 in employee/employer contributions per year. Continue reading...
What are the 457 Plan Contribution Limits?
Contribution limits depend on if you are making contributions as a government employee, a non-profit employee, or a highly compensated employee. Government employees can defer up to $18,000, plus a $6,000 catch-up contribution for those over 50, in 2016. These plans use the same elective deferral limits as 401(k)s. A non-governmental, non-profit employee can only contribute the $18,000, and is not allowed to make the $6,000 catch-up. Both of these types of employees are allowed to use the alternate catch-up provision of 457s, however. Continue reading...