Articles on Stock markets
News, Research and Analysis
What is the Ascending Triangle (Bullish) Pattern?
The Ascending Triangle pattern forms when the price of a pair tests a resistance level and creates a horizontal top line (1, 3, 5), with an upward-sloping bottom line (2, 4) formed by a rising support level. The breakout can either be up or down, and it will determine whether the target price is higher or lower.
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. When the price of a pair consolidates around a certain level, it may indicate growing investor confidence for a significant uptrend.
Trade idea
Once price breaks outside of the triangle, day traders and swing traders should trade with an UP trend. Consider buying a pairat the upward breakout level. To identify an exit, compute the target price by adding the pattern height to the breakout point. For upward breakouts, the level is the top horizontal line (1, 3, 5). The pattern height can be calculated by taking the difference between the resistance level set by the horizontal line, and the lowest low.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.
What is the Law of Demand?
The Law of Demand states that as prices increase, demand will decrease, and vice versa. That is to say, inversely related
What are Load Mutual Funds?
“Load” mutual funds are those which have a fee structure that includes a front-end or back-end sales charge
What is a bull call spread?
A bull call spread is a vertical spread that buys and sells calls in a way that benefits from upward price movement
How Much Will Long-Term Care Insurance Cost?
The cost of long-term care insurance varies depending on the policy and the age of the insured. Expect to pay between...
What is IRS Publication 535, Business Expenses?
Publication 535 is a useful guide which enumerates most of the possible business expenses that can be deducted, describes the extent two which they can be deducted
Bitcoin’s Source Code, Part 2: What Does It Mean That Bitcoin Is Open-Source?
Open-source software code can be viewed and changed by anyone, but it actually works in the favor of cryptocurrencies
How to use the Detrended Price Oscillator in trading
The Detrended Price Oscillator (DPO) is a relatively uncomplicated tool of analysis that can be used to simplify a chart and identify conditions ripe for buying or selling
What is a Ponzi Scheme?
A Ponzi scheme is a scandal where new investment money is used to create the illusion of returns
Crypto: AI Real Time Patterns
What are Specialty Funds?
Specialty funds may be completely unique and offer investors a strategy that they cannot find elsewhere, or they may...