Articles on Stock markets
News, Research and Analysis
What is the Broadening Top (Bullish) Pattern?
The Broadening Top pattern forms when the price of a pair progressively makes higher highs (1, 3) 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 pair is rising prior to entering the pattern formation.
This type of formation happens when volatility is high or increasing, and when a pair’s price is moving with high volatility but little or no direction. It potentially indicates growing investor nervousness and indecisiveness.
Trade idea
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a pair 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 difference between the pattern’s highest high and its 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 Housing and Economic Recovery Act (HERA)?
The Housing and Economic Recovery Act did several things, all aiming to help American consumers and lending institutions
What is a Mortgage Subsidy Bond?
Mortgage subsidy bonds are municipal bonds which are used to fund mortgage relief programs (a.k.a. mortgage revenue bond)
How are Pension Benefits Computed?
Enrolled actuaries must be used to establish the benefit formula. The amount of money you will receive (monthly) from
What is the Federal Reserve Bank?
The Federal Reserve Bank is a 12-bank system in the United States that plays the role of the country’s central bank
What are Some of the Biggest Bankruptcies in Recent History?
Before Lehman Brothers and Bear Sterns, probably the most well-known and publicized bankruptcy was the Enron scandal
What is the Capital Market Line?
The Capital Market Line is a complex concept, but put simply, it is a calculation meant to give the investor/analyst a range of potential returns for a portfolio
What is a Financial Advisor?
The term "Financial Advisor" applies to professionals who are compensated for helping to implement investment strategies
Academy: Read our Articles and Sign Up for Lessons
What does Investment Grade Mean?
Investment grade refers to the highest quality of debt available, and usually means the bond has little risk of default.
What is Inflation?
Inflation is the increase in the cost of goods and the decrease in the buying power of a denomination of currency...