The Falling Pennant (or Bearish Pennant) pattern looks like a pennant turned upside down (the mast points up). It forms when falling prices experience a consolidation period, and the price moves within a narrow range defined by the converging lines through points (2, 4) and (3, 5). After the consolidation, the previous trend resumes.
This type of formation happens when anticipation of downtrend is high, and when the price of a pair consolidates during a declining trend. It may indicate growing investor concern of an impending downtrend.
If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with a DOWN trend. Consider selling the pair short or buying a put option at the downward breakout price level. The breakout price level for the Falling Pennant pattern is the last point touching the bottom pattern line (point 4). To identify an exit, calculate the pattern height which is the initial fall between points 1 and 2. Then, subtract the pattern height from the breakout price. When trading, wait for the confirmation move, which is when the price falls below the breakout level.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
“Load” mutual funds are those which have a fee structure that includes a front-end or back-end sales charge
It depends on the 401(k) plan, but in general the answer would be “yes,” if you’re willing to pay the penalty
An IRA provides tax deferred growth of your assets, and can be quite remarkable in comparison with a savings account
A living will is a document that records the wishes of a person for their medical treatment and end-of-life wishes
Publication 529 describes the possible deductions which can be taken in an itemized way on an individual’s tax return
The Triple Tops pattern appears when there are three distinct minor Highs at about the same price level
The Cost of Capital is the hurdle over which a business must get to generate positive cash flow
Fibonacci Retracements are places where a strong trend is set back temporarily by a smaller reverse trend (retracement)
The Triple Bottom pattern appears when there are three distinct low points that represent a consistent support level
An illiquid security is one that cannot easily be sold or exchanged for cash on a timely basis. Examples of illiquid assets are penny stocks, micro-cap stocks,