Articles on Stock markets
News, Research and Analysis
What is the Rectangle Top (Bearish) Pattern?
The Rectangle Top pattern forms when the price of a pair 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.
Trade idea
If price breaks out from the bottom pattern boundary, day traders and swing traders should trade with a DOWN trend. Consider selling a pair short or buying a put option at the downward breakout price level. To identify an exit, calculate the pattern height by taking the difference between the support and resistance levels. Then, subtract the pattern height from the breakout price to estimate the target price.
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.
What is defined as a market correction?
A market correction is typically a sharp, sudden decline in stock prices, where they fall in value by around 10% - 20%
Who Manages ETFs?
Several large and well-known investment banks and companies are major players in the ETF industry. There are several large investment houses...
What Is Market Capitalization?
Market capitalization is a measure of a company’s size, in terms of the value of its total outstanding shares
What does Arbitrage Mean?
Arbitrage can take many forms in trading: buying a security in one market and selling it in another for a better price (market arbitrage)
What is Return on Equity?
Master the concept of Return on Equity (ROE) at Tickeron. Learn its connection with the ascending wedge pattern in the trading world. Start your investing journey now
What is a Dividend Rate?
The dividend rate is basically just the value of the annual dividend of a company, stated as the monetary value
What is Income Tax Payable?
Income Tax Payable is an account on a company’s ledger where they reserve amounts that will be used to pay the tax liability
What is a Mortgage Company?
Mortgage companies help to place customers with the most competitive loans that make sense for their situation & finances
What is the Broadening Top (Bearish) Pattern?
The Broadening Top pattern forms when a stock price makes higher highs and lower lows following two widening trend lines
What are “Dark Pools” of Money?
Large institutional investors sometimes trade on “Electronic Trading Crossing Networks,” without publicly exposing them