Articles on Stock markets
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What is the Rectangle Top (Bullish) Pattern?
The Rectangle Top pattern forms when the price of a pair is stuck in a range bound motion. Two horizontal lines (top: 1, 3, 5) and (bottom: 2, 4) form the pattern as the pair 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.
Trade idea
If 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 breakout price level. To identify an exit, compute the target price level by adding the pattern height (which is the distance between the horizontal line (from top to bottom) and add it from the breakout price.
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 a Traditional IRA?
A Traditional IRA holds money tax-deferred until retirement. An IRA is an account with tax-deferred growth of assets
What is the Broadening Wedge Descending (Bearish) Pattern?
The Broadening Wedge Descending pattern forms when a currency pair price makes lower lows and lower highs, forming two slopes
What is Dividend Enhanced Convertible Stock (DECS)?
DECS - This is a type of automatically convertible security that comes in the form of preferred stock shares, which...
What are Industrials Stocks?
Industrials stocks include companies that are in the business of construction and manufacturing
If I Want to Establish a SIMPLE IRA, Do I Have to Establish One For All Owners of My Business?
Only employees must be included in SIMPLE IRAs. The IRS has about 20 criteria for assessing whether an employee-employer relationship exists.
Where do I Get Started in Saving for Retirement?
Your employer is usually the best place to start, but you can also open your own retirement account (an IRA or Roth IRA)
What is a momentum trading system?
Momentum trading usually involves long positions in a security that has been experiencing an uptrend and high trading
What is a currency peg?
Pegged currencies are not discussed often in the Forex market because their value is tied directly to the value of another
What does Ticker Mean?
A ticker symbol is an abbreviation used to uniquely identify publicly traded shares of a particular stock or security on whatever market it trades on
What is a strike price?
A strike price names the price of the underlying security in an options contract at which the underlying security will trade