EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is the Triple Tops (Bearish) Pattern?
The Triple Tops pattern appears when there are three distinct minor Highs (1, 3, 5) at about the same price level. The pair is testing the upper resistance level (horizontal line formed by (1, 3, 5), but the price ultimately declines as buyers give up.
This type of formation potentially happens when investors can not break the resistance price. There is a distinct possibility that market participants will sell out, and the price can move down with big volumes (leading up to the breakout).
Trade idea
If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with the DOWN trend. Consider selling the pair short or buying a put option at a downward breakout price level. To identify an exit, calculate the target price by subtracting the pattern height from the breakout level. The pattern’s height is the highest high minus the lowest low, or the bottom resistance within the pattern. 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.
What was the "Flash Crash"?
Explore the historic 'Flash Crash' of 2010, a moment of extreme market volatility triggered by technical errors. Understand its causes, swift recovery, and the lessons it imparts about the importance of composure during market turbulence and the role of robust market structures.
What are 'Liar Loans'?
Uncover the concept of 'Liar Loans', a type of mortgage granted with minimal documentation, their role in the 2008 financial crisis, and the regulations put in place to prevent a repeat of such lending practices. Learn about the implications for borrowers today
How to use the Advance/Decline Ratio in trading
The Advance/Decline Ratio places the number of advancing stocks over the number of declining stocks for a day or time period, and the result is a ratio
What is Dow Theory?
Dow Theory is probably the longest-standing analysis methodology still used in modern finance
What is Bitcoin lending?
The cryptocurrency community has opened up creative options for making money in the form of lending platforms
What is the Falling Wedge (Bearish) Pattern?
The Falling Wedge pattern forms when prices appear to spiral downward, with lower lows and lower highs
AI Screener: Instruction Manual
What Is a Cross Trade?
Explore the world of cross trades, their benefits in finance, risks to market integrity, and regulatory scrutiny. Understand how they impact market dynamics and the need for transparency in modern financial landscapes.
What Are Free File Fillable Tax Forms?
Simplify your tax season with Free File Fillable Tax Forms, a valuable IRS resource for eligible taxpayers. Learn how these digital forms streamline the filing process, potentially leading to faster refunds and ensuring accurate tax returns. Whether you're a seasoned filer or new to taxes...
FAQ: How is the stop loss determined for the AI robots?
Learn how AI robots determine stop loss values, crucial for managing trading risks. Our guide explains the variation in stop loss strategies, typically set around 3% from the entry point, including trailing stops and other methods, tailored to each robot's algorithm.