Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price for the Cup-and-Handle pattern by adding the pattern’s height (the difference between the highest high and the bottom of the cup) to the price at the right cup lip. The confirmation move is when the security moves past the breakout price above the right cup lip.
To limit potential loss when the price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.
The Cup-and-Handle (sometimes called Cup-and-Holder) pattern is formed when the price of a security initially declines and then rises to form a “U”like rounded shape (1, 2, 3, also known as the Cup). Once it forms the right lip, it is characterized by short, relatively straight price decline (from 3 to 4) forming the handle.
The declining handle potentially forms due to mounting selling pressure created when the security tests its high at the right cup lip. After the sellers give up, the security has the potential to break out to the upside.
Analysts have popularized the notion that the 4-year presidential election cycle holds secrets to bear and bull markets
There is guessing, there are screening programs, and there are advisors. As you can imagine, looking at the list of...
There are many services online and custodians that that can facilitate stock trades. Anybody can buy shares of a...
There are fixed annuities, variable annuities, hybrid annuities, income annuities, period income annuities, and more
Social Security uses mandatory payroll taxes to grow trust funds that are used to pay income to retirees (qualified ppl)
A market order is an order to execute a trade (buy or sell) immediately at whatever the current market price
Collateral is an asset/property that a borrower commits to a lender, which will be forfeited if the borrower defaults
An individual can automatically have their tax return due date extended by 6 months by filing a Form 4868
A moving average ribbon is created by plotting many incremental-length moving average lines on top of the same price chart
Open interest, or OI, can be a very important number for futures, options, and other derivative markets. Open Interest is technically more like the number of outstanding shares