The Three Rising Valleys pattern forms when three minor Lows (1, 3, 5) arranged along an upward sloping trend line. It often appears at the end of a declining trend – an indication that buyers are overtaking sellers, which ultimately pushes the price higher.
This type of formation happens when investors shift into buying mode following a consolidation period.
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 breakout price level. To identify an exit, compute the target price level by adding the pattern’s height (highest price minus the lowest price within the pattern) to the breakout level (the highest high). When trading, wait for the confirmation move, which is when the price rises above the breakout level.
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.
A convertible bond, also known as convertible debt, is debt that can be converted to equity (in the form of common stock)
Short interest is a term used to describe how many short positions are open for a given security or market at a given time
Leverage is the use of borrowed capital or debt to try and increase the potential return of an investment
An Accelerated Share Repurchase (ASR) is a method where companies can buy back a significant amount of their shares
Account activity is any credit or debit activity in a checking or savings account, or dividends in an investment account
401(k) account balances can be taken to the next place of employment, rolled into IRAs, or cashed out
If you decide to establish a SIMPLE IRA, every eligible employee must be offered a SIMPLE IRA account
Ripple is already making waves in the banking world, and may be poised to become the #1 option for cross-border settlements between banks worldwide
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