Pattern recognition is an important part of technical analysis. You want to make sure that if you have a déjà vu moment you can act on a situation if you have seen it before. When you are evaluating price action using technical analysis you are gauging the ebbs and flows of investor sentiment based on […]
Although indexes can tell you what the overall market is doing, they can’t drill down and reveal more information. They can’t tell you how many assets are participating in a rally or pull back. They can’t show how many are moving in the opposite direction of the market. That’s why there are market breadth indicators […]
COVID-19 Crisis The past month of financial markets activity can be summed up by one phrase: black swan. While some traders were able to establish short positions well before the pricing-in of the disruptions, predicting the virality of a deadly virus outbreak is pretty much impossible and is why the COVID-19 crisis has caught many […]
A basket trade is an order type where you purchase or sell a group of securities. Basket trading allows you to pinpoint a specific sector, or a type of stock like higher dividend payers, that you believe will outperform. You can also target asset classes other than stocks, including currencies, commodities, and bonds. There are […]
Whether you’re day trading or making long-term investment decisions, it’s important to know what the markets are doing. Often this is done with market indexes, such as the S&P 500 or the Russell 1000. But these values don’t always give you the whole picture, and oftentimes they don’t. That’s why smart traders use market breadth […]
As the novel coronavirus (Covid-19) pandemic continues its dangerous spread around the world, Wall Street investors are becoming more risk-averse by the day. The pandemic looks set to have a significant negative impact on the global economy, companies, and financial markets. At this point, most market analysts are bracing for the possibility of the global […]
Your average trading platform will have anywhere from a few basic types of orders, to dozens of order types, depending on how advanced of a platform. One of those basic order types, included even in web-based discount brokerage platforms, is the buy stop order. What is a Buy Stop Order? A buy stop order is […]
The video streaming wars are intensifying day-by-day. Nowadays, streaming is one of, if not, the best ways to watch all your favorite TV shows and movies. In this article, we will discuss who Hulu is and what services they offer, a little bit about their industry and competitors, and how to buy Hulu stock. Who […]
The Inverse Head and Shoulder Pattern (also called a Head-and-Shoulder Bottom or Upside Down Head-and-Shoulder Pattern) is a fantastic bullish reversal pattern and one of my favorite patterns to trade. For markets that have a fixed supply and are naturally long-biased (the stock market), this pattern is a powerful one for the permabull. In a […]
The Awesome Oscillator (AO) is one of the most popular indicators that are used to measure momentum in the stock and commodity markets. It was developed by Bill Williams, a famous charting enthusiast and technical analyst who approached the markets on a psychological level. In this article, we will detail the calculations used to compile […]
