Tag: Technical Analysis

wilshire 5000

What is the Wilshire 5000 Index?

  When we hear “stock index,” we usually think of the S&P 500 or Dow Jones Industrial Average, and rightly so. Many prominent hedge fund managers refer to the S&P as their benchmark, and financial media like CNBC and Bloomberg discuss “the market” in terms of how these indices perform. But, did you know there’s […]

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rising wedge pattern

How to Trade the Rising Wedge Pattern

One of the most effective setups for profitable trading opportunities is the rising wedge pattern. Wedges form as a stock’s price movements tighten between two sloping trend lines that are drawn like a triangle. Many day traders are probably already familiar with rising wedge patterns (opposite of falling wedge patterns) as they are quite common […]

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Chaikin Oscillator

How to Use the Chaikin Oscillator (CO)

What is Chaikin Oscillator? The Chaikin Oscillator (CO), also called the Chaikin Indicator, is used by traders analyze the strength of a price trend based on trading volume. This oscillator is represented by charts: a divergence between this indicator and the price trend shows that most traders have less faith in the current price trend […]

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Double Bottom Pattern

Double Bottom Pattern Explained for Beginners

  We all like to make fun of the unfulfilled predictions of meteorologists, but perhaps the trading community should hold back its ire since weather prognosticators and day traders employ some similar methods. Like day traders, meteorologists are constantly looking for patterns and signals that imply a change is about to occur. Anyone can look […]

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Shooting Star Pattern

How to Trade the Shooting Star Pattern

  The shooting star pattern is a reversal candlestick pattern. At its core, the shooting star is a failed breakout or “fake out” pattern. Trading this strategy aims to take advantage of the fact that most breakouts fail, and helps you identify some clues of a breakout with a high probability of failure.  Throughout this […]

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Point and Figure Chart

Point and Figure Chart Explained for Beginners

If you are going to actively trade stocks as a day trader, then you need to know how to read charts. Charts are the primary tools for technical analysis. They conveniently visualize the price action by plotting the historical market data of the underlying financial instrument on a graph. This visual representation allows for quicker identification […]

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Wyckoff Method

Wyckoff Method Price Action Guide

Stock prices move up and down constantly because of small and large forces. These forces propel prices continuously up and down. If you can identify these forces and make sense of their influence, you can learn to predict stock price movements. The Wyckoff Method is a technical analysis approach to navigating the financial markets based on the study […]

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Harmonic Patterns

Harmonic Patterns Explained for Beginners

  Harmonic Patterns are a type of complex patterns that occur naturally in financial charts based on geometric price action and Fibonacci levels. The patterns were introduced to the trading world by Harold McKinley Gartley in 1932. Gartley created a pattern which he named after himself and outlined in his 1935 book, Profits in the […]

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