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Technical Analysis

The Trading Volume

The definition of volume: Volume is the number of shares or contracts that trade over a given period of time, a day usually. Higher volume means more active security. To determine the movement of the volume (up or down), chartists look at the volume bars...

5 Steps For Trading Rectangle Pattern

Here will discuss one of the most popular continuation formations in trading – the rectangle pattern. And definitely we will show you how to identify the pattern and the 5 essential steps to trading the rectangle formation. The Meaning of the Rectangle Pattern in Technical...

How to Trade Double Tops And Double Bottoms

Double Top Definition The double top is a reversal chart pattern with two highs very close in price, it appears at the end of an uptrend. This pattern can be seen in all time-frames. There are a few requirements to classify a chart pattern as a...

How To Trade Flags And Pennants

Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a mid-point of the move. The basic elements of a flag or...

How To Trade The Abandoned Baby Candlestick Pattern

Abandoned Baby Definition: The abandoned baby candlestick formation is a three bar reversal pattern that is similar to the morning and evening star formations and is a very reliable reversal signal when it occurs after a sharp rise or drop. Structure of Abandoned Baby: ⦁ The first candlestick is in...

4 Forms of Support And Resistance

Support and resistance represent the junctures where the forces of supply and demand meet. At first the explanation and idea behind identifying these levels seems easy, but as you'll find out, support and resistance can come in various forms and it is much more...

Harami Candlestick Pattern

The harami pattern is made up of two candlesticks. The first has a large body and the second a small body that is totally encompassed by the first. There are four possible combinations: white/white, white/black, black/white and black/black.  There are two types of harami pattern:  bullish reversal...

How To Find Profit Target For Stock Trade

Setting a target for stock trade is the last issue you must do to complete every stock trade setup. The knowledge of this value is also good stock market trading tool that helps to manage already opened trade. It helps to decide when is...

How To Trade Gaps On Stock Chart

A gap is an area on a price chart in which there were no trades. Normally this occurs between the close of the market on one day and the next day's open.  Gaps can offer evidence that something important has happened to the fundamentals...

3 Most Commonly Used Stock Chart Types

Technical analysis is the study of charts with the goal of determining future price actions. For studying the markets through reading stock charts, these three main chart types are used: 1. Daily bar chart– This is the most widely used chart. It is constructed to...