There are different types of the harmonic chart pattern. The Bat pattern is one of the many harmonic patterns named after animals, but what is it? The Bat pattern is a simple XABCD harmonic pattern that consists of four price swings and five pivot points — X, A, B, C, and D. One of the…
When it comes to investing, there are many strategies you can adopt. And if you want to make your money work harder, it’s important to choose the right investment approach. A growth stock trading strategy is a method of stock investing that focuses on companies that are expected to grow at an above-average rate compared…
ESG has really gone mainstream, as the framework is becoming an increasingly important consideration in the investment community. With ESG data becoming more prevalent, investors now have ESG trading strategies. But what are ESG trading strategies? ESG trading strategies are an abbreviation for Environmental, Social, and Governance, which are a framework for understanding and measuring…
Keep trading and investing simple. Most people instinctively add features and variables in most areas of life. If your trading strategy seems to stop working, you instinctively add one or more variables to the equation. But what if the right course of action is to do the opposite, to remove variables(s)? Less is more in…
The winter period, October to May, has historically been a very good period for US stocks for many decades. What is the country ETF performance per quarter? How has the stock market in other countries performed? This article looks at the historical performance per quarter for a selection of different country ETFs. We look at…
The period from October to May (next year) has been the best period for US stocks since at least 1960. Practically all the gains have come during these seven months. But if we look at the different sectors of the market, can we spot the same pattern? What is the sector ETF performance per quarter?…
Derivatives are complex financial products that offer a wide range of benefits to those who understand how to trade them and do trade them. Both the flexible forward contracts and their standardized alternatives — futures contracts — provide investors with a means of hedging risk exposure while offering access to the underlying assets. As you…
What is backwardation? Backwardation is a futures market condition where near-term contract prices exceed those for distant contracts, suggesting supply shortages. Derivatives are complex and hard to understand. However, they offer many benefits to those who understand them. Forward contracts are flexible while futures contracts are standardized, they both still offer investors the opportunity to…
When it comes to the major U.S. stock indexes, the S&P 500 index is widely regarded as a barometer of the overall stock market’s performance. Seen as an indicator of how large corporations are performing, it consists of the top 500 companies in the US stock market. But how many companies have ever been a…
What is an auction market? An auction market can take many forms, but in this article, we look at auctions in financial instruments, like stocks, for example. An auction market is a platform for buyers and sellers to meet in the hope of securing favorable transactions. These transactions can occur for any type of assets…
