There are many harmonic chart patterns that traders use to spot potential price reversal periods, and the Butterfly pattern is one of them. But what is Butterfly harmonic pattern trading strategy? The Butterfly harmonic pattern is a retracement and continuation chart formation that indicates a potential price reversal. It is a five-point harmonic pattern with…
There are some very aggressive market strategies that seek to capitalize on very fast-moving markets. The Bump and Run chart pattern is one of such aggressive strategies that will help you spot the end of a trend and the beginning of a new one. But what does the pattern entail? The Bump and Run Reversal…
The triangle pattern is one of the common chart patterns you will encounter when analyzing stocks for short-term trading, and the most reasonable way to trade the pattern is the breakout strategy. What is the breakout triangle strategy? The triangle breakout strategy aims to trade into a trend continuation following a price breakout from a…
Spotting trends at the early stages can be a challenging task, but at least, you can trade the continuation if you know what to look for. Bull and bear flags are popular trend continuation patterns in technical analysis, but here, we will focus on the bear flag. What is the bear flag chart pattern strategy?…
In technical analysis, chart patterns are price action structures that can give a clue about how the price may move next. There are different kinds of chart patterns, and one of them is the ascending triangle pattern. The ascending triangle chart pattern is a triangle-shaped price structure in which the price swing highs end around…
You must have heard the stock market adage: “Buy low and sell high.” It is possibly the most popular slang in stock trading. Buying at the all-time low may be a perfect way to implement the adage, but does it work? And what is actually the all-time low? An all-time low, often abbreviated as ATL,…
Gap trading strategies have been a popular tool for many decades. Gaps vary in size, variations, and volume depending on the asset you are looking at. Gaps can be traded in any instrument, and certain asset classes have substantial daily gaps. This article looks at gap trading strategies in the stock market. We provide you…
As a trader or investor, you want to know the best ways to pick winning stocks, the most advantageous times to buy them, and the most effective risk management techniques to use. This is where the Wyckoff trading strategy comes in. The Wyckoff strategy is a series of market classification, rules, and methodology developed by…
Investors and analysts are always looking for ways to analyze the market, and one method of evaluating the current price of a stock to determine whether it is relatively overpriced or underpriced compared to the average trading price for the day is using the VWAP. Abbreviated as VWAP, the volume-weighted average price is the average…
Should you use profit target in your trading strategy? Many traders use various forms of stops in their trading. One of them is the profit target. A profit target is exactly what the name says: a pre-set price where the trader takes profits and exits the trade/position. Many traders use a profit target, but that…
