All About Cash and Carry Arbitrage

Arbitrage is an important aspect of trading. Arbitrage is when you buy or sell an asset to take advantage of differences in the market's pricing. Because of its simplicity, arbitrage is one of the most well-known trading strategies. Arbitrage trading …


Meaning of Cash Future Arbitrage

Arbitrage is the use of different prices to leverage the differences in markets. Futures arbitrage refers to the leveraging of the price difference between an asset and its future contract. Every now and again, mispricing can occur in derivative instruments …


Everything on Reverse Cash & Carry Arbitrage

Arbitrage is a key term in trading. Arbitrage is the act of purchasing a security in one market and then selling it in another market at a higher price. Arbitrage is an important part of derivative securities pricing. This includes …


All About Reversal Candlestick pattern

Decoding Candlestick Patterns Candlestick patterns are crucial technical tools that traders use to determine the price movement of underlying assets. These patterns are similar to bar charts, but they are more informative. Candlesticks can capture the opening, closing, high, and …


Meaning Of Inverse Head and Shoulder Pattern

Inverse Head and Shoulder Pattern The formation of the trendline's head and shoulders pattern indicates an uptrend reversal. Inverse head and shoulders patterns in a downtrend are also indicative of a bearish to bullish trend reversal. The inverse head-and-shoulders pattern …


All About Failure Swing Pattern

Swing Knowledge is key to survival in the stock trading world. The first chapter of the stock trade course teaches you how to make a profit. However, understanding the market and reacting to them is the most important part. Failure …


All About Average Directional Index ADX

How to Interpret the Trend Strength Indicator Trades that are in line with a trend have lower risk. A successful trade requires the ability to identify a strong market trend. This skill is essential for every trader. How do you …


Meaning & Strategies of Abandoned Baby Pattern

Understanding the Abandoned Pattern Japanese candlestick patterns are distinctive and rare. The abandoned baby pattern is one example of such a formation. We have already discussed other candlestick patterns that traders recognize as indicating a trend reversal in previous articles. …


What is Rising Wedge Pattern?

When two converging trendlines are drawn in such a way that they connect to each other over ten to 50 periods, a wedge is created. Both lines indicate that lows and highs are changing at different rates. As the lines …


Ascending Triangle Pattern Meaning

A rising triangle chart pattern is used for technical analysis chart reading. It is created by the convergence between a rising trendline at swing lows and horizontal lines at swing highs. These lines create an asymmetrical triangle. When traders see …


Bullish and Bearish Breakaway Candlestick Pattern

Candlestick patterns are one of the most common elements of technical analysis. A candlestick pattern is one of the most popular elements of technical analysis. It depicts the opening and closing prices for the day, as well as the high …


What is a Continuation Pattern?

Traders need to be familiar with the experience of traders when price charts appear random. Although this may be true, there are patterns within these random movements. Technical analysis is about understanding the patterns and charts to predict future price …


Meaning of Cup and Handle Pattern

Some investors believe in fundamental analysis. This involves looking at the company's earnings history, and exploring the overall outlook of the economy and industry before investing in stock. Technical analysis, another major school of investing, is a method of forecasting …


All About Descending Triangle Pattern

Candlestick patterns are an important tool for technical analysis. This trading school believes that history repeats itself in the stock market, which is why they look for trends in securities prices. Candlesticks are rectangle bars that indicate the closing and …


Meaning of Double Bottom Pattern

Double bottom patterns are a type candlestick pattern, which is distinguished by a W-shaped pricing chart. It can be found in line charts and bar charts. When the price of security drops and then increases twice consecutively, it is called …


Meaning of Double Top Pattern

Many believe that to increase wealth via the equity markets, you must stay invested for a long period of time. Although investing long-term can have its advantages, it is not the only way to make a profit. It is possible …


What is Falling Wedge Pattern?

Wedge patterns are a type of candlestick pattern that is used to measure the momentum of price movements in the stock exchange. Steve Nison introduced candlestick patterns to the west as an analytical tool for Japanese rice traders in order …


Meaning of Flag Pattern

Technical analysis will often use the term flag pattern. This is a pattern that occurs when there is a sudden rise or fall, followed by a narrow price range trading and finally a sharp decline. When the second sharp price …


Meaning Of Long Upper Shadow Candlestick

What is Candlesticks? The image below shows two candlesticks that best illustrate this. The white candlestick is shown on the left with high, low, open, close and close marks. This candlestick is used when the closing price exceeds the opening …


All About Pennant Pattern

What is a pennant charts pattern? A pennant in trading is a type of continuation pattern. It is created when a security experiences large-scale movement, followed by consolidation periods with converging lines. Technical analysis refers to the first phase as …