Breakout means the stock quickly turns upward from a sideways move making a new high. In a downtrend, if the stock moves below a support level after trading sideways, then it's called continuation breakout to the downside.Breakouts create excellent trading opportunities for traders.Breakout traders live by the motto, “No price is too high to buy and no price is too low … [Read more...] about What is breakouts and breakdowns in stock trading
Company Law Basics: Important Definitions and Key Concepts You Should Know
Before setting up a company in India, it is important to understand a few basic terms used in the Companies Act, 2013. Many beginners rush into incorporation without knowing what these words actually mean in practice. Later, this creates confusion during compliance, filings, or even while raising money.In this guide, we will slowly explain the most important company law … [Read more...] about Company Law Basics: Important Definitions and Key Concepts You Should Know
What is outside candle and how to trade
In price action, we have chart patterns which take time to build. In candlestick, we have single, double and triple candlestick patterns. These candlestick patterns help traders to identify signals at an early stage in the development of a new trend.As a general rule, the stronger the preceding trend, the more powerful the effect of the single, double and triple candlestick … [Read more...] about What is outside candle and how to trade
What is rounding top and bottom price pattern in stock market
Rounding bottoms occur at the market bottom while rounding tops develop at market top. These chart patterns indicate a potential reversal point on a price chart.Rounding top is also referred to as the “inverse saucer” pattern. It appears as an inverted ‘U’ shape.On the other hand, the rounding bottom appears as a clear “U” shape on the price chart. It is referred to as … [Read more...] about What is rounding top and bottom price pattern in stock market
What is broadening formation in price chart
Broadening formation shows wider price fluctuations after a trend. This type of chart pattern contrasts well with the triangle chart pattern, where the trading range narrows down before a breakout.Prices fluctuate in such a way that if you connect the highs and lows, the price action will be within two diverging trendlines, one rising and one falling.Here is how a … [Read more...] about What is broadening formation in price chart