Finance

A wedge is a price pattern formed as a small triangle during a strong directional up or down move. In wedge formation, price consolidates between two converging trend lines.The two trend lines are drawn by connecting the respective highs and lows. Lines drawn show that the highs and lows of the price pattern are either rising or falling.Wedge shaped trend lines are … [Read more...] about How wedge patterns are formed in price charts

Chart patterns are carefully analysed by technical analysts to place a trade in the stock market. These chart patterns apply to all time frames irrespective of the type of trade you do. This means, you can apply principles of price chart patterns to any time frame, from one-minute candlesticks all the way to daily, weekly or monthly candlestick charts.Before … [Read more...] about 3 classic continuation chart patterns for stock traders and investors

If you closely monitor the stock charts, you will find that stock prices move in one of three directions: up, down, and sideways. No other movements are possible.In an uptrend, the stock moves higher and higher. In other words, an uptrend occurs when the stock price is making a series of higher highs and higher lows, which you can see on a chart.To remain in … [Read more...] about What is an uptrend and how to trade a rising market

In the market, you will find that stock prices move in one of three directions: up, down, and sideways. No other movements are possible.The opposite of an uptrend is known as downtrend, when a security is making a series of lower highs and lower lows. Multiple lower lows and lower highs makes a downtrend.Instead of lower lows and lower highs, many technical analysts … [Read more...] about What is a downtrend and how to trade a falling Market

In this article, we will let you know about the sideways market and the difference between congestion, consolidation and trading in a range.When the market is sideways, the stock may make one of three basic patterns: trading in a range, congestion and consolidation. Each of such patterns tells you a different story.Many times technical analysts refer to a sideways … [Read more...] about Sideways market-Difference between congestion, consolidation and trading in a range