let's make learning awesome with better collaboration, this course is part of a Series Value Investing 101.CFDs and Value investing are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs.
Chart pattern trading studies historical price movements on charts to identify patterns that can suggest future price movements. It's a form of technical analysis used by traders to make decisions on buying or selling financial instruments like stocks, currencies, and commodities. Here are some fundamentals of chart pattern trading:
1. Types of Chart Patterns
Trend Patterns: Indicate the continuation of an existing trend. Examples include flags, pennants, and wedges.
Reversal Patterns: Suggest a potential reversal of the current trend. Common examples are head and shoulders, double tops and bottoms, and inverse head and shoulders.
Bilateral Patterns: Can signal either a continuation or reversal, depending on the breakout direction. Triangles (symmetrical, ascending, and descending) are typical examples.
2. Support and Resistance Levels
Support: A price level where a downtrend can pause due to a concentration of demand or buying interest.
Resistance: A price level where an uptrend can pause or reverse due to a concentration of supply or selling interest.
3. Volume
Volume plays a crucial role in confirming the strength of a trend or the validity of a chart pattern. An increase in volume during the formation of a pattern or at the breakout point adds credibility to the signal.
4. Breakouts
A breakout occurs when the price moves outside a defined support or resistance level with increased volume. This can indicate the start of a new trend or the continuation of an existing one.
5. Time Frames
Patterns can form over various time frames, from minutes to years. Short-term traders might focus on patterns that form over minutes or hours, while long-term investors might look at patterns forming over weeks, months, or years.
6. Psychology Behind Patterns
Chart patterns represent the collective actions and psychology of market participants. Understanding the psychology behind pattern formation can provide insights into future price movements.
Simple and effective time management techniques and strategies to increase the productively exponentially
Learn how to create, structure, and optimise a blog post
A completely unique guitar learning experience where you are going to jam along with a real band!
Draw Ferb Using CSS From Scratch: Practical CSS Art - Master CSS Skills
Business models, examples, practical steps you should take, how to validate an idea with MVP technique and more.
I am a self-taught software practitioner and believe in open-source for digital trust and transparency in digital ledgers and distributed ledgers for computing. I have shown presentable commitment and excellence in product engineering for software and DevOps practices for 6 years in the global market. I had a success rate in my endeavors for four years.
I am very compatible with soft-skill mastery and have a presentable devotion to improvement at the same time I am introverted in my studies and appreciate oriented channels for better growth curves.
