How to Trade the Diamond Pattern
The Diamond pattern is a very distinctive pattern that utilizes the concept of support and resistance. The pattern signals a reversal of the current trend as it is very similar to a Head and Shoulders pattern. If analyzed correctly, many trading opportunities may arise during and after the pattern. Quick Notes: The Diamond Pattern Not […]
What Is Technical Analysis? – Definitions, Strategies, Examples
Technical analysis is the method of applying chart analysis and examining movements in price. Technical analysts, those who focus and study on technical analysis, use price movement, volume, and market psychology to try and predict trends. Quick Notes: How Does Technical Analysis Work? Technical analysts use concepts like chart patterns, support and resistance, indicators, and […]
What Is Support and Resistance? A Complete Guide
Support and resistance levels are points of supply or demand of the stock. The concept of support and resistance is one of the most discussed topics in technical analysis and the stock market because it leads to so many other topics like chart patterns, indicators, Elliott waves, and more. Quick Notes: What Is Support and […]
How to Use the Price-to-Earnings P/E Ratio
Investors and traders sometimes use what’s called a Price-to-Earnings (P/E) ratio to value a company. It is generally attributed to a strategy of fundamental analysis, which as opposed to technical analysis, is the study of a company’s and its stock’s intrinsic value. This calculation is able to explain how much a company is worth based […]
How to Read and Understand Candlesticks
Candlesticks are a Japanese invention thought to be developed by Munehisa Homma. Candles are used in technical analysis to identify trends and patterns in a company’s stock in more detail than just a regular line chart. They represent the emotions of traders and a more detailed look at a stock’s price. For most charts, the […]
Why Dividends May Be the Eighth Wonder of the World
Albert Einstein is famous for saying, “Compound interest is the eighth wonder of the world. He who understands it earns it… he who doesn’t… pays it.” Dividends are often referred to as a way to make compound interest in the stock market. But what is a dividend? What Is a Dividend? A dividend is an […]
How to Use Stock Splits to Your Advantage
Stock splits are greatly talked about in the stock market community as they can be a powerful catalyst for traders looking to profit. Before understanding how to trade stock splits, let’s first understand the different types of stock splits: Conventional Stock Split A conventional stock split is when the company creates more shares by dividing […]
How to Know What Type of Investor You Are
TYPES OF INVESTORS: Growth Investor Investors that buy into companies that are growing quicker than the stock market is growing, AKA, thriving. Also Read – How To Predict Stock Movement: Support and Resistance Value Investor Value Investors buy into companies when the stock price of said company is lower than what they think the value […]
How To Predict Stock Movement: Support and Resistance
How Do You Predict the Future of the Stock Market? Is accurately predicting the future of the stock market 100% of the time a possibility? Well no, it’s not. Still, certain strategies can increase the likelihood of an investor’s success. Stock movement is constantly trying to be predicted by investors, traders, and software. There are […]
The Bollinger Bands® Indicator Makes Predicting the Stock Market Easy
Bollinger Bands This powerful indicator may be used by traders to identify overbought or oversold signals, and can also be used to measure the volatility of the stock. It is used usually by technical analysts, those who practice technical analysis. Obviously, “Easy” in the title does not mean that trades will always work out 100% […]