A List of the Most Important Price Action Patterns
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Course Content
Course Content Basic Forex Education (12 Topics) Lesson Content 12 Steps Why Trade Forex When to Trade Forex Trading Terminology Or Where Am I Going Long How To Trade With Leverage Whats a PIP How To Place a Trade in Forex Types of Forex Orders Technical Analysis in Forex Fundamental Analysis in Forex Types of Forex Charts Support and Resistance in Forex Trendlines Fibonacci (4 Topics) Lesson Content 4 Steps Fibonacci Forex Fibonacci Extensions Learn Forex Fibonacci Fan and Arcs Learn Forex Combining Fibonacci With Other Technical Analysis Tools Understanding Candlesticks (13 Topics) Lesson Content 13 Steps Candlesticks Doji Candlestick in Forex Marubazu Candlestick in Forex Hammer and Hanging Man Candlesticks Shooting Star and Inverted Hammer Candlestick Bullish Piercing Pattern Dark Cloud Cover Pattern Bullish and Bearish engulfing patterns Tweezer Tops and Bottoms Morning and Evening Star Patterns 3 White Soldiers 3 Black Crows 3 Inside Up 3 Inside Down Pattern Rising and Falling Three Methods Chart Formation Patterns (13 Topics) Lesson Content 13 Steps Forex Double Top and Double Bottom Formation Patterns Learn Forex Head and Shoulders Pattern Forex Inverse Head and Shoulders Pattern Forex Bull Flag Formation Patterns Forex Bear Flag Patterns Forex Bullish and Bearish Pennant Formation Forex Falling Wedge Pattern Forex Ascending and Descending Triangle Formations Forex Symmetrical Triangle Pattern Forex Box Range Forex Cup and Handle Formation Pattern Forex Inverse Cup and Handle Pattern Forex Rising Wedge Pattern Forex Indicators -
Identifying Chart Patterns with Technical Analysis
746652745 A Fidelity Investments Webinar Series Identifying chart patterns with technical analysis BROKERAGE: TECHNICAL ANALYSIS BROKERAGE: TECHNICAL ANALYSIS Important Information Any screenshots, charts, or company trading symbols mentioned are provided for illustrative purposes only and should not be considered an offer to sell, a solicitation of an offer to buy, or a recommendation for the security. Investing involves risk, including risk of loss. Past performance is no guarantee of future results Stop loss orders do not guarantee the execution price you will receive and have additional risks that may be compounded in pe riods of market volatility. Stop loss orders could be triggered by price swings and could result in an execution well below your trigg er price. Trailing stop orders may have increased risks due to their reliance on trigger pricing, which may be compounded in periods of market volatility, as well as market data and other internal and external system factors. Trailing stop orders are held on a separat e, internal order file, place on a "not held" basis and only monitored between 9:30 AM and 4:00 PM Eastern. Technical analysis focuses on market action – specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results. -
Trade Clustering and Power Laws in Financial Markets
Theoretical Economics 15 (2020), 1365–1398 1555-7561/20201365 Trade clustering and power laws in financial markets Makoto Nirei Graduate School of Economics, University of Tokyo John Stachurski Research School of Economics, Australian National University Tsutomu Watanabe Graduate School of Economics, University of Tokyo This study provides an explanation for the emergence of power laws in asset trad- ing volume and returns. We consider a two-state model with binary actions, where traders infer other traders’ private signals regarding the value of an asset from their actions and adjust their own behavior accordingly. We prove that this leads to power laws for equilibrium volume and returns whenever the number of traders is large and the signals for asset value are sufficiently noisy. We also provide nu- merical results showing that the model reproduces observed distributions of daily stock volume and returns. Keywords. Herd behavior, trading volume, stock returns, fat tail, power law. JEL classification. G14. 1. Introduction Recently, the literature on empirical finance has converged on a broad consensus: Daily returns on equities, foreign exchange, and commodities obey a power law. This striking property of high-frequency returns has been found across both space and time through a variety of statistical procedures, from conditional likelihood methods and nonpara- metric tail decay estimation to straightforward log-log regression.1 A power law has also been found for trading volume by Gopikrishnan et al. (2000)andPlerou et al. (2001). Makoto Nirei: [email protected] John Stachurski: [email protected] Tsutomu Watanabe: [email protected] We have benefited from comments by the anonymous referees, Daisuke Oyama, and especially Koichiro Takaoka. -
Everything You Wanted to Know About Candlestick Charts Is an Unregulated Product Published by Thames Publishing Ltd
EEvveerryytthhiinngg yyoouu wwaanntteedd ttoo kknnooww aabboouutt ccaannddlleessttiicckk cchhaarrttss by Mark Rose • Read candlestick charts accurately • Spot patterns quickly and easily • Use that information to make profitable trading decisions Contents Chapter 1. What is a candlestick chart? 3 Chapter 2. Candlestick shapes: 6 Anatomy of a candle 6 Doji 7 Marubozo 8 Chapter 3. Candlestick Patterns 9 Harami (bullish / bearish) 9 Hammer / Hanging Man 11 Inverted Hammer / Shooting Star 13 Engulfing (bullish/ bearish) 14 Morning Star / Evening Star 15 Three White Soldiers / Three Black Crows 16 Piercing Line / Dark Cloud Cover 17 Chapter 4. The history of candlestick charts 18 Conclusion 20 Candlestick Cheat Sheet 22 2 Chapter 1. What is a candlestick chart? Before I start to talk about candlestick patterns, I’d like to get right back to basics on candles: what they are, what they look like, and why we use them … Drawing lines When you look at a chart of market prices, you can usually choose from line charts or candlestick charts. A line chart will take its price levels from the opening or closing prices according to the timeframe you have selected. So, if you’re looking at a one-minute line chart of closing prices, it will plot the closing price for each one-minute period – something like this … Line charts can be useful for looking at the “bigger picture” and finding long-term trends, but they simply cannot offer up the kind of information contained in a candlestick chart. Here is a one-minute candlestick chart for the same period … 3 At first glance, it might look a little confusing, but I can assure you that once you’re used to candlestick charts – you won’t look back. -
Rising Wedge, Falling Wedge (PDF)
RISING WEDGE, FALLING WEDGE Rewarding patterns…provided you stay disciplined! Introduction The wedge is a very usual chartist pattern which is made of two converging trendlines that go in the same direction, both upwards or both downwards. As such, it can be immediately distinguished from a triangle. This pattern can be found on every timeframe, from the monthly charts to intraday price action. There are two sorts of wedges that have opposite consequences: Falling wedges, mostly completed following a sharp slump and which have a bullish implication, Rising wedges, which foreshadow a violent, downwards reversal phase. Their bearish bias is all the more pronounced since they are completed after a long period of time, and following a clear uptrend. But regarding most wedges as reversal patterns are just an opinion on our own. Many authors, however, consider that following the examples of triangles, pennants and flags, wedges are essentially continuation patterns, sloped against the trend. True, you can find falling wedges just in the middle of a bullish trend, or rising wedges within a bearish trend. A perfect example of continuation rising wedge made on the Japanese Topix index in 2007 is shown on the chart below. 1 Setting up precise figures on the continuation or reversal nature of wedges is hard and useless, we think. What is of more interest is that continuation wedges tend to complete in a generally shorter lapse of time than reversal wedges. Furthermore, the debate over the reversal/continuation nature of wedges is of minor importance as these patterns are overwhelmingly broken in the "natural" sense: downwards for a rising wedge, upwards for a falling wedge. -
Classic Chart Patterns Chart Pattern Recognition a Quick Reference Guide for Traders Tools Provided by Recognia
StreetSmart Edge features Classic Chart Patterns Chart Pattern Recognition A quick reference guide for traders tools provided by Recognia. www.schwab.com/ssedge Triple Bottoms Double Bottoms Triangles Diamonds Megaphones Bullish: The Triple Bottom starts with prices Bullish: This pattern marks the reversal of a Bullish: Two converging trendlines as prices Bullish or Bearish: These patterns usually Bullish: The rare Megaphone Bottom—a.k.a. moving downward, followed by three sharp prior downtrend. The price forms two distinct reach lower/stable highs and higher lows. form over several months and volume will Broadening Pattern—can be recognized by its lows, all at about the same price level. Volume lows at roughly the same price level. Volume Volume diminishes and price swings between remain high during formation. Prices create successively higher highs and lower lows, which diminishes at each successive low and finally reflects weakening of downward pressure, an increasingly narrow range. Before the triangle higher highs and lower lows in a broadening form after a downward move. The bullish pattern bursts as the price rises above the highest high, tending to diminish as it forms, with some reaches its apex, the price breaks out above pattern, then the trading range narrows after is confirmed when, usually on the third upswing, confirming as a sign of bullish price reversal. pickup at each low and less on the second low. the upper trendline with a noticeable increase peaking highs and uptrending lows trend. The prices break above the prior high but fail to fall Bearish Counterpart: Triple Top. Finally the price breaks out above the highest in volume, confirming the bullish continuation breakout direction signals the resolution to below this level again. -
Option-Implied Term Structures
Federal Reserve Bank of New York Staff Reports Option-Implied Term Structures Erik Vogt Staff Report No. 706 December 2014 Revised January 2016 This paper presents preliminary findings and is being distributed to economists and other interested readers solely to stimulate discussion and elicit comments. The views expressed in this paper are those of the author and are not necessarily reflective of views at the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the author. Option-Implied Term Structures Erik Vogt Federal Reserve Bank of New York Staff Reports, no. 706 December 2014; revised January 2016 JEL classification: G12, G17, C58 Abstract This paper proposes a nonparametric sieve regression framework for pricing the term structure of option spanning portfolios. The framework delivers closed-form, nonparametric option pricing and hedging formulas through basis function expansions that grow with the sample size. Novel confidence intervals quantify term structure estimation uncertainty. The framework is applied to estimating the term structure of variance risk premia and finds that a short-run component dominates market excess return predictability. This finding is inconsistent with existing asset pricing models that seek to explain the variance risk premium’s predictive content. Key words: variance risk premium, term structures, options, return predictability, nonparametric regression. _________________ Vogt: Federal Reserve Bank of New York (e-mail: [email protected]). The author is especially thankful to his dissertation chair, George Tauchen, and his dissertation committee members, Tim Bollerslev, Federico Bugni, Jia Li, and Andrew Patton, for their guidance and encouragement. -
JNK [High Yield Bond ETF] Weekly Chart – 14-Period RSI Relative
JNK [High Yield Bond ETF] Weekly Chart – 14-Period RSI Relative Strength Index Signals Bullish Divergence Forming in High Yield Market Prices have defined a downtrend throughout calendar 2018, reaching the lowest level to begin Q3 (not pictured) Momentum on the other hand may be signaling support for a near-term advance, as the RSI held a higher low, remaining above the 40 level for the past three weeks as of this writing. However, gains will likely be limited by resistance at the MA Line, currently running parallel to a long-term downtrend line at the 36.40 level. If prices manage to break above resistance, with a concurrent rise above 50 RSI, that would be a signal to remain long. Alternatively, lower RSI readings indicating weak momentum would further establish that level of resistance. Longer-term, it appears a symmetrical triangle pattern may be forming on the weekly chart, implying a continuation of the recent downtrend. The downside price target for a breakaway from this pattern is $33.70 representing a 5.5% drop from current levels, coincidentally equal to the annual yield of this market. JNK [High Yield Bond ETF] Weekly Chart – 50 Week Moving Average Moving Average Line Overlays Long-term Falling Resistance Throughout Calendar 2018 Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 [High Yield Bond ETF] Daily Chart – Trading Volume w/ 50-Day MA Prices Test 2018 Lows in July, Reverse Closing Higher by End of Holiday Week High Yield Corporate Bond prices rose throughout July (not pictured) meeting resistance for a second time in as many months at the 36 level. -
Classic Patterns
CLASSIC PATTERNS TABLE OF CONTENTS Classic Patterns . Bullish Patterns: …………………………………………………………………………………………………………. 1 Ascending Continuation Triangle…………………………………………………………………….. 2 Bottom Triangle – Bottom Wedge…………………………………………………………………… 5 Continuation Diamond (Bullish) ……………………………………………………………………… 9 Continuation Wedge (Bullish) …………………………………………………………………………. 11 . Diamond Bottom…………………………………………………………………………………………….. 13 Double Bottom……………………………………………………………………………………………….. 15 Flag (Bullish) …………………………………………………………………………………………………… 19 . Head and Shoulders Bottom……………………………………………………………………………. 22 Megaphone Bottom………………………………………………………………………………………… 27 Pennant (Bullish) ……………………………………………………………………………………………. 28 Symmetrical Continuation Triangle (Bullish) …………………………………………………… 31 Triple Bottom………………………………………………………………………………………………….. 35 Upside Breakout……………………………………………………………………………………………… 39 Rounded Bottom…………………………………………………………………………………………….. 42 . Bearish Patterns…………………………………………………………………………………………………………. 45 Continuation Diamond (Bearish) …………………………………………………………………….. 46 Continuation Wedge (Bearish) ……………………………………………………………………….. 48 Descending Continuation Triangle…………………………………………………………………… 50 Diamond top…………………………………………………………………………………………………… 53 Double Top (Bearish) ……………………………………………………………………………………… 55 Downside Breakout…………………………………………………………………………………………. 60 Flag (Bearish) ………………………………………………………………………………………………….. 62 . Head and Shoulders top (Bearish) ………………………………………………………………….. 65 Megaphone Top……………………………………………………………………………………………… 71 Pennant -
7 Winning Strategies for Trading Forex
7 Winning Strategies for Trading Forex Grace Cheng 7 Winning Strategies for Trading Forex Many traders go around searching for that one perfect trading strategy that works all the time in the global FOREX (foreign exchange/currency) market. Frequently, they will complain that a strategy doesn’t work. Few people understand that successful trading of the FOREX market entails the application of the right strategy for the right market condition. Winning 7 Winning Strategies For Forex Trading covers: • Why people should be paying attention to the FOREX market, which is the world’s largest and most liquid financial market Strategies for • How understanding the structure of this market can be beneficial to the independent trader • How to overcome the odds and become a successful trader • How you can select high-probability trades with good entries and exits. Trading Forex Grace Cheng highlights seven trading strategies, each of which is to be applied in a unique way and is designed for differing market conditions. She shows how traders can use the various market conditions to their advantage by tailoring the strategy to suit each one. Real and actionable techniques This revealing book also sheds light on how the FOREX market works, how you can for profiting from the currency markets incorporate sentiment analysis into your trading, and how trading in the direction of institutional activity can give you a competitive edge in the trading arena. Grace Cheng This invaluable book is ideal for new and current traders wanting to improve their trading performance. Filled with practical advice, this book is a must-read for traders who want to know exactly how they can make money in the FOREX market. -
Recognia Overview 3 What Is Technical Analysis?
ADVANCED TECHNICAL SCREENING WITH THE NEW FIDELITY STOCK AND ETF SCREENERS Peter Ashton VP, Retail and Self-Directed Investing 784579.1.0 Disclaimer The information presented here is for educational and informational purposes only. The inclusion of any specific securities detailed is for illustrative purposes only. No information contained in this presentation is intended to constitute a recommendation by Recognia to buy, sell, or hold any stock, option, or securities. 2 Agenda • An Event Driven Approach to Technical Analysis • Major Classes of Technical Events • Short-term Patterns • Indicators and Oscillators • Classic Chart Patterns • Using the New Fidelity Stock and ETF Screeners • Technical Screening for Stocks • Technical Screening for ETFs • Using Preset Expert Screens • Q & A Recognia Overview 3 What is Technical Analysis? • Looking for patterns and relationships in price and volume history that identify attitudes of buyers and sellers • Shifts in the balance of supply and demand • To assist in making investment and trading decisions Recognia Overview 4 An Example… Prices move in trends until … Something changes to affect supply and demand 5 Head & Shoulders Bottom Prices move in trends until … Something changes to affect supply and demand Marked by patterns in price and volume history Types of Technical Events 7 Technical Event Classes • Short-term Patterns • Based on the shape and relationship of candlesticks or price bars • Indicators & Oscillators • Classic Patterns 8 Hammer HammerHammer identified Shooting Star Hammer Hanging -
Jul/Aug 2009
CHART PATTERNS SECTORS MARKET UPDATE Yahoo! Developing Energy NASDAQ 100 A Bullish Triangle Consolidating Outperforms JULY/AUGUST 2009 US$7.95 .com THE MAGAZINE FOR INSTITUTIONAL AND PROFESSIONAL TRADERS TM CANTr YOU HANDLEaders THE DRAWDOWNS? Trading systems 101 10 EIGHT STRAIGHT WEEKS Two months of steady gains? 18 WILL DIAMONDS BREAK THE BANKS? Stopping the bulls in their tracks 20 short-TERM VIEW OF GOLD Fibonacci levels may affect price 25 COILS AND LEDGES The less volatile they are… 30 YAHOO GAPS UP Will the trend reversal breakout pull Yahoo higher? 35 WHAT BIG RALLY? XLF DAILY VS. XLF HOURLY Step back and look 39 APPLE ABOVE BAND Will the rally continue? 41 MAILING LABEL Change service requested service Change 98116-4499 WA ttle, Sea XLF, DAILY. Prices may form a higher low and XLF, HOURLY. Prices gap lower from the bearish diamond pattern as 4757 California Ave. SW Ave. California 4757 begin to channel high. negative divergence begins unraveling on the MACD. Traders.com page 2 • Traders • With The Higher Volatility And 300-500 Point Dow Moves In A Day, 3 Interviews At Why More and More Investors Trust My Day Trading Profi ts Are Approximately 4 Times Higher Than In 2007 Interview Mr. Jim Kane – A Trader Using AbleSys Software www.ablesys.com .com AbleTrend to Make Their Trading Decisions Mr. Jim Kane, How long have you been trading? What is the most important factor in trading? How does I have been trading, on and off, for 20 years. Several times AbleTrend help? I got so frustrated that I switched to mutual funds, but that Risk management.