Descending Triangle – Learn 5 Simple Trading Strategies
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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. -
Non Member Articles List
Non Member Articles List Contents Welcome Day Trading Day Trading Basics Day Trading Introduction Understanding Day Trading Is Day Trading a Risky Endeavor Is Day Trading Right for You Is Day Trading Your Retirement Funds A Wise Decision Passing Interest or Total Commitment Why I Became A Price Action Day Trader Price Action Why Price Action Trading Price Action Trading – Is It The Holy Grail or just a Catchy Phrase Price Action Trading Fundamentals Are Important Research Proves That Price Action Trading Strategies Work Why Following The Price Action Is So Important In Day Trading A Price Action Traders Perspective On Trading With Price Action An In Depth Look At Price Action And Price Action Trading Another Traders Introduction To Price Action Analysis Can Price Action Be Used As A Legitimate Forex Trading System Can You Use Price Action To Successfully Scalp The ES Do Not Confuse Price Action Patterns With Price Action Trading Is Price Action Random Is Price Action Trading The Same As Chart Pattern Trading Follow The Footprints – Trading With Price Action Price Action Is not Just For Day Trading Learning Process Become A Better Price Action Day Trader By Studying Drop The Indicator Crutch And Learn To Day Trade Price Action How Long Does It Take To Learn To Trade Price Action How To Day Trade With Price Action How To Use Our Day Trading Videos Importance Of Chart Study To Day Traders Learn The Language Of Charts With Price Action Trading The Keys To Learning Price Action Day Trading Learn To Day Trade Price Action Strategies Directly -
Your Roadmap to 3Dprinting!
The Ultimate Guide To Price Action Trading Contents DEDICATION ......................................................................................................................................................... 4 ABOUT THE AUTHOR ........................................................................................................................................... 5 INTRODUCTION .................................................................................................................................................... 6 EVERYTHING YOU NEED TO KNOW ABOUT SUPPORT & RESISTANCE .............................................................. 8 SUPPORT & RESISTANCE........................................................................................................................................................................... 8 ROLE REVERSAL ........................................................................................................................................................................................... 9 DYNAMIC SUPPORT & RESISTANCE ................................................................................................................................................... 11 IMPULSE & CORRECTIVE MOVES ......................................................................................................................................................... 12 THE 4 STAGES OF THE MARKETS EVERY SERIOUS TRADER MUST KNOW ...................................................... 14 STAGE 1: ACCUMULATION -
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. -
Price Action Trading Day-Trading the T-Bonds Off PAT Bill Eykyn
Price Action Trading Day-Trading the T-Bonds off PAT Bill Eykyn Hh Harriman House Publishing Price Action Trading Day-Trading the T-Bonds off PAT by Bill Eykyn www.rasabourse.com HARRIMAN HOUSE LTD 43 Chapel Street Petersfield Hampshire GU32 3DY GREAT BRITAIN Tel: +44 (0)1730 233870 Fax: +44 (0)1730 233880 email: [email protected] website: www.harriman-house.com First published in Great Britain in 2003 Copyright Harriman House Ltd The right of Bill Eykyn to be identified as Author has been asserted in accordance with the Copyright, Design and Patents Act 1988. ISBN 1-8975-97xx-x British Library Cataloguing in Publication Data A CIP catalogue record for this book can be obtained from the British Library. All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publisher. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published without the prior written consent of the Publisher. DISCLAIMER No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading material in this book can be accepted by the Publisher, by the Author, or by the employer of the Author. The content of the book is not to be construed by readers as giving specific or general advice, but as an explanation of the author’s personal way of trading. -
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 -
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 -
4 Powerful Harami Candlestick Trading Strategies
4 Powerful Harami Candlestick Trading Strategies The Harami candlestick pattern is usually considered more of a secondary candlestick pattern. These are not as powerful as the formations we went over in ourCandlestick Patterns Explained article; nonetheless, they are important when reading price and volume action. For a detailed webinar on this pattern and many other powerful candlestick patterns, visit our YouTube tutorial by expert Aiman Almansoori Like other candlestick patterns, the Harami can signal that a reversal may be at hand. This article will focus on these patterns and how to trade them. What is a Harami candle When the harami candlestick pattern appears, it depicts a condition in which the market is losing its steam in the prevailing direction. The harami candlestick pattern consists of a small real body that is contained within the preceding large candles’ real body. The preceding candle tends to be very large in relation to the other candles around it. This is important. Harami What does a harami tell us about the condition of the market? During a bullish move, the harami candlestick indicator tells us that strength in the previous candle is dissipating. Bulls who have made gains in the stock may be taking a breather to either accumulate more shares or sell out of their existing positions. The large preceding candle would signify climactic conditions in that regard. In order to understand this, compare the Harami candle above against the Three White Soldiers below: The obvious difference here is follow through versus hesitation after that first bar. An Exception While the bias of the harami candlestick pattern indicates a reversal, the appearance of a harami formation in day trading can actually be quite bullish if the highs of the bar prior to the harami are broken to the upside.