This chart pattern formation is commonly used in technical analysis to predict the reversal of a downtrend. It is a bullish signal that is essentially the reverse of the regular head and shoulders chart pattern, which is a bearish indicator. The structure of the inverse head and shoulders chart...
TradingView. The calculation for the SMA is straightforward. It is simply the sum of the stock's closing prices during a time period, divided by the number of observations for that period. For example, a 20-day SMA is just the sum of the closing prices for the past 20 trading days, di...
It is also tricky to stick to a style when you are trading in real-time. Both scalping and swing trading have unique sets of pros and cons to suit traders’ sentiment. Benefits And Challenges Of Scalping Scalping is best suited for high-speed traders – they enter a short position with...
A bull trap is a false signal in financial markets. It occurs when a declining trend in a security or other asset appears to reverse and head upward but then resumes its downward trend. This temporary reversal misleads traders into thinking the asset is on the path to recovery, prompting th...
An inverted dead cat bounce is a temporary and often severe sell-off during an otherwise secular bull market. It has many of the characteristics of a dead cat bounce, but in reverse. The Bottom Line When markets drop, arelief rallymay cause investors to think that the worst is over. Howe...