Whats is Head and Shoulders?
Head and Shoulders is a reversal pattern that happens after an Upternd, H&S has three peaks two shoulders (left and right shoulders which are low peaks and almost equal) and head (highest peak which is in the middle), the completion of the pattern gives us the signal of a Reversal. As the pattern forms we have pullbacks, those pullbacks will be forming a Neckline (horizontal support line).
Descending Triangle
What is Descending Triangle?
Descending Triangle is a continuation Pattern in a bear run, just like Ascending Triangle it is a pretty common pattern and visible to everyone. It also can be found as a reversal pattern at the top but it works best and much stronger pattern as a continuation of a downward trend. Let's look at below how it works and forms the pattern.
Descending Triangle is a continuation Pattern in a bear run, just like Ascending Triangle it is a pretty common pattern and visible to everyone. It also can be found as a reversal pattern at the top but it works best and much stronger pattern as a continuation of a downward trend. Let's look at below how it works and forms the pattern.
Ascending Triangle
What is an Ascending Triangle?
Ascending Triangle is a continuation Pattern of a bull run, its a common pattern and very easy to spot. This pattern can be a reversal pattern and you can spot them at the bottom of the price but it wont be as strong as when it's in a continuing uptrend. Lets look at this quick image below and see how it actually works.
Ascending Triangle is a continuation Pattern of a bull run, its a common pattern and very easy to spot. This pattern can be a reversal pattern and you can spot them at the bottom of the price but it wont be as strong as when it's in a continuing uptrend. Lets look at this quick image below and see how it actually works.
Support & Resistance
What is Support & Resistance?
Support can be found in many places on the chart it all depends how far back do you want to go. To me the most recent support matters the most, but to a lot of traders they can go as far back as 5 to 10 years. But for much quicker plays we can look at most recent actions. Now what is support? It's when price hits a point of resistance (demand) and retraces back to the point of supply which will be our support. Usually by support area you will see increase of buyers and decrease of seller, lets look at this GS - Goldman Sachs Group Inc. (NYSE) chart below.
Support can be found in many places on the chart it all depends how far back do you want to go. To me the most recent support matters the most, but to a lot of traders they can go as far back as 5 to 10 years. But for much quicker plays we can look at most recent actions. Now what is support? It's when price hits a point of resistance (demand) and retraces back to the point of supply which will be our support. Usually by support area you will see increase of buyers and decrease of seller, lets look at this GS - Goldman Sachs Group Inc. (NYSE) chart below.
What is Vix?
Vix is the ticker for CBOE Volatility Index, what it does is measures volatility for S&P 500 Index options. Vix measures Options Flow for the current month and the next month, for example if Vix is currently at 20 mark then SPX has a 68% chance to move Higher or Lower by 20%. A lot of times Vix is used as Fear and Greed index but no many realize that Vix tells us how the options market is flowing for the month.
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