Market types and the Tools of the Trade V
Channel contractions Channel contractions are pattern whose tops and bottoms get approaching each other. These figures, called flags, pennants, wedges or triangles, appear out of hesitation. All those patterns represent the same corrective phase, after an impulsive leg. Many books about trading do distinguish between shapes or time frames, though. The key point to…
Market types and the Tools of the Trade IV
On Market types and the Tools of the Trade IV, we will discuss Levels, breakouts, support and resistance. The fight of beliefs I’ll tell you here my personal view about levels, support, resistance and breakouts. People trade their beliefs about the markets. Price is constantly moving in a struggle of two sides, while a third…
Market types and the Tools of the Trade III
On Market types and the Tools of the Trade III, we will talk about Sideways markets. Sideways channels A sideways channel happens when the price oscillates between two levels that seldom move or move up or down very slowly. If the channel is wide enough, it may offer trading opportunities. although usually, volatility is higher, therefore…
Market Types and the Tools of the Trade II
On Market Types and the Tools of the Trade II, we will talk about corrective waves Phases of a bearish trend Corrective markets In stock and futures markets, there is a marked asymmetry between bull and bear markets. Bulls being orderly and, usually, less volatile, except at its beginning, while its ending depicts exuberance and extremely…
Market types and the tools of the Trade I
In Market types and the tools of the Trade, we will analyse the market anatomy. Introduction On their pursuit for a profitable system or strategy, traders look at past behaviours as a forward indicator of prices. Indeed, if price movement is an objective manifestation of the average trader sentiment, then wherever in the future the…