VOLUME GUIDE

-
VOLUME EFFECTS ON TRADING & INVESTING
INCREASING VOLUME IS GOOD FOR TRADE?(See image-3&4)
Image-3

 Image-4

Comments

Post a Comment

Popular posts from this blog

FIBONACCI NUMBERS

-
  FIBONACCI NUMBERS There is a special ratio that can be used to describe the proportions of everything from natures smallest building blocks such as atoms to the most advanced patterns in the universe. Financial markets also conform to this Golden Ratio. A Fibonacci sequence is derived by simply adding two preceding terms. (1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.....) The important point in this is that the ratio of one to the next is roughly 1.618 and the inverse is 0.618. Everything in nature adheres to this ratio, including dividing our height from our head to our toes by the distance from our belly button to our toes we get 1,618.
Read more

CANDLE CHARTS

-
Image
  CANDLE CHARTS Learning objectives After studying this chapter the student should be able to understand: • Types of charts • The candlestick analysis • Pattern Psychology – investors’ psychology behind formation of candlestick pattern 2.1 The charts What is a chart? Charts are the working tools of technical analysts. They use charts to plot the price movements of a stock over specific time frames. It’s a graphical method of showing where stock prices have been in the past.A chart gives us a complete picture of a stock’s price history over a period of an hour, day, week, month or many years. It has an x-axis (horizontal) and a y-axis (vertical). Typically, the x-axis represents time; the y-axis represents price. By plotting a stock’s price over a period of time, we end up with a pictorial representation of any stock’s trading history.A chart can also depict the history of the volume of trading in a stock. That is, a chart can illustrate the number of shares that change hands over a...
Read more

HEAD AND SHOULDERS PATTERN

-
Image
Head and Shoulders pattern The head and shoulders pattern can be either head and shoulders, top or head and shoulders bottom. The Charts are a picture of a head and shoulders movement, which portrays three successive rallies and reactions with the second one making the highest/lowest point.  3.2.1 Head and Shoulders (Top reversal) A Head and Shoulders (Top) is a reversal pattern which occurs following an extended uptrend forms and its completion marks a trend reversal. The pattern contains three successive peaks with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline As its name implies, the head and shoulders reversal pattern is made up of a left shoulder, head, right shoulder, and neckline. Other parts playing a role in the pattern are volume, the breakout, price target and support turned resistance. Lets look at each part individually, and then ...
Read more