What Are Failure Swings & How To Trade Them

Failure Swings

In his book, J. Welles Wilder, New Concepts in Technical Trading Systems describes strong market reversals. He used the RSI (relative strength index) to measure these swings. He then gave these sharp price movement names of failure swings. There are plenty of indicators like the MACD, CCI, RSI, and the Stochastics that are plotted separately on the chart. They all give failure swings. However, almost all technical indicators show failure swings in one form or the other. What are Failure Swings? According to J. Welles, failure swings mostly occur in momentum oscillators because they show price movements in a specific …READ MORE

What Is The Triple Top Pattern & How To Trade With It

Triple Top Pattern

The Triple Top pattern is a type of technical analysis that is used to try and predict possible market reversals. What is the Triple Top pattern? Consisting of three tops or peaks, the Triple Top identifies downward momentum of the price and surface in an uptrend. The formation of the Triple Top happens when the price creates three peaks at an equal level. These peaks form resistance levels, and the low points between these peaks are the swing lows. After the appearance of the third peak, the Triple Top pattern completes. For example, assume the price of EUR/USD makes its …READ MORE

What Is The Triple Bottom Pattern & How To Trade With It

Triple Bottom Pattern

A Triple Top pattern is a form of technical analysis that is used for helping to anticipate bullish market reversals. What is the Triple Bottom pattern? The Triple Bottom compromises three bottoms or troughs in a downtrend and marks the change in trend from bearish to bullish. The formation of the Triple Bottom takes place when the price creates three troughs at an equal level. These troughs form a support level. The occurrence of the third trough confirms the Triple Bottom pattern. To identify the pattern. Traders need to remember these points: There prevailing trend of the market should be …READ MORE

What Is The Flag Chart Pattern & How To Trade With It

Flag Chart Pattern

The Flag pattern is used as an entry point for the continuation of a prevailing trend. The Flag is a price pattern that moves from a shorter timeframe to counter the price trend in a longer timeframe. The pattern got its name “Flag,” as its structure looks similar to the Flag on a flagpole. What is the Flag chart pattern? The flag pattern identifies the possible continuation of a preceding trend from a previous point against the same direction. Generally, Flags are areas of tight consolidation in price action. It shows that a counter-trend move after a sharp price fluctuation. …READ MORE

What Is The Double Top Candlestick Pattern & How To Trade With It

Double Top Pattern

The Double Top is a bearish reversal pattern that appears after the price reaches a high two times, and there is a decline between them. What is the Double Top pattern? The Double Top is a standard pattern with two highs and one low to form a reversal pattern. The central part of the pattern is the dropping of the price between two highs. The two highs are known as tops and show a resistance line. In comparison, the decline in price shows a support level. After the second top, the price rally downwards, and this creates a neckline between …READ MORE

What Are Cycle Indicators & How To Trade With Them

Cycle Indicators

The cycle indicators are a form of oscillating indicators that analyse market cycles. The market cycles are form of price movements. What are Cycle indicators? According to the theory, financial markets move in cycles from bearish to bullish or back again to bearish. These market cycles often repeat, and in this way, they indicate price patterns. The theory also defines that the market moves in small cycles within the larger ones on shorter timeframes. Similarly, on longer timeframes, the larger cycles contain smaller cycles. This assumption makes cycle indicators more worthy because there is no way that a trader can …READ MORE

What Is The Chaikin Money Flow Indicator & How To Trade With It

Chaikin Money Flow

Marc Chaikin developed Chaikin Money Flow or CMF. It measures the volume-weighted average of accumulation and distribution over a certain period. What is the Chaikin Money Flow? The main idea behind the CMF is that the closer the closing price is to the high, the more accumulation occurs. On the other hand, the closer the closing price is to the low, the more distribution occurs. If the price action consistently closes above the candlestick or bar’s midpoint, the CMF is positive. Whereas, if the price closes below the midpoint, the CMF is negative. The formula for the Chaikin Money Flow …READ MORE

What Are Candlestick Patterns & How To Trade With Them

Candlestick Patterns

Candlestick patterns are one of the most commonly used trading patterns. A Japanese man Homa, in the 1770s, discovered the candlestick patterns while studying the supply and demand of rice prices. What are Candlestick patterns? The candlestick patterns represent price moves by measuring the market sentiment. The pattern has multiple candles of different colors and sizes, with each candle or multiple candles signifying a certain pattern. Traditionally, a bullish candle is blue or white, and the bearish candle is red or black, depending on the chart setup. Like bars, a single candle has a real body, containing a price high, …READ MORE

What Do You Need To Know About Trading In Bitcoin At A Digital Platform?

What Do You Need To Know About Trading In Bitcoin At A Digital Platform

In the financial system, bitcoins and other currencies have potential benefits to traders and investors. But, there are chances of theft and illegal activities at the digital platform. All the things the traders should need to know are required to be correct and genuine. Many trading conversations are conducted at the platform with information about the pros and cons of coins. Besides the information, the future of the currencies is controversial for the traders. For a clear view, all the correct and genuine information is provided to the people. The joining of the transactions will offer plenty of benefits to …READ MORE