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Basic Terms

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"Bullish" and "bearish" are terms used in financial markets to describe the expected direction of price movements. Bullish: A market that is "bullish" is one in which prices are expected to rise. This is usually because market participants have a positive outlook on the economy or a particular asset, and are buying that asset with the expectation that its price will increase. Bearish: A market that is "bearish" is one in which prices are expected to fall. This is usually because market participants have a negative outlook on the economy or a particular asset, and are selling that asset with the expectation that its price will decrease. These terms are often used in reference to stock market trends, but can also be applied to other financial markets, such as foreign exchange (forex) or commodities markets. It's important to keep in mind that market sentiment can change rapidly, and what may be considered bullish or bearish one day

Price action trading

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Price action trading is a method of trading without the use of indicators, or technical analysis tools. It's based on price movement and the idea that markets are always right. Price action traders do not pay attention to fundamentals, news or other information that might affect a stock's price. They are interested only in what happens on their screen during regular market hours: whether prices move up or down, how far they go and at what speed. Price action trading is a type of technical analysis that involves analyzing and trading based solely on the price movements of an asset, without the use of technical indicators or other technical analysis tools. Proponents of price action trading believe that all the information necessary to make informed trading decisions can be obtained from the price chart itself. Price action traders look for patterns and trends in price movements to identify potential buy or sell signals. They also pay attention to key levels of suppor

Flag Chart Pattern

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A flag chart pattern is a short-term continuation pattern that is formed when the price of an asset moves in a strong directional trend, and then experiences a period of consolidation before continuing in the same direction. The pattern is created by two parallel trendlines that form a "flag" shape on the price chart. The flag pattern typically lasts for a short period, usually a few weeks, and signals a potential continuation of the prior trend. Traders will often enter a position in the direction of the prior trend when the price breaks out of the flag pattern. There are two types of flag patterns: bull flags and bear flags. Bull flags occur when the prior trend is bullish, and bear flags occur when the prior trend is bearish. Wedges and flags are both considered continuation patterns, meaning they signal that the prior trend is likely to continue after a period of consolidation. Wedges can be bullish or bearish, depending on the direction of the prior trend, an

Double top or double bottom / Tripple top or tripple bottom

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The double top and double bottom are both reversal patterns, which means they indicate a change in trend. They can be found on all time frames, but the longer the time frame you're trading, the more reliable your signal will be. The difference between a double top and a double bottom is that with a double top you'll see two peaks close together at around the same price level while with a double bottom there are two lows close together at around the same price level. This means that with a true reversal pattern (like these), there will always be at least one higher high or lower low before any new trend begins to form--and therefore it makes sense not only for predicting future price movements but also where you should place stops when entering trades based off these signals! Triple top or triple bottom Triple tops and bottoms are continuation patterns that can be used to predict future price movements. They occur when the same price level is tested three times, with

Falling and Rising wedges

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The rising wedge is a bearish chart pattern that is formed by a series of lower highs and higher lows. It indicates that the stock is making lower highs, but the pullback is not strong enough to break the trend line. This pattern can be seen on all time frames, including daily charts or even tick charts (which track individual trades). Falling wedge A falling wedge is a chart pattern that looks like an inverted V, with the lower part of the "V" pointing down and getting narrower as it approaches a trend line. A falling wedge can be identified when you see price action forming a series of lower highs and higher lows. The falling wedge pattern is considered to be bullish, so if you're looking to buy stocks or enter long positions in your portfolio, this would be one way to do it. The best time to enter a trade based on this pattern is when prices break above resistance (or down through support) after forming at least two higher highs and two lower lows within an

Triangles

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A triangle chart pattern is a price pattern that occurs when the price of an asset moves within converging trendlines, creating a triangular shape on the price chart. Triangles can be symmetrical, ascending, or descending, and can provide traders with information about potential trend reversals and continuation patterns. Symmetrical triangles occur when both trendlines converge towards a common point, indicating a period of consolidation and indecision in the market. This pattern can be a sign of a potential break in either direction, and traders will often use other forms of analysis to confirm a breakout before taking a position. Symmetrical triangles are continuation patterns, meaning they tend to form after a trend has already begun. They can also be either bullish or bearish and are characterized by converging trend lines that form an area of price congestion within the market. The pattern is aptly named because it resembles an equilateral triangle (a triangle with thr

Cup and Handle

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The cup and handle is one of the most common chart patterns you'll see, and can be used to predict future price movements. The pattern has two parts: a "cup" (which forms at the bottom of an uptrend) and a handle (which forms near the top). The cup is created by several weeks or months during which prices dip lower than they were during previous periods. The depth of this dip determines how far down into your chart you need to go before identifying it as part of your pattern; generally speaking, though, if you have less than 10 years worth of data available then start looking around where those 10 years begin--so for example if your data goes back only 5 years then look at what happened between 2008-2012 instead because that's where most people would consider their first decade ended! Once this downward trend has been established we then wait for prices to begin rising again until they reach approximately halfway up from where they started dipping down fro

Head and Shoulders

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A head and shoulders pattern is formed by two shoulders, a head, and a neckline. The pattern is confirmed when the price breaks below the neckline. The shape of this chart pattern can be deceptive because it may look as if there are three peaks instead of two shoulders and one head (which would make it a triangle). However, this difference in appearance is due to perspective; when looking at a chart from above or below--the perspective we see most often--it becomes difficult to determine where one peak ends and another begins. The head and shoulders pattern is a reversal chart pattern that is used to identify trend reversals in the financial markets. It is characterized by a peak (the "head"), followed by a higher peak (the "left shoulder"), followed by a lower peak (the "right shoulder"), and a neckline that connects the lows of the pattern. When the price of an asset breaks below the neckline, it is considered a sell signal, and the trader wo

Chart Patterns

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Chart patterns are a type of technical analysis that can be used to predict short term price movements. The patterns identify specific types of price behavior which tend to repeat over time, allowing traders to anticipate future price movements with greater accuracy. Chart patterns are not guaranteed to be effective, but they can be very useful for trading. Chart patterns are graphical representations of price and/or volume data that traders use to identify potential trades. They are formed by trend lines and/or other technical indicators and are used to identify market trends, trend reversals, and support and resistance levels. Some common chart patterns in trading include head and shoulders, triangles, and flags and pennants. Traders use chart patterns in conjunction with other technical and fundamental analysis to make informed trading decisions. When you're looking at a chart, you can see these patterns in the past price movements. They can help you predict future m

One of the most important economic indicators for the US economy is the non-farm payroll (NFP) number. The monthly market driver is another name for it.

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Non Farm Payroll, GDP and Inflation numbers play an important role in bank trading. The process of analyzing economic data helps banks make well-informed decisions on how they should execute trades. A thorough analysis of the Farm Payroll numbers, GDP figures and Inflation rates provide insight into key indicators that indicate the overall health of the economy. The Non Farm Payroll numbers are released monthly by the Bureau of Labor Statistics (BLS). This figure provides information regarding the number of jobs created or lost during that month. The Bureau of Labor statistics normally releases the NFP data on the first Friday of each month at 8:30 AM ET. The release dates can be found on the  Bureau of Labor Statistic’s website.  It is an important indicator for traders as it gives an indication as to whether or not economic growth is occurring and whether businesses are hiring or laying off workers. This can be used to determine how markets might react if a certain employ