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The Williams Fractals Indicator

The Williams Fractals indicator is a technical analysis tool developed by Larry Williams, a well-known trader and author. The indicator is used to identify potential trend reversal points in price charts by identifying fractal patterns. A fractal pattern is a repeating pattern of a certain configuration of price bars that occur at different levels of trend and on different time frames. In the Williams Fractals indicator, a fractal is defined as a series of five or more bars, with the highest high in the middle and two lower highs on both sides. The indicator can be used in several different ways, such as identifying potential entry and exit points for trades, or as a filter to confirm other technical signals. It's worth noting that the Williams Fractals indicator is just one tool that traders use in their analysis, and it's not always accurate. Additionally, different traders may have different interpretations of the significance of the Williams Fractals and may use them in dif...

Fibonacci Retracement Levels

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The Fibonacci sequence is a series of numbers that are commonly used in technical analysis to identify potential levels of support and resistance in financial markets. The sequence was first introduced by Leonardo Fibonacci, an Italian mathematician, in the 13th century. The Fibonacci sequence starts with 0 and 1, and each subsequent number in the sequence is the sum of the two preceding numbers. The most commonly used numbers in technical analysis are: 0, 23.6%, 38.2%, 50%, 61.8%, and 100%. A Fibonacci retracement level of 60% refers to a specific point in a stock's price movement that is calculated based on the relationship between the price high and low of a stock over a specific period of time. Traders often use this level to help identify potential areas where the stock's price could potentially experience a rebound or reversal. In technical analysis, the Fibonacci sequence is used to identify potential levels of support and resistance in price charts. For exa...

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...