29 February 2024

Wedges

Wedges

Wedges, like trend channels, are essential for understanding market developments and can trigger both buy and sell signals in the same way as trend channels do. Wedges also resemble pennants – read about pennants here. In the chart below, you can see the price development of Yahoo stock over the…
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Support and resistance levels

Support and resistance levels

Support and resistance levels are fundamental concepts in trading, applicable to both long-term investments and short-term day trading. Both levels represent points on the chart where the price tends to halt and, in some cases, reverse direction. Therefore, many traders use these as potential points for buying or selling, especially…
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Trend Channels

Trend Channels

Trend channels are valuable tools for understanding where the market is heading. Often, the market follows these channels, providing a framework to better organize and understand sometimes overwhelming market movements. An upward trend is defined by the chart showing higher and higher peaks at each turn, as well as higher…
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Head and Shoulders pattern

Head and Shoulders pattern

One of the most well-known patterns in technical analysis is called the “head and shoulders” formation. This pattern indicates a market reversal and is one of the most reliable signals in technical trading. At the same time, the pattern is easy to understand, even for beginners. Already in the classic…
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Round Numbers

Round Numbers

Round numbers play a significant role in analyzing all types of markets. Just like resistance and support levels, round numbers are often points where the price may halt. Examples of this can be found in the markets every single day. Many financial markets pause at round price levels, such as…
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The Fibonacci Sequence

The Fibonacci Sequence

Fibonacci numbers are a widely used – and highly debated – tool for predicting price movements in financial markets. Day traders frequently employ them, though never as the sole indicator. Typically, Fibonacci tools should be combined with other elements of technical analysis to achieve favorable results. This approach ensures a…
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Pennant Pattern

Pennant Pattern

A pennant is a continuation pattern within an existing trend. It is a very powerful pattern that allows for setting a tight stop-loss, thereby offering a good risk-reward ratio. How does a pennant form? A pennant occurs after a strong trend, followed by a pause where a consolidation period emerges.…
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How to find the best stocks for day trading

How to find the best stocks for day trading

In the fast-paced world of financial markets, day trading stands out as a strategy driven by precision, discipline, and a keen understanding of market dynamics. At the heart of this approach lies the quest to identify the best stocks that offer significant profit potential within a short time frame. Finding…
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How to find the best broker for trading forex

How to find the best broker for trading forex

Getting into the world of forex trading can be as exciting as it is daunting, with one of the most critical decisions being the choice of a broker. This choice can significantly influence your trading experience, your access to the markets, and, ultimately, your success in forex trading. Selecting the…
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How to use Myfxbook to track your day trading

How to use Myfxbook to track your day trading

In the fast-paced world of day trading, staying informed and organized is not just an advantage—it’s a necessity. With the myriad of tools available, it can be overwhelming to choose the right one to track your trading activities effectively. Enter Myfxbook, a powerful and user-friendly platform that stands out in…
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