DOUBLE BOTTOM PATTERN – Part 1: Formation

Double Bottom Pattern is a bullish reversal pattern that normally forms after an extended downtrend, which marks a shift in trend from bearish to bullish.Sometimes, this pattern is called “W pattern” because it looks like one.The Formation of Double Bottom PatternDouble Bottom Pattern contains two consecutive, distinct bottoms at about the same price level, with a moderate peak between the bottoms.This pattern forms when the price is in an existing...

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Trading Video: Combining Various Technical Analysis Techniques

In analysing market using Technical Analysis, various techniques are often combined to complement and support one another.This video of the current S&P 500 market analysis shows an example of that.Some of the analyses mentioned in the video are as follow:* 200 Moving Average & 50 Moving Average Crossover* Doji candlestick* MACD Indicator* Trendline* PSAR (Parabolic Stop and Reverse)* Double Top reversal pattern* Fibonacci Retracement(In case you need more information about the above analysis, you can click the links above to the articles...

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Stop Limit Order

Stop Limit Order is an order (buy/sell) to close a position that only executes when the current market price of an option/stock hit or passes through a predetermined price (i.e. Stop Price).Once the Stop Price is passed, the Stop Order becomes a Limit Order, and can only be executed at a specific price (i.e. Limit Price) or better.As you may have noticed, Stop Limit Order is almost similar to Stop Order. The main difference is that in Stop Limit Order, when the Stop Price is passed, the order will be converted into a Limit Order, whereas for Stop...

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Market Analysis Video: Is S&P Losing Momentum on the Upside?

While the market still seems to be higher, it also appears that it is losing momentum on the upside.This can be seen in the market’s second attempt to close above the 950 level.In addition, some of the momentum indicators are also showing negative divergences.This means that while the S&P 500 is making new highs for the move, the momentum indicators are not making new high, but instead showing lower high.The appearance of negative divergences could often be the first indication of a potential market correction.See the video for more detailed...

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