Double Bottom Formation

Double Bottom Formation on stock charts indicates that the trend of that stock is getting ready for a major reversal. Double bottoms, in contrary to double tops, are always considered bullish. When this pattern appears on a chart, a Forex, Stock, Commodity or an Index, it signals a major change of the trend of that particular security from bearish [...]

Support and Resistance

You may have heard the expression “The stock is trading at support levels.” Or “The stock is approaching resistance.” You’ve probably wondered how do you find these support and resistance levels and how can you use these levels to help you in your quest for trading or investing success. So what is support? Different definitions can [...]

Technical Analysis Explained

What is technical analysis? It is a term often misunderstood by many. I have heard arguments that go as far as calling technical analysis as a mystical art which compares to tea leaf reading. Nothing annoys me more, honestly then when I see the two being compared side by side. With that said, let me explain in a very simple way what Technical [...]

Technical Analysis – ABC Down Formation

ABC Down Formation is a technical analysis formation used not only to predict entry and exit points on a trade, but also to determine potential targets. Knowing stock target helps us determine risk/reward ratio. One can not determine risk/reward ratio without knowing, or having some idea where the targets are. We could know the risk based on where [...]