Posts

Showing posts from April, 2023

What Is Price-Action

Image
 WHAT DO YOU MEAN BY PRICE ACTION? Price action is a way of looking at how the price of something changes over time. People use it to decide when to buy or sell things, like stocks or toys . I t is based on looking at the price history of something and trying to predict what might happen next. This can be tricky because different people see different patterns in the price history. People who use price action often look at charts to help them see patterns. IS PRICE ACTION THE BEST STRATEGY Price action traders use charts to see how the price of something has changed over time. They look for patterns in the price history to try to predict what will happen next . They also pay attention to how many people are buying or selling and why . Traders watch for different patterns to happen at the same time, which can give them a signal to buy or sell. Al Brooks is an author who is very good at naming these patterns and explaining why they happen, but he admits that he might be wrong some...

HOW DOES SWING TRADING WORKS

Image
WHAT IS SWING TRADING?  Swing trading is like playing a game with money where people try to make more money by buying things and then selling them later when the price goes up. They do this in a few days or maybe a bit longer, but not for many months or years like when people save money. Some people use special signals to help them decide when to buy and sell. Swing Trading Unleashed: Powerful Methods for Market Success Swing traders often use objective rules based on mathematics to eliminate subjectivity, emotions, and labor-intensive analysis . These rules can be used to create a trading algorithm or system that provides buy-and-sell signals through technical or fundamental analysis . Alexander Elder's trading strategy uses three moving averages of closing prices to determine the direction of an instrument's price trend. It is only traded Long when the three averages are aligned in an upward direction and Short when they are moving downward. However, trading algorithms and...

Candlestick Patterns

Image
 WHAT ARE CANDLESTICK PATTERNS Candlestick patterns are graphical representations of price movements that some traders believe can predict a specific market movement. There are candlestick charts with 42 recognized patterns, which can be categorized into simple and complex patterns. However, the recognition of these patterns is subjective, and charting programs have to rely on predefined rules to match the pattern . Thomas Bulkowski has extensively studied 103 candlestick formations, providing identification guidelines, statistical analysis of their behavior, and trading tactics. The study includes statistical summaries, a glossary of relevant terms, and a visual index to make candlestick identification easier. HISTORY OF CANDLESTICK PATTERN In the 18th century , technical trading analysis was used to track rice prices, and Munehisa Homma, a rice merchant from Sakata, Japan, is credited with much of the development of candlestick charting. He traded in the Ojima Rice ma...

The Stock Market Saga

Image
 WHAT DO YOU MEAN BY STOCK MARKET? A stock market is a place where buyers and sellers come together to trade stocks or shares, which represent ownership in a business . These stocks can be publicly listed on a stock exchange or privately traded through equity crowdfunding platforms. Investors typically invest in stocks with a specific investment strategy in mind . DIMENSIONS OF THE STOCK MARKET The total market capitalization of publicly traded securities worldwide grew significantly from $2.5 trillion in 1980 to $93.7 trillion by the end of 2020 . There are currently 60 stock exchanges globally, with 16 having a market capitalization of $1 trillion or more, which account for 87% of the global market capitalization . The largest stock markets by country are the United States, Japan, and the United Kingdom, with the US having the largest market share of approximately 59.9% as of January 202 2 . HOW DID IT ALL START a brief history of the development of stock markets started wi...