Your Gateway to Financial Literacy
Introduction to Visible Supply Understanding the concept of visible supply is essential in markets dealing with commodities or securities where goods are not consumed instantly upon purchase but can be stored, transported, or traded as futures contracts. Visible supply refers to the amount of a good or commodity that is
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Introduction to the Upside Tasuki Gap The term “Tasuki Gap” is derived from Japanese technical analysis, representing a three-candle pattern that signals an uptrend’s continuation following a significant price increase. This powerful indicator consists of three candlesticks: (1) the first large white/green candle representing the initial upward movement, (2) a
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Definition of a Triple Top A triple top is a bearish chart pattern that signifies resistance and potential reversal or further downside when the price moves below swing lows following three consecutive peaks at nearly identical levels. The triple top, which may occur on various timeframes, requires confirmation after an
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What Is a Trend in Finance? In finance, a trend refers to the overall direction of an asset’s or market’s price movement, whether it is upward (uptrend) or downward (downtrend). Uptrends are characterized by successively higher swing highs and swing lows, while downtrends exhibit lower swing lows and swing highs.
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What is a Support Level? Support, also known as a support level, refers to a significant price point that an asset tends not to fall below for an extended period. This concept originates from buyers’ collective actions to prevent the price from dropping further in the market. In technical analysis,
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Introduction to the QStick Indicator The Qstick Indicator, also known as the Quick Stick or Trend Momentum Indicator, is a technical analysis tool developed by Tushar Chande with an aim to identify and measure trends within financial markets. This powerful indicator calculates a moving average of the difference between the
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What are Outside Days? Outside days are an intriguing and powerful two-day price pattern that can provide significant insights for swing traders and market technicians alike. These days, as their name suggests, are characterized by a security’s price reaching beyond the highs and lows of the previous day. The term
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Introduction to Kicker Pattern The kicker pattern, an essential yet lesser-known candlestick formation, offers insightful clues about a potential shift in market dynamics. This two-bar pattern signals a strong reversal in price direction following a significant change in investor sentiment. In the ever-evolving financial markets, the kicker pattern acts as
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Introduction to the Ichimoku Kinko Hyo Indicator The Ichimoku Kinko Hyo indicator, often referred to as simply “Ichimoku,” is an essential tool used by technical traders and investors for determining market trends and identifying potential support and resistance levels. Developed in Japan, Ichimoku translates to “one look” in Japanese, as
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What Is a Buyer’s Market? A buyer’s market is an economic situation where buyers have the upper hand during transactions due to increased supply or decreased demand. This section provides insights into what defines a buyer’s market and its implications for price negotiations. Definition and Key Takeaways: A buyer’s market
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Introduction to Bull Markets A bull market is a significant, prolonged trend in financial markets where the price of securities, particularly stocks, experiences continuous increases in value. The term “bull” refers to the aggressive charge of a charging bull and symbolizes upward price movements. Conversely, a bear market is characterized
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Introduction to Breadth Indicators Breadth indicators play a vital role in understanding the intricacies of stock market trends by measuring the participation level and directional movement of individual securities in relation to broader indices. In financial markets, breadth indicators are mathematical tools designed to evaluate the number of advancing or
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Introduction to the Bandwagon Effect The bandwagon effect, also referred to as herd mentality or collective behavior, is a powerful psychological phenomenon that influences individuals to follow the actions of a group, disregarding their own beliefs and judgments. This effect can significantly impact politics, consumer behavior, and investment decisions. Understanding
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Understanding the Basics of the Advance/Decline Line (A/D Line) The advance-decline line (A/D line) is a vital technical indicator that displays the net difference between the number of advancing and declining stocks on a daily basis within an exchange or an index. It provides traders with valuable information about market
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