Introduction to Resistance Breakout Strategies Resistance breakout strategies are widely used in the world of trading. They are primarily used to identify potential buy points in a stock or other security. This strategy is based on the concept of resistance, a term used in technical analysis that refers to a price level that a certain…
Introduction to Dow Theory The Dow Theory is a fundamental concept in technical analysis of financial markets. It was developed by Charles H. Dow, a co-founder of Dow Jones and Company, and the first editor of The Wall Street Journal. Despite being over a century old, Dow Theory remains a cornerstone of trading theory and…
Event-Driven Market Analysis: A Comprehensive Guide Introduction to Event-Driven Market Analysis Event-driven market analysis is a method of evaluating investment opportunities by examining the potential impact of significant events on market dynamics. These events can range from macroeconomic changes, geopolitical shifts, and regulatory changes to company-specific occurrences such as earnings announcements, product launches, or management…
Using Bollinger Bands for Trading Introduction to Bollinger Bands Bollinger Bands are a technical analysis tool developed by John Bollinger in the 1980s for trading in the financial markets. They are statistical charts that can provide a relative definition of high and low prices of a market. Bollinger Bands consist of a middle band, which…
Backtesting with Historical Data Backtesting is a critical process in the world of finance and trading, providing traders, analysts, and financial institutions with a tool to evaluate their trading strategies and models. This article will delve into the concept of backtesting with historical data, its importance, and how it is done. What is Backtesting? Backtesting…
Introduction to Fibonacci Extensions in Trading Trading in financial markets involves the use of various analytical tools to predict future price movements. One of these tools is the Fibonacci extension, which is widely used by traders globally. This article will delve into the concept of Fibonacci extensions in trading, how they are calculated, and their…
Pivot Point Trading Strategies Introduction to Pivot Point Trading Strategies Pivot point trading strategies are popular tools used by traders to identify key price levels that can act as potential turning points in the market. They are calculated using the high, low, and closing prices from the previous trading session. These pivot points can then…
Introduction to Fibonacci Trading Fibonacci trading is a technique that traders use to predict potential support and resistance levels in the market. It’s based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones, starting from 0 and 1. The sequence goes as follows: 0, 1,…
Introduction to Elliott Wave Forecasting Models Elliott Wave Theory is a technical analysis method that traders use to analyze market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Named after its creator Ralph Nelson Elliott, this method was developed in the late 1930s….
Introduction to Risk Management and Technical Analysis Risk management and technical analysis are two pivotal concepts in the world of finance and trading. Risk management involves identifying, assessing, and prioritizing uncertainties in investment decisions, and taking coordinated and economical actions to minimize, monitor, and control the probability or impact of unfortunate events. On the other…