The head and shoulders chart pattern is a bearish pattern generated by stocks, etfs, market indices and other instruments. Its one of the most well-known and feared chart patterns among traders and investors. As the name suggests, the pattern looks like a head and 2 shoulders on a price chart. The price of the stock
Channeling stocks are stocks that have a strong tendency to trade between a support and resistance. The distance between the support and resistance makes the stock appealing to channeling stock traders. The difference between support and resistance typically needs to be at least 10% to 15%. Preferrably, 20% or more. Generally the support and resistance
The bull flag pattern is probably the most bullish chart pattern you can trade. As the name suggests, it looks like a flag pole with a flag on the top portion of the pole. To form the pattern, the price rises substantially in a short period of time and then consolidates for generally a few
Common Mistakes to Avoid while Trading Failure to cut losses: Pride, ego, or stubbornness prevents the trader from selling. Not knowing “how much” to trade on each position: Overtrading positions can kill your account and take you out for good (risk of ruin). (Learn to position size) Average down in price: Placing good money after
