Learn about investing, trading, retirement, banking, personal finance and more.
The Falling Wedge pattern forms when prices appear to spiral downward, with lower lows (1, 3, 5) and lower highs (2, 4) creating two down-sloping trend lines that intersect to form a triangle. Unlike Descending Triangle patterns, however, both lines need to have a distinct downward slope, with the top line having a steeper decline.
This pattern is commonly associated with directionless markets, since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout).
If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with the DOWN trend. Consider selling a pair short or buying a put option at the downward breakout price level. To identify an exit, compute the target rice by subtracting the pattern height from the breakout level. The pattern height is the difference between the highest high and the lowest low within the pattern, and the breakout level is the lowest point within the triangle.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
The primary benchmark for short-term interbank loans around the world is the LIBOR, and Euro Libor is denominated in Euros
Balanced funds offer a well-diversified investment that includes relatively equal exposure to stocks and bonds
Markets have been around for much longer than most people think. The Tulip bubble happened in the 1500's!
In reality, only a small portion of venture capital is directed at seed money for startups. The rest is directed at...
If a business owner is a silent partner, and not an employee, they do not need to be included in the SEP IRA
Whether or not you need a trust depends on several factors, some of which include: your level of assets, the...
Arbitrage can take many forms in trading: buying a security in one market and selling it in another for a better price…
Risk can be defined as exposure to the possibility of loss of an asset. Risk might be used to denote the potential of loss
AAA/Aaa is the highest rating a bond issue or company can get. In the aftermath of the 2008 financial crisis and...
Market indexes attempt to give an overall picture of the market by tracking the performance of a sample of stocks