Two Ways to Purchase Stock Buying at Support You can purchase when the stock bounces off the support and is heading in an upward direction. Support buying is typically healthier than resistance buying in terms ... Read More …
What is Overhead Supply? It is an area of resistance where there is more supply than you think. Example: If a stock is trading at $50 per share and has done a lot of trading ... Read More …
Most people on TV have an agenda to some degree. For example, if someone on TV says a stock is going to tank, they may be looking for their audience to sell the stock so ... Read More …
What are sympathy plays? Something that is played on the news headline based on the initial news coverage. Example: If Google releases completely new algorithms that other search engines can use, it will benefit other ... Read More …
What are Trading Rules? They are made to keep you disciplined and away from trouble. You should come up with your own rules and set of expectations for when you trade. Rules apply more toward ... Read More …
Triple Top Pattern It is a reversal pattern. It forms from a previous uptrend. You need to be aware that this pattern has the potential to be multiple patterns, and you cannot be sure that ... Read More …
Triple Bottom Reversal Pattern Important: This pattern should be treated as a neutral pattern until it reaches the third bottom point. Before that moment it could form as other patterns such as a double top, ... Read More …
Cup and Handle Pattern It is a continuation pattern. Discovered in 1988 by William O’Neil. I recommend his book How to Make Money in Stocks. You need a previous trend in order to have a continuation ... Read More …
The Ascending Triangle It resembles accumulation. It is a bullish pattern. It doesn’t have to happen on an uptrend, but it is very helpful when it does. The top of the triangle is fairly straight and ... Read More …
Account Balance Amounts There are a few different levels of account balances when it comes to trading. It can be helpful to have three separate accounts: one for an IRA, one for trading/day trading, and ... Read More …