The Iron Butterfly is an options trading strategy that combines two popular strategies, the short straddle, and the long strangle. It is a neutral strategy designed to profit from low volatility in the underlying asset. The strategy involves selling two at-the-money (ATM) options and buying one out-of-the-money (OTM) option and one in-the-money (ITM) option of …
Candlestick continuation patterns are chart patterns that indicate a temporary pause in an ongoing trend, suggesting that the prevailing trend is likely to continue after the pattern completes. These patterns help traders identify potential opportunities to enter trades in the direction of the existing trend. Here are some common candlestick continuation patterns: As with any …
Candlestick patterns are widely used by traders to identify potential trend reversals and make trading decisions. Here are some essential candlestick reversal patterns: Remember that candlestick patterns are not foolproof and should be used in conjunction with other technical indicators and analysis tools for more reliable trading decisions. Always practice risk management and use stop-loss …
Title: Harmonic Patterns: Unveiling the Beauty of Fibonacci Ratios in Financial Markets Introduction: Harmonic patterns are a fascinating and powerful approach to technical analysis that utilizes geometric patterns formed by Fibonacci retracement and extension levels to predict potential market turning points. Discovered and popularized by H.M. Gartley in the early 1930s, harmonic patterns have evolved …
Introduction: The Elliott Wave Theory, developed by Ralph Nelson Elliott in the 1930s, is a prominent technical analysis tool used by traders and investors to analyze financial market cycles and forecast future price movements. This theory proposes that market prices move in repetitive patterns, consisting of alternating waves that represent the collective psychology of market …
●Understanding the power to compounding early in the life is very important.●It is very important to have independent thinking with integrity.●One should have their own thought process.●Make investment decision based on your own investment decision.●Making money is more enjoyable than actually spending it.●One should maintain individual frugality.●You don’t need a 180 I.Q. in the stock …
This strategy is known as the Moving Average Crossover strategy and uses two moving averages – a short-term moving average and a long-term moving average. Here’s how the strategy works:
How does equity prices move? As an equity investor you must understand two very important aspects in equity valuation ie qualitative aspect and quantitative aspect. By quantitative aspect we mean putting numbers like earnings, sales, earnings ratios, PE ratio, growth rate of earnings, sales etc. By qualitative aspect we mean the quality of earnings ie …
If I have to point out a single reason why majority of traders are losers, It would be lack of following trade management and risk management. Trade Management and Risk Management is the most important technique to be used in active trading but actually it is least practiced. Lack of discipline can cause you to wipe …
