102 Elliott Wave and Zigzag (5-3-5)
A single zigzag in a bull market is a simple three-wave declining pattern labeled A-B-C. The subwave sequence is 5-3-5, and the top of wave B is noticeably lower than the start of wave A, as illustrated in Figures 1-22 and 1-23.
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In a ... Views: 906
160 Elliott Wave Principle and Depth of Corrective Waves
No market approach other than the Wave Principle gives a satisfactory answer to the question, "How far down can a bear market be expected to go?" The primary guideline is that corrections, especially when they themselves are fourth ... Views: 736
389 Wave Personality
The idea of wave personality is a substantial expansion of the Wave Principle. It has the advantage of bringing human behavior more personally into the equation.
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94 Structure of the Federal Reserve System
About the Federal Reserve System
The Federal Reserve System is the central bank of the United States.
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It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public ... Views: 860
Avoid emotional trading
Trading psychology describes how a trader handles generating gains and handling losses. It represents their ability to deal with risks and not deviate from their trading plan. The emotional aspects of investing will attempt to dictate your every transaction, and your ... Views: 522
Berkshire Hathaway
Warren Buffett became the controlling shareholder of Berkshire Hathaway in the mid-1960s and began a progressive strategy of diverting cash flows from the core business into other investments. As of May 2023, Berkshire Hathaway had a market capitalization of over $715 ... Views: 357
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Beta and Passive Risk Management
Another risk measure oriented to behavioral tendencies is a drawdown, which refers to any period during which an asset's return is negative relative to a previous high mark. In measuring drawdown, we attempt to address three things:
The magnitude of each ... Views: 481
Bump and Run Reversal
The pattern was originally named the Bump and Run Formation, or BARF. Bulkowski decided that Wall Street was not ready for such an acronym and changed the name to Bump and Run Reversal. Bulkowski identified three main phases to the pattern: lead-in, bump, and run. We will ... Views: 796
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Chandelier Exit
The Chandelier Exit is basically a volatility-based system that identifies outsized price movements. Le Beau defined volatility by using the Average True Range, which was developed by Welles Wilder, creator of RSI and the Average Directional Index. ATR uses the prior close, ... Views: 960
Common Retracements
The Fibonacci Retracements Tool at StockCharts shows four common retracements: 23.6%, 38.2%, 50%, and 61.8%. From the Fibonacci section above, it is clear that 23.6%, 38.2%, and 61.8% stem from ratios found within the Fibonacci sequence. The 50% retracement is not based on a ... Views: 605
Common trading mistakes: part two
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Controlling emotions that cloud your judgment
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Controlling emotions that hold you back
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How to become a successful trader
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Customer satisfaction
Despite all the effort and money poured into CX tools by companies, customer satisfaction continues to decline. In the United States, it is now at its lowest level in nearly two decades, per data from the American Customer Satisfaction Index (ACSI). Consumer sentiment is ... Views: 455
Definitions of diversification and asset allocation strategies
Although the assumptions of modern portfolio theory are likely somewhat flawed, asset allocation using MPT is still a proven method to reduce volatility in an investment portfolio. A simple example using separate investors can ... Views: 546
Develop your Trading Plan
Sometimes there is a misconception that you need highly evolved market knowledge and years of trading experience to be successful. However, we often see that the more information we have the more difficult it is to create a clear plan. More information tends to ... Views: 619
Double Bottom Reversal
The Double Bottom Reversal is a bullish reversal pattern typically found on bar charts, line charts, and candlestick charts. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between.
Note that a ... Views: 653
Existential-humanistic
Psychologist Abraham Maslow in 1943 posited that humans have a hierarchy of needs, and it makes sense to fulfill the basic needs first (food, water etc.) before higher-order needs can be met.[103]
Humanistic psychology, which has been influenced by existentialism and ... Views: 402
Falling Wedge
The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no ... Views: 1179
Head and Shoulders reversal
The pattern contains three successive peaks, with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline.
As its name implies, the ... Views: 651
Head and Shoulders Top
A Head and Shoulders reversal pattern forms after an uptrend, and its completion marks a trend reversal. The pattern contains three successive peaks, with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The ... Views: 862
How Should We Celebrate the Anniversary of the Birth of Prophet Muhammad (PBUH)?
For Muslims, Prophet Muhammad (PBUH) is the best creature ever. He is the last messenger and prophet sent by the Almighty Allah to guide people from the darkness of ignorance to light of Divine guidance. At ... Views: 366
Irrational Exuberance part two
Amplification Mechanisms and Forex trading Signals
As if the structural factors listed above were not enough, Shiller argues that amplification mechanisms intensified the effects. First, there was a change in investor attitudes toward stocks. By the late 1990s ... Views: 818
Leading Diagonal
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Market value
A company's market value is a good indicator of investors' perceptions about its business prospects. The range of market values in the market is enormous, from less than a million dollars for the smallest companies to hundreds of billions for the largest and most successful ... Views: 790
Moving Average Envelopes Conclusions
Moving Average Envelopes are percentage-based envelopes set above and below a moving average. The moving average, which forms the base for this indicator, can be a simple or exponential moving average. Each envelope is then set the same percentage above or ... Views: 708
Narrative Economics
stories affect economics, look no further than the example of Bitcoin.
When the idea of Bitcoin was first introduced online in 2008 by a mysterious person under the name Satoshi Nakamoto, hype quickly grew around it. It was an entirely new system of money that had the ... Views: 522
Noise Trader
Noise trading refers to a style of investing in which decisions to buy and sell are made without the use of fundamental data specific to the company that issued the securities that are being bought or sold. Noise traders generally make short-term trades to profit from various ... Views: 328
Nvidia Strategy
Nvidia Strategy and Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
It is a software and fabless company that designs graphics processing units, application programming interfaces for data science ... Views: 207
Personality
Personality refers to the enduring characteristics and behavior that comprise a person’s unique adjustment to life, including major traits, interests, drives, values, self-concept, abilities, and emotional patterns. Various theories explain the structure and development of ... Views: 507
Pivots Points and support and resistance levels
Pivots Points are significant levels chartists can use to determine directional movement and potential support/resistance levels. Pivot Points use the prior period's high, low and close to estimate future support and resistance levels. In this ... Views: 821
Psychological Traps
1. Anchoring Trap
First, there is the so-called anchoring trap, which refers to an over-reliance on what one originally thinks. Imagine betting on a boxing match and choosing the fighter purely by who has thrown the most punches in their last five fights. You may come out ... Views: 585
Psychology Around the World
In the dark days of China's Cultural Revolution, the government closed the nation's psychology departments and research institutes. It banished psychologists to remote areas of the countryside to work the land. It dismissed psychology itself as a bourgeois ... Views: 395
Rising Wedge and forex signals
The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely ... Views: 792
S&P 500 Inclusion Criteria
The S&P 500 was created in 1957 and is one of the most widely quoted stock market indexes. S&P 500 stocks represent the largest publicly-traded companies in the U.S. The S&P 500 focuses on the U.S. market's large-cap sector.
An S&P 500 company must meet a broad set ... Views: 551
Introduction
Choosing the right stock trading education platform can be challenging, with so many options available. Whether you're a beginner or an experienced trader looking to refine your strategies, selecting the right platform is crucial. In this article, we compare ... Views: 15
Symmetrical Triangle
The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the ... Views: 762
Tax-loss harvesting a strategy
Tax-loss harvesting is a strategy that can help investors minimize any taxes they may owe on capital gains or their regular income.
Sometimes an investment that has lost value can still help your portfolio; if an investment drops you can deduct that loss, which ... Views: 781
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The Broad Concept - Elliott Wave Principle
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The Fibonacci Sequence
In Liber Abaci, a problem is posed that gives rise to the sequence of numbers 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and so on to infinity, known today as the Fibonacci sequence. The problem is this:
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The Rounding Bottom
The Rounding Bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom, and represents a long consolidation period that turns from a bearish bias to a bullish bias.
Prior Trend: In order to be a reversal ... Views: 1254
The Surprising Power of Small Habits
Category: Growth, Habits, and Peak Performance
Description: We live in a world of competition. The margin between good and great is slimmer than ever before. Small habits can unlock the improvements you need to get the results you want.
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The World Meteorological Organization
The World Meteorological Organization (WMO) is a specialized agency of the United Nations responsible for promoting international cooperation on atmospheric science, climatology, hydrology and geophysics.
What we do
As a specialized agency of the ... Views: 383
This is Jesus, Son of Mary, the Word of Truth
Festivals and celebrations are considered one of the distinctive characteristics and key features of societies around the world as they constitute a major part of cultural fabric for people. This means that there is hardly any human society ... Views: 385
Top Companies by Market Cap
By market capitalization, as of January 2022, Apple (AAPL) is the biggest company at $2.652 trillion, followed by Microsoft (MSFT) at $2.222 trillion, Google (GOOGL) at $1.725 trillion, Amazon.com (AMZN) at $1.446 trillion, Tesla (TSLA) at $947.92 billion, and Meta ... Views: 409