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What is the Wedge Pattern? One of the pillars of technical analysis theory is the idea that market mentality is mob-like, that price movements will often repeat itself and that those movements are identifiable and predictable. One such is the Wedge Pattern. The Wedge Pattern forms in a trending market and often signals continuation and not just any continuation, but a long-term continuation that will lead to payouts. What is a Wedge Pattern? A Wedge Pattern is a form of triangle that forms within a trend, like a flag or pennant pattern…

Becoming a trader is easy. Open an account with a broker of your choice, and dive right into the exciting world of financial markets. Becoming a good trader, capable of making stable gains and relying on trading as his primary source of income, however, is much harder. What is the difference between the two and what qualities do you need to develop in order to call yourself a great trader? Jack Schwager, the author of “The Market Wizards” book series, seems to know a lot about successful traders, their career paths…

The relative strength index or the RSI is a momentum oscillator used to measure the velocity and magnitude of directional price movements.  The indicator provides will help you determine overbought/oversold levels, as well as provide buy and sell signals. The RSI indicator with standard settings The RSI is basically a single line that fluctuates in the corridor between 0 and 100. The closer this line gets to the zero mark the higher are the chances for the asset to be oversold. When the RSI gets close to 100, the asset is likely to be…

However, there are two tools that I still use, because in some circumstances they are very helpful. Before we decide to open an order, we seek additional confirmation that our analysis of the situation is correct. When the conclusions resulting from the observation of the price behavior additionally are supported by correct interpretation of what the indicator shows us – we have in some sense a confluence allowing us to make successful trading decision. The indicators with which I did not part with and they accompany me on a daily…