DOUBLE BOTTOM PATTERN � Part 1: Formation

Double Bottom Pattern is a bullish reversal pattern that normally forms after an extended downtrend, which marks a shift in trend from bearish to bullish.Sometimes, this pattern is called �W pattern� because it looks like one.The Formation of Double Bottom PatternDouble Bottom Pattern contains two consecutive, distinct bottoms at about the same price level, with a moderate peak between the bottoms.This pattern forms when the price is in an existing downtrend. It occurs when the price increases to a support level (forming the 1st bottom), then increase (forming the peak), and then return to the support level again (forming the 2nd bottom) before...

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Trading Video: Combining Various Technical Analysis Techniques

In analysing market using Technical Analysis, various techniques are often combined to complement and support one another.This video of the current S&P 500 market analysis shows an example of that.Some of the analyses mentioned in the video are as follow:* 200 Moving Average & 50 Moving Average Crossover* Doji candlestick* MACD Indicator* Trendline* PSAR (Parabolic Stop and Reverse)* Double Top reversal pattern* Fibonacci Retracement(In case you need more information about the above analysis, you can click the links above to the articles in this blog that discuss further about those topics)Other than learning the tips how to make use & combine various technical techniques to complement and support certain analysis, from this video you can also get some useful tips for your trading.Analysis...

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Stop Limit Order

Stop Limit Order is an order (buy/sell) to close a position that only executes when the current market price of an option/stock hit or passes through a predetermined price (i.e. Stop Price).Once the Stop Price is passed, the Stop Order becomes a Limit Order, and can only be executed at a specific price (i.e. Limit Price) or better.As you may have noticed, Stop Limit Order is almost similar to Stop Order. The main difference is that in Stop Limit Order, when the Stop Price is passed, the order will be converted into a Limit Order, whereas for Stop Order, it�ll convert into a Market Order.Depending on the position on the market you have (long or short), there are 2 types of Stop Limit Order:a) Sell Stop LimitThis is the stop limit order when you have a long position on a security.In this case,...

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Market Analysis Video: Is S&P Losing Momentum on the Upside?

While the market still seems to be higher, it also appears that it is losing momentum on the upside.This can be seen in the market�s second attempt to close above the 950 level.In addition, some of the momentum indicators are also showing negative divergences.This means that while the S&P 500 is making new highs for the move, the momentum indicators are not making new high, but instead showing lower high.The appearance of negative divergences could often be the first indication of a potential market correction.See the video for more detailed analysis.Analysis Tool:Get Free Trend Analysis for your favorite symbolsRelated Topics:* Trading Tips Video: Fibonacci Retracement, Support/Resistance, Stop Loss, Price Target* Learning Candlestick Charts* Learning Charts Patte...

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