Author: learnstocks

Head and Shoulders

The Head and Shoulders pattern is classified as a reversal formation. The Head and Shoulder pattern can be seen in a chart when it has formed a peak (first shoulder), followed by a higher peak (the head) and a final lower peak (second shoulder). After identifying the head...

Double Bottom Pattern

The Double Bottom Pattern is formed when a stock’s price falls to a support level once, bounces off and then falls right back down to the same support level. Therefore, usually within a short time span, a stock hit two lows of nearly the same price. The Double...

Double Top Pattern

The Double Top Pattern is formed when a stock’s price climbs to a resistance level once, bounces off and then climbs right back the same resistance level. Therefore, usually within a short time span, a stock hit two highs of nearly the same price. The...

Descending Triangle

Reverse all that we wrote about the Ascending Triangle Pattern and you have the Descending Triangle Pattern. This means, that the Descending Triangle Pattern is formed when the stock is showing strong support at a given low, but it is having lower and lower highs. The struggle between sellers and...

Ascending Triangle

The Ascending Triangle Pattern is formed when a chart has higher and higher lows with a resistance level it cannot break through. This is commonly a battle being fought hard by the buyers of a stock. The stock’s intraday highs are not increasing, but its average intraday...

More Technical Indicators

Wait, aren’t there more technical indicators? Yes, quite a few actually. However, we have covered the most commonly used ones. So, now we hope you are ready to go out and conquer the world on technical chart analysis. While you are at it, who knows,...

What is the Stock Market?

The short and sweet answer is, a way to own part of a company that you do not manage or even work for. Therefore gaining the ability to earn from a company’s success. Companies are either privately held or publicly held. When you hear of...

Market Makers

A market maker is a broker or a dealer firm that agrees to hold a given number of shares in a particular stock thereby allowing for trading to occur. Market makers compete with each other for sales of a stock to the customer. They do...

Major US Stock Exchanges

Most of the stock securities are traded on what are called stock exchanges. Stock exchanges are where stock traders come together to decide on the price of a stock security. If you have ever watched the opening bell being rung at the NYSE you have...

Buying Stocks

You should now have the basic concept of the stock market, the exchanges that exists within it and just what it means to buy and sell a stock. Now you are probably wondering what it takes to get setup and started buying and selling stocks...