The Series of Technical Analysis Tools Chapter 4: “Price Channel”

What is a Price Channel?
The price channels are basically two parallel lines, drawn above and below the price security. The upper line is set at the period high, and the lower line is set at the period low. So, for a 20 days price channel, the upper channel would be equal to 20 day high, and the lower channel would be equal to 20 day low.

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The Series of Chart Patterns Chapter 14: “Cup & Handle”

What is Cup & Handle chart pattern?

A Cup and Handle can be used as an entry pattern for the continuation of an established bullish trend. It´s one of the easiest patterns to identify. The cup has a soft U-shape, retraces the prior move for about ⅓ and looks like a bowl. After forming the cup, price pulls back to about ⅓ of the cups advance, forming the handle. The full pattern is complete when price breaks out of this consolidation in the direction of the cups advance.

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The Series of Chart Patterns Chapter 13: “Gaps”

What are Gaps?

Gaps occur when there is an empty space between two trading periods that are caused by a significant increase/decrease in price; i.e. current open is not the same as prior closing price. E.g. A stock might close at INR 500 and open at INR 510 after positive earnings. This is called as Gap-up. There are three main types of Gaps: 1) Break away 2) Run away 3) Exhaustion

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