A cup and handle price pattern on a security’s price chart is a technical indicator that resembles a cup with a handle, where the cup is in the shape of a “u” and the handle has a slight downward drift. The cup and handle is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume. The pattern’s formation may be as short as seven weeks or as long as 65 weeks.
Candlestick charts are key tools when it comes to trading, as it allows traders to interpret price information and possible market trends from a few price bars, enabling them to develop inferences about future movements and price patterns of the …
In statistics, a confidence interval (CI) is a type of estimate computed from the statistics of the observed data. This proposes a range of plausible values for an unknown parameter (for example, the mean). The interval has an associated confidence …
What is Inverse Head And Shoulders? An inverse head and shoulders, also called a “head and shoulders bottom”, is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in …
What is a Double Bottom? A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action. It describes the drop of a stock or index, a …
What is a Descending Triangle? A descending triangle is a bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects …
The bid-ask spread is the difference between the bid price for a security and its ask (or offer) price. It represents the difference between the highest price a buyer is willing to pay (bid) for a security and the lowest …
What Is A Head And Shoulders Pattern? A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head …
What Is a Double Top? A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the …