In the dynamic world of trading, one peculiar phenomenon that often catches investors' attention is the "Dead Cat Bounce." This term, as bizarre as it sounds, is a crucial concept in technical analysis and market psychology. It refers to a temporary recovery in the price of a declining stock, followed by a continuation of the downtrend. This article delves into...
Stocks that are falling rapidly often have the illusion that they will never stop falling. The panic that settles into the mindset of an investor who is watching his or her profits and capital erode overnight can overwhelm a stock’s price action. So for a brief time, the stock can behave outside of what the chart patterns would suggest was reasonable. But the...
Hello, dear subscribers! Today we are going to examine a very interesting chart pattern which can help you to find the hidden danger in the market. The dead cat bounce is the reverse bearish pattern, hence the market should be in the uptrend before it's formation. After the swing high point is reached the sharp price drop usually follows. When we are able to...
To all my beloved friends there. Watch out!
Hello traders, after Easter, we share another educational video. Today´s topic is focused on drawing support and resistance levels. Many traders draw LINES and they think the market will bounce exactly from that level. The truth is, you can never do that . Instead, it´s better to understand the S/R level as a zone WHERE you can EXPECT some activity. Nobody...
Introduction Its halloween ! And i felt like making a post about spooky stuff related to trading. I wanted to discuss about what is a zombie economy but i clearly don't have the time nor the experience to do that. So instead i'll talk about the dead cat bounce, a pattern commonly found in downtrending (bearish) markets, this pattern is also known as "Bear market...
FX:GBPUSD Description: GBP/USD shows strong support within DeMarker indicator (DeMarker was used to replace RSI and Slow Stoch) MACD and MACz Vwap shows continuation of the bullish uptrend for hourly and daily chart high time-frames Within opening bell wait for Fractals v9 TUX EMA Scalper and CM_PSAR EM Envelope confirmation for the entry...
PFF formed a downtrend parallel channel. A downtrend parallel channel (bearish channel) is a continuation pattern that slopes down and is bound by an upper and lower trend line. The upper downtrend line it is called main line and marks resistance and the lower downtrend line it is called channel line and marks support. For a bearish channel, the main line extends...