Trading Articles

Lessons from Legendary Stock Traders: Jesse Livermoore

December 12th: Descending Channel

USD\JPY is in a strong descending channel at the daily chart. The channel was tested for 7 times and is considered a very reliable pattern.

Traders can take trades on the Resistance trendlines, after candlesticks confirm the entry. A target for this trade is the support trend line.

Short trade can be signaled when price breaks the channel downwards, or pulls back to the broken trendline.

Decemer 8th: Bearish Megaphone at USD\CAD

A Megaphone at 4-hour chart may signal the bearish breakout and a beginning of a downtrend at the USD\CAD. Price has finish 4 touches at the trend lines of the Megaphone and it is expected to create a partial rotation, reverse and break the support trendline. Megaphone is based on the 1.0400 Support level which is a strong psychological level - once the megaphone is broken we could expect this level to break as well.

Trading Head & Shoulders Pattern: New Techniques

The Head & Shoulders is one of the most known chart patterns, and often considered the best one. Enjoying a win rate of 95%, it is not surprising. In this tutorial you will learn new, undisclosed methods to trade this chart pattern.

The Head & Shoulders consists of three tops (or bottom), with the second one being beyond the 1st and 3rd, thus creating a shape of a Head that is surrounded with two shoulders. The line that serves as support and connects the shoulder-head-shoulder from below is called Neckline.

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