Technical analysis is a study of price and volume. We already looked at prices as candlesticks and chart patterns, now let’s look at what does volume mean in stocks or any other assets. What is Volume? Volume, in financial markets, refers to the total number of shares or units traded during a specific time period. […]
To learn how to trade chart patterns, the first step is to understand what they are. Let’s dive into it. What are Chart Patterns? Chart patterns are visual representations of price movements in financial markets displayed on a price chart. Chart patterns appear in different timeframes, from short-term minute charts to longer-term daily or even
In the big and ever-changing world of trading, learning the basic ideas is super important for doing well. Two really important ideas are support and resistance. They’re like the strong foundation that traders use to make their trading strategies. Knowing what these terms mean helps traders understand how the market works and helps them make
Candlesticks charts are a type of chart used to represent the price movements in financial markets. they provide a visual representation of the price action over a specified time period, usually ranging from a few minutes to several years. Each candlestick on the chart represents a single trading period, such as a day, week, or
Before we dive into different types of technical charts, let’s first understand the concept of technical analysis. What is Technical Analysis? Technical analysis for trading is a method of evaluating securities/assets based on statistical trends and patterns in market data, such as price and volume. It is used to identify potential trading opportunities by analyzing
Financial markets are dynamic ecosystems where individuals and institutions trade a vast array of financial instruments, from stocks and bonds to currencies and commodities. While the markets can seem daunting to newcomers, they offer tremendous opportunities for those who understand how to navigate them effectively. Making money in financial markets requires a combination of knowledge,
In the previous article, we reached the inference that the prices are influenced by the orders placed by individuals. Thus, if we knew the intended actions of others with their orders, it would become effortless for us to anticipate the direction in which the price would move, correct? As a trader, our job is to
The common belief among many individuals is that the news or events are the driving force behind price movements, when in reality why do prices change? Well, it is the orders placed by people in the market that cause prices to fluctuate. To understand how prices change, you need to get a handle on these
In this article, we’ll learn how to purchase stocks or any other asset from a marketplace. What is an Order? To buy or sell an asset from an exchange, we must provide a broker with an order that includes the asset’s name, quantity, order type, price, and direction (buy or sell). This order enables the
Welcome to xlearn’s series on Financial Markets, where you can learn about trading stocks and other finance stuff. This series is for those interested in financial markets, giving you a peek into how it works and how to make money out of it. The goal is to give you the knowledge and tools so you
