Bollinger Bands – Playing the Bollinger Double doji forex trading, BB breakouts, and option volatility strategies. Stochastics – Oversold and overbought areas, as well as interpreting stochastic price divergences. Candlestick Basics – If the closing price is above the opening price, then candlestick is bullish. Doji – A doji formation is a sign of indecision, neither bulls nor bears can take control.
Bearish Engulfing – When new highs are rejected and the bears push prices below yesterday’s low. Bullish Engulfing – When new lows are rejected and bulls push prices above yesterday’s high. Shoulders – Prices might fall below support created by left shoulder and head. Flag – Continuation pattern, breakouts above consolidation or breakouts below support. Resistance – Support is an area where historically buyers have stopped further price decreases, resistance is where sellers typically stop further price increases.
Call Option – If bullish, call options maximize leverage and minimize risk to the downside. Bull Call Spread – A risk defined and reward defined alternative to buying call options. Bear Put Spread – A cheaper alternative to buying put options outright, however, defines max reward. Volume confirms the strength of a trend or suggests about its weakness.