Chart Patterns

The shape of a price chart that helps traders determine the next buy or sell by predicting what the prices may do next based on what they’ve done in the past.  They form the basis of technical analysis, and require the discerning trader to know what...

Call Option Trading

An option contract that gives the buyer the ability (not the obligation) to buy a defined amount of a stock, bond, commodity, or asset at a specified price (or “strike price”) within a specified time.  A call option is the opposite of a put option, wherein...

Binary Options Trading

A financial option that comes with one of two payoff options: either a fixed amount or nothing at all.  They’re referred to binary options as there are only two potential outcomes.  The premise comes down to a yes or no question: will an underlying asset rise...

Bull Flag Candlestick Patterns

A technical pattern that acts as an extension of an established upward trend.  It can be identified by a strong move upwards followed by a consolidation near the top of the pole (forming the flag).  The stock then breaks out of consolidation and continues on an upward...

Breakout Trading

A stock price moving outside a defined support or resistance level with increased volume.  A breakout trader monitors securities that have been resistant to moving above defined price level and waits for it to move beyond its previous resistance point.  Then the...

Bond

An instrument of indebtedness of the bond issuer to the bond holder, typically corporate or governmental.  They’re also units of corporate debt issued by companies and securitized as tradable assets.  Bond prices also have an inverse relationship with interest...

Bollinger Bands

A centerline with two price channels (or “bands”) above and below it.  The centerline acts as an exponential moving average, while the bands are the standard deviation of the stock in question.  The bands will expand or contract as the price action becomes...

Bearish Engulfing

Bearish engulfing patterns are one of the most well-known candlestick patterns because they are easily identified and give a clear signal. Since candlesticks are the basic building block of most technical analysis, the ability to recognize different candlestick...