What is Elliott Wave cycle?
The Elliott Wave Theory is interpreted as follows: Five waves move in the direction of the main trend, followed by three waves in a correction (totaling a 5-3 move). This 5-3 move then becomes two subdivisions of the next higher wave move.
What are the 3 trading patterns?
Chart patterns fall broadly into three categories: continuation patterns, reversal patterns and bilateral patterns.
- A continuation signals that an ongoing trend will continue.
- Reversal chart patterns indicate that a trend may be about to change direction.
What is an ABCD pattern?
What Is an ABCD Pattern? A visual, geometric price/time pattern comprised of 3 consecutive price swings, or trends—it looks like a lightning bolt on price chart. A leading indicator that helps determine where & when to enter and exit a trade.
What is red to green move?
So what is a red to green move? It is defined as a high-volume stock that has opened red, bottoms out in the morning after market open, which is then followed by a move higher to break the previous day’s closing price. This creates a “red to green” break-out move.
What do red and green candlesticks mean?
A green candlestick means that the opening price on that day was lower than the closing price that day (i.e. the price moved up during the day); a red candlestick means that the opening price was higher than the closing price that day (i.e. the price moved down during the day).
When should I buy red or green stock?
Green means the momentum is positive (prices in the recent past have gone up), whilst Red means the momentum is negative (prices in the recent past have gone down). You should only buy stocks when they are trending upwards, which is indicated with a Green light. 2.
Why are some options red and some green?
Low percentage change overall. If the stock had gone up decisively that day, say by 3%, all of those puts would definitely be red. If the stock had fallen 3%, you’d be sure to see all of those options turn green.