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09 May 2022
In Eğitim Forumu
Double Bottom Reversal the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between. Note that a Double Bottom Reversal on a bar or line chart is completely different from Double Bottom Breakdown on a P&F chart. Namely, Double Bottom Breakdowns on P&F charts are bearish patterns that mark a downside support break. forex signal Although there can be variations, the classic Double Bottom Reversal usually marks an intermediate or long-term change in trend. Many potential Double Bottom Reversals can form during a downtrend, but until key resistance is broken, a reversal cannot be confirmed. To help clarify, we will look at the key points in the formation and then walk through an example. Prior Trend: With any reversal pattern, there must be an existing trend to reverse. In the case of the Double Bottom Reversal, a significant downtrend of several months should be in place. First Trough: The first trough should mark the lowest point of the current trend. As such, the first trough is fairly normal in appearance and the downtrend remains firmly in place. Peak: After the first trough, an advance takes place that typically ranges from 10 to 20%. Volume on the advance from the first trough is usually inconsequential, but an increase could signal early accumulation. The high of the peak is sometimes rounded or drawn out a bit from the hesitation to go back down. This hesitation indicates that demand is increasing, but still not strong enough for a breakout. توصيات الذهب Second Trough: The decline off of the reaction high usually occurs with low volume and meets support from the previous low. Support from the previous low should be expected. Even after establishing support, only the possibility of a Double Bottom Reversal exists, and it still needs to be confirmed. The time period between troughs can vary from a few weeks to many months, with the norm being 1-3 months. While exact troughs are preferable, there is some room to maneuver; typically, a trough within 3% of its predecessor is considered valid. Advance From Trough: Volume is more important for the Double Bottom Reversal than the double top. There should be clear evidence that volume and buying pressure are accelerating during the advance off of the second trough. An accelerated ascent, perhaps marked with a gap or two, also indicates a potential change in sentiment. Resistance Break: Even after trading up to resistance, the double top and trend reversal are still not complete. Breaking resistance from the highest point between the troughs completes the Double Bottom Reversal. Like advances, these should occur with an increase in volume and/or an accelerated ascent. Resistance Turned Support: Broken resistance becomes potential support and there is sometimes a test of this newfound support level with the first correction. Such a test can offer a second chance to close a short position or initiate a long. Price Target: The distance from the resistance breakout to trough lows can be added on top of the resistance break to estimate a target. This would imply that the bigger the formation is, the larger the potential advance. توصيات الفوركس It is important to remember that the Double Bottom Reversal is an intermediate to long-term reversal pattern that will not form in a few days. Even though formation in a few weeks is possible, it is preferable to have at least 4 weeks between lows. Bottoms usually take longer to form than tops; patience can often be a virtue.
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gold gold
18 Nis 2022
In Eğitim Forumu
Growth Investing Rather than look for low-cost deals, growth investors want investments that offer strong upside potential when it comes to the future earnings of stocks. It could be said that a growth investor is often looking for the “next big thing.” Growth investing, however, is not a reckless embrace of speculative investing. Rather, it involves evaluating a stock’s current health as well as its potential to grow. A growth investor considers the prospects of the industry in which the stock thrives. You may ask, for example, if there’s a future for electric vehicles before investing in Tesla. Or, you may wonder if A.I. will become a fixture of everyday living before investing in a technology company. There must be evidence of a widespread and robust appetite for the company's services or products if it’s going to grow. Investors can answer this question by looking at a company's recent history. Simply put: A growth stock should be growing. The company should have a consistent trend of strong earnings and revenue signifying a capacity to deliver on growth expectations. A drawback to growth investing is a lack of dividends. If a company is in growth mode, it often needs capital to sustain its expansion. This doesn’t leave much (or any) cash left for dividend payments. Moreover, with faster earnings growth comes higher valuations which are, for most investors, a higher risk proposition. Does Growth Investing Work? As the research above indicates, value investing tends to outperform growth investing over the long-term. These findings don’t mean a growth investor can't profit from the strategy, it merely means a growth strategy doesn’t usually generate the level of returns seen with value investing. But according to a study from New York University’s Stern School of Business, “While growth investing underperforms value investing, especially over long time periods, it is also true that there are sub-periods, where growth investing dominates.”5 The challenge, of course, is determining when these “sub-periods” will occur. Some growth investing style detractors warn that “growth at any price” is a dangerous approach. Such a drive gave rise to the tech bubble which vaporized millions of portfolios. “Over the past decade, the average growth stock has returned 159% vs. just 89% for value,” according to Money magazine’s Investor’s Guide 2018.6 Growth Investing Variables Forex trading Signals While there is no definitive list of hard metrics to guide a growth strategy, there are a few factors an investor should consider. Research from Merrill Lynch, for example, found that growth stocks outperform during periods of falling interest rates. It's important to keep in mind that at the first sign of a downturn in the economy, growth stocks are often the first to get hit https://www.gold-pattern.com/en Forex trading Signals Growth investors also need to carefully consider the management prowess of a business’s executive team. Achieving growth is among the most difficult challenges for a firm. Therefore, a stellar leadership team is required. Investors must watch how the team performs and the means by which it achieves growth. Growth is of little value if it’s achieved with heavy borrowing. At the same time, investors should evaluate the competition. A company may enjoy stellar growth, but if its primary product is easily replicated, the long-term prospects are dim. GoPro is a prime example of this phenomenon. The once high-flying stock has seen regular annual revenue declines since 2015. “In the months following its debut, shares more than tripled the IPO price of $24 to as much as $87,” the Wall Street Journal reported.7 The stock has traded well below its IPO price. Much of this demise is attributed to the easily replicated design. After all, GoPro is, at its core, a small camera in a box. The rising popularity and quality of smartphone cameras offer a cheap alternative to paying $400 to $600 for what is essentially a one-function piece of equipment. Moreover, the company has been unsuccessful at designing and releasing new products which is a necessary step to sustaining growth—something growth investors must consider.
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