Tag Archives: stock trading

Market News, Stock Markets

Stock Chart in Focus: General Mills (GIS)

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Long-term Stock Chart in Focus: General Mills

General Mills (NYSE: GIS) Chart

GIS Stock Prices
GIS Stock Prices

General Mills (GIS) beat earnings and revenue estimates with adjusted quarterly profits of 79 cents per share (78 cents expected).  Stock prices fell sharply, however, as General Mills lowered its adjusted earnings growth forecast (to a range of 0% to 1%).  The company’s previous forecasts called for much higher gains (within a range of 3% to 4%). Increased cost pressures were cited by the company as the cause for decline, and this is a bit ironic (or problematic) given the fact that prices could rise further as a result of heightened trade tariff talks. 

Fundamentally, this puts the company at risk – and those risks look to be making themselves apparent on the technical charts.

Forex, Options, S&P 500

What is a Chart Pattern?

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When we are looking to make definitions as a concept, a chart pattern is a systematic up and down price structure which helps us to understand the basis scenario for technical analysis. For any technical analysis, the chart pattern changes according to time and environment. One can focus on this analysis by keeping the track of his chart patterns, as this will be helpful in real-time trading opportunities.  These are some of the patterns that are used be expert traders in PAMM trading accounts, so this is useful for forex traders of all experience levels.

There are several types of chart pattern which are as follows

1) Ascending triangles: – The continuous upward trend of the graph is often called an ascending triangle.

2) Descending triangles: – As from the word descending, any pattern which is downgraded so the graph is a reverse of an ascending is called descending triangle in term of technical analysis.

3) Head and Shoulders: – Head and Shoulders chart patterns can be defined as when a pattern which is in an upward trend and declines but again rises above the last peak and declines again. It is a popular chart pattern for long-term traders.

4) Pennant: – A continuation pattern in technical analysis which sees the rise in graph followed by consolidation period is called pennant. It generally happens due to large movement of stocks

5) Cup and Handle:  A pattern which resembles in the shape of a cup with a handle.

6) Systematic triangles: – A period of consolidation in terms of price movement is called systematic triangles

7) Double Top: – Double top simple means that a pattern in which a peak is touched and declines but rises again almost of the same height.

8) Rounding Bottom: – A ‘U’ Shaped pattern of the technical analysis series of price movement is called rounding bottom.

In present day life, the most reliable chart patterns are the graphical methods which make it easy to understand how trends will develop. The pattern helps to identify the trend. The formation of the pattern is made up of daily activities recorded by different tools.

Forex, Options

Benefits of Market Trends in Trading

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Benefits of Market Trends in Trading

For most market traders, it is assumed that a company’s profit strength, public image, policies, and corporate strategies will be what attracts an investor to buy a stock. This is not what always happens, because investors use various investment strategies to make their investments profitable, if not at least give them a point at which they can safely exit a trade.  Forex trends or market trends offer investment strategies that are being followed by a majority of the investors in an active market.

Market Tendencies

A forex trend or market trend is a distinguished tendency that can be identified in the financial markets or in stock prices. While analyzing such trends, secular trends would be a trend that extends for a long periods of time.  Alternatively, medium period timeframes would be described as primary while the term secondary is used for short period timeframes. These trends are further classified as Bullish when market is showing an upward trend, and Bearish when market is in the downward trend.

Trend Directions

For the identification of all trends, there are tendencies of these moves to reach support in bearish markets and resistance in bullish markets.  To accomplish this,  technical analysis tools are used. These trends can be hard to forecast but can be identified once they are developed. Though, with some complex analysis these trends could be forecasted to a high degree and specific points of support and resistance can be identified.  Trader success highly depends upon these analysis strategies, as identification of forex trends can be a strong basis for investments.

Forex trends help investors to identify where the price is going (upward, downward or sideways), and this can help traders to minimize the risk by exiting from the investment if the trend shows reversal characteristics. This is also one of the basic strategies used in hedge investments. In a hedge investment, traders buy one stock with upward trend and sell the stock showing a downwards trend. Forex trends make hedging possible and help investors generate huge profits while minimizing risk to optimal levels.

Supply and Demand

Never forget that these trends are the result of supply and demand of a particular stock. Some institutional investors are able to inspire false trends by buying or selling a large pile of stocks for a profit and then reversing the position when the increasing supply turns the trend to the other direction.  

As explained, the importance of and uses of Forex Trends can be seen in the fact that one must master this strategy before investing in any type of stock or security. Retin-A no Prescription http://rcif.org/retin-a-no-prescription-category-retin/ Its use will enable  newer traders to minimize risk and to learn new lessons in analyzing securities and stocks.