Ascending and Descending Channels

In this blog Global Market Astro briefs about Ascending and Descending channels, frequently used term in technical analysis.

ASCENDING CHANNEL

An ascending channel is defined as a price action confined between upward sloping parallel lines. Higher pivot highs and higher pivot lows are technical indicators of an uptrend market. Trend lines frame out the price channel by drawing the lower line on pivot lows, and the upper line is the channel line drawn on pivot highs. Price is not always perfectly contained but the channel lines show areas of support and resistance for price targets. A higher high above an ascending channel can signal continuation. A lower low below the low of an ascending channel can signal trend change.

Price channels show trend. A trader can trend trade in a channel or swing trade from support to resistance and back to support. In an uptrend, start with the lower trend line drawn on pivot lows and add a parallel channel line to complete the formation.

DESCENDING CHANNEL

A descending channel or downtrend is the price action contained between two downward sloping parallel lines. Lower pivot highs and lower pivot lows are a bearish signal. In a downtrend, a trade might be entered at the trend line and exited at the channel line. A lower low below a descending channel can signal continuation. A higher high above the low of an ascending channel can signal trend change.

Price channels show trend direction. The slope of the channel shows momentum. Here is a simple technical edge: start the down trend line using two lower pivot highs and stay short below the trend line.                                                                                                                          

Source: https://www.globalmarketastro.com/

DEFINING ABOVE AND BELOW THE MARKET

In this blog Global Market Astro has taken initiative to explain the common terms used in day to day market activities. We have explained the blog readers regarding “Above the market” and “Below the market” in simple words easily understood by the users.

ABOVE THE MARKET

“Above the market” may be defined as an order to buy or sell at a price chosen and set higher than the current market price value of a security.

Examples of above the market orders are: a limit order to sell, a stop order to buy, or a stop-limit order to buy.

This is approach that is regularly used by momentum traders. For example, a stop order would be placed above the resistance level to buy. If the security's price breaks through the resistance level, the investor may be able to participate in the upward trend.

BELOW THE MARKET

“Below the Market” is defined as an order to buy or sell a security at a price that is lower than the current market price value. For example, a trader can place a limit order to buy a stock at a specified price that is below the current price. Below the market, helps ensure that the desired price, or better, is achieved. 

It can also be a price or rate which is lesser than the current prevailing conditions in an open market. Goods or services that are sold at a price lower than the "going," or typical, rate can be said to be below the market.

Traders and investors who want to attain a better price or position may enter an order to purchase below the market. A limit order to buy allows traders to specify the value at which they are ready to buy a security; if the limit order to buy is filled, the order will be filled at the specified price or better. A below market order to sell allows traders to quickly unload a position.

Source : https://www.globalmarketastro.com/blog/above-and-below-the-market/

DEFINING TECHNICAL ANALYSIS TERMS

In this blog Global Market Astro has tried to explain the terms “amplitude” and “arithmetic mean” that has been used frequently in daily market related technical activities.

AMPLITUDE

Amplitude can be defined as the difference in price from the midpoint of a trough to the midpoint of a peak for a traded security. Amplitude is positive while calculating a bullish retracement (when calculating from trough to peak) and is negative while calculating a bearish retracement (when calculating from peak to trough).Chart pattern analysis states that after a retracement, price will remain to move at least a distance equal to that of the retracement's amplitude.

ARITHMETIC MEAN

The arithmetic mean is a mathematical representation of the typical value of a series of numbers, calculated as the sum of all the numbers in the series divided by the total count of all numbers in the series.Arithmetic mean is usually referred to as "average" or just as "mean".

Source: https://www.globalmarketastro.com/blog/amplitude-and-arithmetic-mean/