Put-Call Ratio (PCR)

The Put-Call Ratio (PCR) is a sentiment indicator used by traders to gauge market direction by comparing the number of traded put options (bets on price falling) to call options (bets on price rising). A high PCR indicates bearish sentiment, while a low PCR suggests bullish sentiment. Purpose of PCR : PCR helps identify whether ... Read more

Ascending Price Channel (Bullish Channel)

A trend-following pattern where price moves within two parallel upward-sloping trendlines, acting as dynamic support and resistance. This pattern indicates an orderly and sustained uptrend, where pullbacks provide buying opportunities within a defined structure. Significance Indicates a steady uptrend with well-defined support and resistance levels. Frequently appears in bullish markets, signalling a continuation of the ... Read more

Falling Wedge

A bullish reversal pattern that forms when the price moves lower within a narrowing downward-sloping channel. This pattern indicates that selling pressure is weakening, and a breakout to the upside is likely. It signals that buyers are gradually taking control, leading to a potential trend reversal from a downtrend to an uptrend. Significance Suggests that ... Read more

Bullish Flag

A Bullish Flag is a short-term continuation pattern that appears after a strong price rally. It forms a small downward or sideways consolidation resembling a flag on a pole. Once the price breaks out above the flag, it signals a continuation of the uptrend. This pattern indicates a brief pause before the next upward move. ... Read more

Momentum vs. Volatility

Factor Momentum (Trend Strength & Speed) Volatility (Price Fluctuations & Uncertainty) Definition Measures how fast and strong a price moves in one direction. Measures how much and how quickly price fluctuates up and down. Direction Moves steadily in one direction (up or down). Moves both up and down unpredictably. Market Type Best in trending markets. ... Read more

Triple Bottom

A bullish reversal pattern that forms when the price tests a support level three times but fails to break lower. This pattern signals strong buying pressure and a potential trend reversal from a downtrend to an uptrend. It is considered stronger than the Double Bottom since price has tested the support multiple times, showing that ... Read more

Doble Bottom

A W-shaped formation where price tests a support level twice at nearly the same level but fails to break lower. This pattern signals a potential trend reversal from a downtrend to an uptrend. It forms after a prolonged bearish trend, and a breakout above the middle peak resistance confirms the bullish reversal. Significance Suggests strong ... Read more

Double Top

A M-shaped pattern where price tests resistance twice at nearly the same level but fails to break higher. This pattern signals that buyers are losing strength, and a breakdown below support confirms a bearish trend reversal. Significance Suggests that strong resistance is preventing further price increases. Indicates a shift in market sentiment from bullish to ... Read more

Rising Wedge

A narrowing upward pattern where price forms higher highs and higher lows, but the range contracts before breaking downward. This pattern signals that buyers are losing momentum, and a breakdown confirms a bearish trend. Significance Suggests that buying pressure is weakening, despite the uptrend. Often leads to a sharp price decline once support breaks. A ... Read more