What is a Concept of Pyramiding

Pyramiding is a traditional trading strategy of increasing a position size by using margin from unrealized gains. Put simply, Pyramiding means that you add to an existing position as soon as price moves in your favor. A trader would then start with a small initial position and as the trade unfolds add to his winners and slowly develop a bigger position.

Continue reading

An Overview Of Chart Types Used In Technical Analysis

Charts are graphical presentations of price information of securities over time. Charts plot historical data based on a combination of price, volume as well as time intervals. The use of charts is so prevalent, that technical analyst is often referred to as chartists. Originally, charts were drawn manually, but a majority of charts nowadays are drawn by computer.

Continue reading

An Introduction to Price Action Trading Strategies

What is Price Action?

Price action trading means basing your trading decisions on the price movements of an asset. You won’t work with indicators or other methods of analysis, or you’ll give them very little weight in the trading decision process. Price action traders believe that trades need to be made on the most important and up-to-date information, which they hold to be the current price as well as price history of a particular security.

Continue reading