Broadening Formations Or Megaphone
Profiting from Broadening Formations
Broadening formations are generally bearish for most long-term investors and trend traders since they are characterized by rising volatility without a clear move in a single direction. However, they are good news for swing traders and day traders, who attempt to profit from volatility rather than relying on directional movements in a market. These traders rely on technical analysis techniques, such as trendlines or technical indicators, to quickly enter and exit trades that capitalize on short-term movements. The trendlines help them anticipate turning points where they are able to profit from trading decisions if they time the trade successfully or to cut their losses short if the price moves against their position.
Reference article:
https://www.investopedia.com/terms/b/broadeningformation.asp
Broadening formations are generally bearish for most long-term investors and trend traders since they are characterized by rising volatility without a clear move in a single direction. However, they are good news for swing traders and day traders, who attempt to profit from volatility rather than relying on directional movements in a market. These traders rely on technical analysis techniques, such as trendlines or technical indicators, to quickly enter and exit trades that capitalize on short-term movements. The trendlines help them anticipate turning points where they are able to profit from trading decisions if they time the trade successfully or to cut their losses short if the price moves against their position.
Reference article:
https://www.investopedia.com/terms/b/broadeningformation.asp
+250 Quantitative Stock and Option ideas every day!
patreon.com/posts/why-choose-102844947?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link
patreon.com/posts/why-choose-102844947?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.