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Double Bottom Double bottom   is one of the most common formations which indicate the direction of trend movement.  It usually appears in the chart after the downward trend. The pattern consists of two parallel roots, among which we have a line of strength.  Often called the dual layer of "w - accumulation" because it is very similar to the Latin letter W. Pic.1 - Double Root As a rule, the classic  double bottom  formation occurs when the counter-trend movement begins on the market, even if it is too small. In the development of the downward trend, we can see a lot of figures on the graph which are somewhat similar to the  double bottom  formation, but in order to turn it into the above pattern, it is necessary that the line from the second footstep to cross the resistance line from the bottom and the figure will be shown in the w. Pic.2 - Double bottom formation is confirmed Now let’s consider all the signs that should characterize the f

Stock ribbon (Times & Sales) and effective trade exchange The stock ribbon  is a great help to the traders in trading, although many think that it is almost impossible to read the stock ribbon and the DOM (Depth Market Market) after a wide arrangement of the HFT algorithms on the market.  But the fact is that most of the successful traders have the art of reading the stock tape. According to some traders, the graphs are a history because they are created in the stock line and the flow of incoming traffic in the DOM. The graphs cannot exist without the stock ribbon , but the stock tape will always exist without graphs. It should be noted that the information received from the  stock tape  and the DOM fills each other, although the two modules come in very different information. Fig. 1 - Limit orders layout DOM module In the DOM we have information about the possible intent of the traders. Bid and Ask, which are located on either the side of the colu

The correct management of trading account on the currency market: The correct management of trading account is one of the cornerstones of successful activities in the Forex Market. And in order to manage the account, it is necessary to make certain calculations that are not so comfortable for many people, especially beginner traders. Unfortunately, most of the start-up traders who come to the forex market do not approach this work as in their core business. They consider it as a hobby to relieve from some of their core activities. Therefore, soon they develop an appropriate attitude to trade on the exchange as a kind of entertainment and a time took consuming activity. As a result, most of the traders who have come to the market about 90% completely lose their trading capital, 5% maintain a level of stability (neither winning nor bearable) and only 5% of the people who have a professional and responsible approach in these activities are consistently successful. Such categ

Trend Movement direction: The direction of trend movement and most importantly its early identification is often the dream of many traders. But let's see if it is so difficult to catch the moment when the trend is changing which will allow us to open a new trend in the beginning and get a bigger profit from the dealings. The answer to the question of what could be regarded as a change in direction of the trend movement in the late 19th century by Charles Dow, considered to be one of the founders of modern technical analysis. In his postulates, we read that "the upward trend, every subsequent peak, and every subsequent fall is higher than the predecessor. In the downward trend, every subsequent peak and every subsequent drop is lower than the predecessor. " Consequently, if there is a drop in the upward trend on the chart that is lower than the previous fall, we can assure that the upward trend has changed since the seller was able to neutralize the buye

Effective trading system: Effective trading system , which gives a steady income for a long time, even if the author is usually based on certain principles that are universal. As a rule, it is a technical analysis and synthesis of the analysis. Now let's consider the elements of  an effective trading system   and what aspects should be paid attention to when carrying out market analysis. This or that trading instrument schedules studying the main attention should be paid to the areas where the major players have opened positions (which clearly shows the large sums of money to those in the market, which is revealed only in volume), as well as no less interesting is the area where the major players closed at their positions (withdrawn from the market, which AAR Month is well reflected in the volume), according to the zones stop obstructing the movement of the price schedule for certain destinations. In general, it is believed that most of the market represented by the

Mathematical E xpectations and Trading System Evaluation Methodology Mathematical expectations play a great role in evaluating trading systems , in addition to fundamental and technical analysis, trading plays an important role in mathematics, more precisely, the capital Trade Management System.  And, the main parameter of the system, the so-called  Mathematical Expectation. Traders may have full knowledge of technical analysis, is well aware of macroeconomics, realize what fundamental factors influence on the market, but if the trade is based on a negative  mathematical expectation , then it will never be successful in this activity.  Even if the transaction is closed with a profit of 8 to 10 from the transaction, it will still be a loss. For example, if the profit from each deal amounted to 10 pips, while the loss of trade in the case of item 50, we get the following picture: Earnings: 8 * 10 = 80 pips; Losses: 2 * 50 = 100 pips; Total: 80 - 1