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Regulations Videos 358 videos

Finance: What is Rescission?
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What is rescission? Hit play to find out.

Finance: What is Material Information?
8 Views

Materials information is important information pertaining to a securities transaction.

Finance: What is Arbitration?
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What is Arbitration? Arbitration is like court for the financial world. It is used to settle disputes between investors and their brokers. An inves...

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Finance: What are Ascending and Descending Tops and Triangles? 2 Views


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Description:

What are ascending and descending tops and triangles? Ascending and descending tops and triangles are used to describe market performance graphs. The tops are the peaks on the graphs; if they are ascending then the market is improving with each time period, if they are descending the market is dropping with each time period. The triangles are created by making a line through the bottom of these shapes that signals either upward or downward trends in the stock or overall market, depending on the type of top.

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Transcript

00:00

Finance a la shmoop what are asending and descending tops and triangles well

00:08

it's almost like a stock breakout to the good is being squeezed out the end right [Ascending triangle stock prices on a graph]

00:13

here... well in this pattern it's like the stock can't help but go up at

00:17

the end of the triangles here well ascending tops and triangles is a trading

00:22

pattern used by Chartist style traders ie traders who just focus on the graphic

00:27

representation of stock performance, well the same holds true for descending tops

00:32

and triangles basically take everything we said here and invert it..Oh head rush [Triangle inverted on graph]

00:38

there flip that back over - Note the pattern here of ups and downs but as

00:43

time progresses the blue line at the bottom acts as if it's a lower limit [Arrow points to blue lower limit line]

00:47

where the stock can't bounce through that virtual floor it just goes up and

00:51

then one day like as zit that's bursting at the seams well the stock pops and

00:55

creates a new set of ascending tops and triangles hopefully it doesn't leave a

00:59

pock mark on your portfolio well when it does that [Man holding up portfolio]

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