Posts by Mary Davis

At point 4, the pattern is complete and buy signals are generated with an upside target that matches point 3, point 1, and a 161.8% increase from point 1 as the final price target. Oftentimes, point 0 is used as a stop loss level for the overall trad...

Unfortunately, implied volatility usually increases when the price of the shares fall. As a result, the profits from a stock price decrease may be offset by an increase in implied volatility. In the last section, you learned that vertical spreads can...

The risk graph below shows the potential payoffs for a long call spread in KC futures, where both the potential profit and loss from the strategy are capped. The seller of the call has the obligation to sell the underlying shares of stock at the stri...

The result of these fluctuations defines the market’s structure. With pricing charts, it’s easily visible on intraday, daily, weekly, monthly, or yearly time frames. At first, the concepts of market structure and price action can be a bit confusing. ...