How to Identify Stock Trend Reversals

How to Identify Stock Trend Reversals

What is a Trend Reversal? A trend reversal is simply a change in the direction of a stock’s price trend. In layman’s terms, the asset’s price moves in the opposite direction, signaling the end of a downtrend and the start of an uptrend, or vice...
Market Makers vs. ECNs

Market Makers vs. ECNs

Introduction When you place an order to trade stocks, there are typically two ways in which it can be processed: by a market maker or by an electronic communications network (ECN). Market makers and ECNs are critical for keeping the market running smoothly and play...

Inverse Head and Shoulders Pattern: The Complete Guide

In this article, we’ll be detailing the inverse version of the well-known head and shoulders chart pattern so you can start effectively incorporating it into your trading. An inverse head and shoulders pattern is a technical analysis pattern that signals a...
Float Rotation – What It Is and Why it Matters

Float Rotation – What It Is and Why it Matters

Float rotation describes the number of times that a stock’s floating shares turn over in a single trading day. For day traders who focus on low-float stocks, float rotation is an important factor to watch when volatility spikes. In this guide, we’ll explain what float...
Level 1 vs. Level 2 Market Data

Level 1 vs. Level 2 Market Data

Successful trading relies on having good information about the market for a stock. Price information is often visualized through technical charts, but traders can also benefit from data about the outstanding orders for a stock. This type of data is known as Level 1...
What is a Shelf Offering?

What is a Shelf Offering?

Have you ever seen a stock exhibiting normal trading behavior and then all of a sudden the stock price drastically drops out of nowhere? This type of price action could be related to the announcement of a shelf offering or the execution of an “at-the-market” sale from...