Trading Insights

An ascending triangle chart pattern is a bullish technical pattern that typically signals the continuation of an uptrend. They can signal a coming bullish breakout above an area of resistance after it has been tested several times. In this guide, we’ll explain what...

The ability to borrow stocks is essential for short selling. The process of borrowing a stock is distinct from the process of buying a stock and depends heavily on your brokerage. In this article, we’ll take a closer look at how borrowing stocks works. Why Traders...

Most traders are aware of initial public offerings, but few fully understand secondary offerings. If you have been trading for awhile, you’ve likely seen their impact. It’s a typical sequence as shares in a stock spike up strong one day and then collapse in the...

Bear traps are price movements that can trick an unwary trader into losing money. They tempt short sellers to bet that the price of a stock will go down, when in reality it is going up. In this guide, we‘ll explain what bear traps are and how you can avoid getting...

When it comes to technical analysis, there are a number of patterns that traders watch for in order to identify potential trading opportunities. One such pattern is the bullish pennant pattern. In this guide, we will discuss what this pattern is, the psychology behind...

If you are an active stock trader, then you may have come across price action tools and indicators for technical analysis. From trading indicators and chart patterns to technical analysis theories, there are many strategies to choose from.  Candlestick patterns are...

The Short Sale Rule (SSR) is a rule imposed by the SEC that governs when stocks can be short sold. It’s designed to prevent short sellers from piling onto a down trending stock and causing the price to crater. The Short Sale Rule is very important for short sellers to...

Earnings reports provide important updates to investors about how a company is doing financially and what the company’s management expects the near future to look like. Earnings reports are often the catalyst for significant movements in a company’s stock price as...

A bull trap is a price movement that lures bullish investors into thinking that the price of a stock is about to rise. In reality, any upward movement is short-lived and quickly overtaken by bearish activity, causing traders who bought into the bull trap to lose...

Momentum stocks offer opportunities for traders to ride a wave of price action for short-term profits. However, to trade momentum stocks successfully, it’s important to recognize momentum early on and know when to exit a trade. In this guide, we’ll explain what...

ECNs, or electronic communication networks, are computerized networks in which traders can trade directly with one another. ECNs have several advantages, including tighter spreads and more options for after-hours trading. However, they can also have drawbacks such as...

Unusual options activity occurs when trading volume in an options contract is high above its average. This type of activity is often due to institutional investors and it can be a signal that smart money thinks the price of a stock will move soon. Keeping an eye on...

Time and sales is a running display of all trades executed for a particular stock. It is often used by traders as a way to gauge activity around a particular stock and to find potential entry and exit points. In this guide, we’ll explain what time and sales is and how...

Technical indicators play an important role in trading, and particularly in day trading. Indicators provide deeper insight into price movements and give traders the information they need to identify potential setups and make trading decisions. While there are hundreds...

Learning to manage risk effectively is key to success as a trader. Good risk management helps minimize your losses and preserves the gains from your winning trades. By understanding the risk/reward ratio of any individual trade, you can better decide which setups to...