Category Archives: Technical Analysis

Volume Weighted Average

In finance, Volume-Weighted Average Price (VWAP) is a ratio of the profit traded to complete volume traded over a distinct time horizon – normally one day. It’s a portion of the average price a stock traded at over the trading horizon.

Double Bottom

Double Bottoms are reversal patterns and often seem to be one of the most common (together with double top patterns) patterns for currency trading. Double Bottoms patterns are identified by two consecutive low prices of the same depth with a moderate pull back up in between (neckline peak).

Cup With Handle

A cup-and-handle chart pattern resembles a cup of coffee. These are bullish continuation patterns where the growth has paused momentarily, it trades down and then continues its upward pattern. This pattern must always be at least 5 weeks long and can last up to a year. Click on this post to learn more.

Collar Option Strategy

The Collar Option Strategy is designed to limit the downside risk of a held underlying security. It can be performed by holding a long position in a security, while simultaneously going long a Put and shorting a Call. Read this article to read details of the strategy and to see a profit/loss example.

Straddles

A straddle is an investment strategy that involves the purchase or sale of an option allowing the investor to profit regardless of the direction of movement of the underlying asset, usually a stock. Read this article for details on the two straddle strategies: a long straddle and a short straddle.