Life is full of patterns, and those who recognize them will quickly find themselves ahead of the pack—especially when it comes to a pattern trading strategy for securities. As the name implies, a ...

Head and shoulders pattern trading can be a great way to predict and capitalize on the end of a trend and an impending price reversal. A trend reversal formation, head and shoulders patterns are easy ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Traders often use the cup and handle pattern in technical analysis to look for possible bullish continuing patterns in the market. This pattern has a cup-shaped shape at the beginning, followed by a ...

A pattern day trader is a trader who makes four or more qualifying day trades in a five-day period. To qualify as a pattern day trader, the individual must meet two additional criteria. The person ...

Pattern day traders must maintain a $25,000 minimum balance to trade. Accounts are flagged for pattern trading with 4 same-day trades in 5 days. Exceeding day trade limits triggers a margin call, ...