Something Interesting in Financial Video November 2014 - page 3

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Strategy Video: Don’t Be Lulled by the Comfort of Consensus

  • There is a cognitive bias whereby traders seek the consensus in position and opinion
  • This happens even when that view leads to losses - whereby the loss is 'okay' because everyone else lost
  • We discuss how we can coach ourselves away from this irrational behavior


 
How to Trade the Wedge Chart Pattern Like a Pro

The Falling Wedge:

The falling wedge pattern is characterized by a chart pattern which forms when the market makes lower lows and lower highs with a contracting range. When you find this pattern in a downtrend it is considered a reversal pattern as the contraction of the range indicates the downtrend is loosing steam.

The Rising Wedge:

The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. When you find this pattern in an uptrend it is considered a reversal pattern as the contraction of the range indicates that the uptrend is loosing steam.



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