Author Archives: Winstone Market

The rectangle graphical pattern serves to confirm the direction of the existing trend. The bearish rectangle is formed in a downtrend and indicates high probability for the further decrease in the asset price.

The market must be in clearly defined uptrend. The first candle is bullish. The second candle is bearish. The bearish candle engulfs the previous candle’s body. The size of the candle being engulfed doesn’t matter. Ignore the wicks. An even stronger signal occurs when the bearish candle engulfs the bodies of two or three previous [...]

A market, which is characterized by falling prices (quotes).

Basis is the difference in price between the futures price and the price of the underlying asset. The basis can be both positive and negative. By the time the contract expires, the basis will be zero, as futures and spot prices will be equal.