Lynas Corporation Limited (LYC.AX) experienced a meteoric rise to its all-time high of 2.700 in April of 2011. After a steady upward climb, the stock hit rougher waters beginning in October 2010 when it encountered resistance around the 1.635 level. The stock, however, eventually made its way to its highest price over the next six months, weathering multiple peaks and valleys in between.  Read More…

Gaps are a great way for traders to decode certain activity within the market which might otherwise be hidden by a wealth of chart or candlestick patterns. There are different types of gaps, each with their own purposes and looks. For instance, there are breakaway gaps, which signal a change in momentum and price direction. At first glance on a chart, these may not look very different from other gaps such as common or runaway gaps, but while it is true that all gaps can share a similar appearance due to the fact that they gap up or down from the current price trend, it is the trend itself that dictates the type of gap a trader is dealing with.  Read More…