It would be a good idea to go back on your charts and look for times when these patterns have appeared in the market and watch to see how they form and how they cause a continuation or reversal to take place. The Evening Star pattern is the opposite and signals a bearish reversal is […]

However, if the majority of competitors achieve gross profit margins of 25%, that’s a sign that the original company may be in financial trouble. Liquidity ratios provide a view of a company’s short-term liquidity (its ability to pay bills that are due within a year). It means that a company has enough in current assets […]

Ipso facto, any point below the mid-point towards the A’-axis will show elastic demand. Elasticity becomes zero when the demand curve touches the X -axis. Price decreases from $8 to $6, quantity demanded increases from 20 units to 40 units. Price increases from $6 to $8, quantity demanded decreases from 40 units to 20 units. […]