Trading Hero

Around 90% of traders make use of technical analysis in all their stock trades, stock chart patterns are the number one technical analysis tool used by traders. Chart patterns are used in monitoring the market trends and indicating the market movements. Chart patterns are used in monitoring the price movements of all markets irrespective of the asset. The 5 most essential stock patterns will be discussed in this article.

The chart patterns being discussed below are the most prominent and popularly used patterns by traders. They help a great deal in indicating the teens of the market during technical analysis. This article will help you under the most important chart patterns that can be used in your trades during technical analysis.

In every chart pattern, there are two market trends formed. It could be a continuing trend or a price reversal trend. The work of a chart pattern is to help traders identify these trends.
The stock patterns will be divided into two:

• Continuation Patterns
• Reversal Patterns.

Continuation pattern

A continuation pattern is a chart pattern that indicates the momentary pause of a price trend which continues on its trend after a little pause.

Simply put, a Continuation stock pattern can be referred to as a temporary pause in a price trend during a dominant trend. This is a time when a bullish trend pauses for a while during a prevailing uptrend, and also when a bearish trend pauses for a while during a dominant downtrend. As a price pattern is being developed, indicating a price trend can be difficult if there is no price trend confirmation yet. This is why it is advisable to study charts carefully during this time. The chart needs to be studied to indicate any break of the price below the continuation level. As a trader who uses technical analysis in trades, it is important to confirm a price reversal only when the price has completely reversed.

However, if a price trend takes a long time to form, it shows a more significant price movement within the pattern. A price trend is said to continue its trend if the price pattern breaks below the area of continuation in a prevailing bearish trend. It is also a price continuation If the price breaks above the area of continuation in a prevailing uptrend.

Listed below are the top three continuation patterns:

• Ascending Triangles
• Descending Triangles
• A Bullish and Bearish Pennant

Triangles

Triangles chart patterns are one of the most prominent stock patterns used by traders in technical analysis. These chart patterns repeatedly occur in a price chart pattern. This chart patterns trends for a long time and can last for months or weeks. There are three types of triangle chart patterns but we will be looking at the two most essential types.

Ascending triangle

A price chart with this chart pattern is a bullish continuation chart pattern. The pattern implies that price is likely to break out where the lines of the triangle meet. To illustrate this structure, a horizontal line has to be placed on the resistance levels and an ascending line is drawn along the support levels. The horizontal line in this structure is the resistance line.

Descending triangle

This is the opposite of the ascending line. This pattern denotes a downtrend in a bearish market. This chart pattern is drawn with a horizontal line placed at the support levels and drawn along the resistance points. It implies the probability of a bearish breakout.

A bullish and bearish pennant

A bullish pennant pattern
This is a continuation chart pattern that occurs after an asset or trade encounters a huge and abrupt bullish run. It forms when there is a momentary price consolidation, and then the price continues to trend in the same direction using the same velocity.

The bearish pennant
This trade pattern is a continuation pattern that occurs when there the price of a trade abruptly drops. It forms when there is a short price consolidation, just because the price continues to trend lower in its previous direction.

A pennant is referred to as a triangular pattern that is made up of several candle bars. However, it is not the same thing as the ascending, descending, or symmetrical triangle patterns.

Free Account by The Best Broker

Make money by trading stocks.

Discover

Reversal patterns

A reversal pattern is the price pattern that indicates a reversal pattern as a dominant trend. This pattern shows the time when there is a price consolidation in either a bullish or bearish run. The predominant trained pauses for a while before reversing in an opposite trend.

For instance, a bullish trend supported by the strength of the buyers can half, implying an equal strength from both the buyers and the sellers. The trend finally conforms to the sellers and begins a bearish trend.

A distribution pattern is known as a price pattern formed at the market tops. It shows that trade is controlled by sellers. However, price reveals that happen at the bottom of a chart show that the trade is controlled by the buyers. Similar to the continuation patterns, if the price takes a longer time in reversing, the expected market trend will have a stronger momentum.

There are different types of reversal stock patterns used by traders, but we will focus on the top two.
They include:

• Double Top
• Double Bottom

Double top

This is the Opposite of a double bottom. A double top has a structure of M. This pattern is formed when the price of an asset fails to break the resistance points twice. After two unsuccessful attempts, price reverses breaking through the support line and beginning a downward trend.

Double bottom

A double bottom pattern has the shape of the letter W. It shows that the price of an asset has attempted to break through the support levels twice. This pattern is a reversal pattern because it shows the reversal trend. After two unsuccessful attempts to break the support level, the market price begins an upward trend.

Conclusion

Chart patterns are very essential during technical analysis. Chart patterns are like the eyes of the trader in the market sector. These above-mentioned 5 most essential stock patterns are patterns mostly used by stock traders.

Free Account by The Best Broker

Make money by trading stocks.

Discover

Dividend stocks allocate a part of their company’s profits to investors periodically. In America, most dividend stocks pay investors a stipulated amount quarterly. The top investors America sticks also increase their quarterly payments with time evening investors to build a programmed cash inflow. Investors can also decide to reinvest their dividends back into the stock if they have no urgent use for the cash. We will focus on the top 5 stocks with the highest dividend.

As earlier stated, dividend stocks are industries that pay investors a part of the income. These payments are based on the amount invested by the investor. These high dividend companies are highly established companies with several streams of income. These companies also have a track record that shows their consistency in distributing these earnings back to their investors.

These distributed earnings are known as dividends. These dividends can be paid back in two ways, either as cash or as extra stock. Some companies pay their investors every quarter, while others pay every month, or yearly. On some rare occasions, the dividends are paid all at once. Although, dividends are known for their regular form of payments, in some cases of extreme economic drought the payments are paused to conserve funds. 

Investors make use of the company’s payout ratio to know how consistent the company is in paying investors their dividends. The payout ratio is measured by the total amount of dividends divided by the company’s net income. This tells the investor the exact amount the company pays the investors in the form of dividends compared to the total amount the company uses in sustaining the further growth of the company. The ratio is not meant to exceed 100% or read a minus, if it reads a minus that means the company is borrowing funds to pay dividends. This is a red flag indicating the future cut in the dividends being paid. In this article, we will focus on the top 5 high dividend stocks. 

Dividend stock has performed greatly surpassing the wider stock market, as estimated by the S&P 500. The dividend stocks have provided a total income of 18.1% in the last year. This is of no surprise as it has already been established that companies who run the high dividend program are highly established companies. The dividends even help in providing stability to an investor’s portfolio. This is why high dividend stocks are listed as part of the stock trading that requires low-risk. 

Annaly Capital Management Inc. (NLY)

• Payout ratio: 47.6%
• Price: $7.73 (Feb. 2022)
• Market capital: $11.2
• Forward dividend yield: 11.38%
• 1-year total return: 1.8%1

Annaly Capital Management is an industry that specializes in investing and building residential and commercial properties. This company is a diversified capital management firm that invests in different services such as residential real estate, middle-market lending, and agency mortgage-backed securities. The company is worth over $80 billion, with its total assets ranked at $94 billion. On the 2nd of December, Annaly released a report stating that Ilker Ertas Has been promoted to chief investment officer. Erates will be the one to manage all investments placed by Annaly including the allocation of their capital, their development ideas, and total trade operations. Erates previously worked as the company’s head of securitized products

Free Account by The Best Broker

Make money by trading stocks. 

Discover

New Residential Investment Corp. (NRZ)

• Payout Ratio: 56.4%
• Price: $10.53 (Feb. 2022)
• Market Cap: $4.9 billion
• Forward Dividend Yield: 8.55%
• 1-Year Total Return: 16.4%1

New residential investment corporation is a company that specializes in mortgage REIT. It offers capital and services to several financial and mortgage firms. The industry’s investment has a diversified portfolio of mortgage servicing-related properties, residential loans, non-agency trades, and other mortgage-related investments. However, this company only invests in companies that guarantee a consistent stable cash flow. On the 6th of December, the company stated that it has finalized accession of Genesis capital LLC and another related company, a company that specializes in lending capital. As at the period of this new release, Genesis was slated to provide about $2 billion worth of loans. The main aim behind the accession of this company is to enable it to boost the company portfolio of genesis in the U.S. housing sectors mostly in the commercial space sector. However, the terms and conditions of this acquisition were not made public.

AGNC Investment Corp (AGNC)

• Payout ratio: 56.0%
• Price: $15.00 (Feb. 2022)
• Market cap: $7.9 billion
• Forward dividend yield: 9.60%
• 1-Year Total Return: 0.8%1

AGNC investment corporation is a type of mortgage that is overseen internally, it is also a real estate investment trust (REIT) that trades on a leveraged basis with agency MBS. It helps in financing its investments by lending funds on a collateral basis. In January 2022 The company recently stated a $0.12 for monthly common stock dividends. The dividend is to be paid on the 9th of February to their shareholders recorded as of 31 January 2022.

TFS Financial Corp. (TFSL)

• Payout ratio: 69.9%
• Price: $17.71 (Feb. 2022)
• Market cap: $5.0 billion
• Forward dividend yield: 6.38%
• 1-Year Total Return: -2.5%1

The TFS financial firm is a federally chartered stock. It administers its major actions via its unconditionally owned associates. It provides commercial client banking services, entailing mortgage lending, security gathering, and several other categories of financial acids. As of 30th September 2021, The total worth of its consolidated properties is $14.1 billion
and other types of financial services. It had total consolidated assets of $14.1 billion as of Sept. 30, 2021.

Gaming and Leisture Properties Inc. (GLPI)

• Payout ratio: 84.9%
• Price: $43.25 (Feb. 2022)
• Market cap: $10.3 billion
• Forward dividend yield: 6.20%
• 1-Year Total Return: 11.8%1

This company specializes in lending casinos and other entertainment establishments. It has a gaming portfolio of 51 gaming facilities and other similar assets in 17 different states. The company recently released its data earnings for the third quarter in 2021, which was recorded last on 30th September 2021. The net income of the company increased by 17.3℅ in the last year, however, the total revenue reduced by 2.9%. The company’s total income for the last quarter profited from the sale of one of its casinos in July 2021.

Free Account by The Best Broker

Make money by trading stocks. 

Discover

Exchange traded funds provide investors with an opportunity to access a wide variety of companies that are growing quickly by investing in the shares of public firms that are experiencing high growth rates in terms of sales and earnings. They allow investors to diversify their investments thus reducing their level of risk exposure. This article will be examining some of the 5 best future proof EFTs to invest in for the year 2022.

VBTC VanEck Vectors Bitcoin ETF

This Exchange trading fund was launched late last year and is regarded as the cheapest bitcoin-linked ETF that is available on the U.S. market. It is designed in such a way that it has a C-corporation structure which enables it to accomplish its aim of providing long-term investors with a very efficient tax experience.

The VanEck Vectors Bitcoin ETF is actively managed by a very qualified team that is highly knowledgeable along with having decades of experience in the futures markets. The investment objective of this ETF is to find capital appreciation by making investments in bitcoin futures contracts. Furthermore, the ETF provides an exchange traded vehicle that is accessible to investors through which it offers exposure to bitcoin-linked investments. However, the fund refrains from directly investing in bitcoin and other digital assets. One of the aims of this ETF is to simplify the complexities associated with directly owning bitcoin while also offering investors the potential for higher tax efficiency through its C-corporation structure. The total value of the net assets of this ETF is currently valued at $24 million.

iShares Global Clean Energy UCITS ETF

This ETF gives investors exposure to companies involved in the production of energy from the sun, wind, and other renewable sources by providing them with targeted access to clean energy stocks from around the world. The investment objective of this ETF is to monitor the investment results of an index consisting of global equities from the clean energy sector. It is one of the ETFs of the iShares group with the net assets of the fund valued at almost 5 billion dollars.

The fund was initiated in the year 2008 and has grown since then with a current daily volume of over 5 million and a 30-day average volume of more than 7 million. It also has a 30-day median Bid/Ask spread of 0.05% while its benchmark index is the S&P Global Clean Energy Index. The management fee is 0.42% of the invested capital and the investor does not have to incur any additional fee.

Free Account by The Best Broker

Make money by trading stocks.

Discover

iShares Digital Security UCITS ETF

This is the other ETF of the iShares group and its investment objective is to try and give investors a total return while also factoring in both capital and income returns. It mainly focuses on global equities from the technology sector but also offers investors opportunities in the industrial, Real Estate, and Communication Services sectors.

The fund was initiated in the year 2018 and carries a management fee of 0.40% of the invested capital. It is a sustainable investment that is featured on the London Stock Exchange and offers investors over 900 investment options in the global category. The benchmark index of the iShares Digital Security ETF is the STOXX Global Digital Security Index.

VanEck Future of Food ETF

The VanEck Future of Food ETF is an actively-managed ETF that looks for long-term capital growth by focusing its investment on companies involved in Agri-Food technology and innovation which comprises industries and companies that lead, supply, enable, disrupt, or benefit from agriculture as well as food products and services that are new and environmentally sustainable.

The ETF was launched late last year around November and is featured on the New York Stock Exchange. It has a physical ETF structure with total net assets currently valued at just over $2 million. Due to population growth, environmental sustainability initiatives, and evolving consumer preferences, there has been a great demand for Agri-Food innovations and options with a higher level of efficiency, resilience, and sustainability. This has led to the creation of opportunities that this ETF aims to take advantage of.

Also, considering that the agricultural and food sectors are in the nascent stages of what could be a multi-decade transformation, the sector holds a lot of potential that investors can capitalize on through this ETF. Furthermore, the availability of active management makes it possible for growth opportunities to be targeted much more easily in this emerging market.

Rize Environmental Impact 100 UCITS ETF

This ETF looks to direct investment into the 100 most innovative and impactful companies with the potential to benefit from the development and application of solutions that tackle the most urgent climatic and environmental challenges in the world. This consists of leaders and innovators across the categories of clean water, renewables and hydrogen, transportation in terms of electronic vehicles, energy efficiency, waste and the circular economy as well as nature-based solutions. It is the first ETF in Europe that focuses on environmental impact and offers investors exposure to the top 100 companies that constantly develop creative and effective solutions across the aforementioned categories to bring about a positive environmental impact.

This ETF has been structured in such a way that it addresses the six environmental objectives laid out in the EU Taxonomy for Sustainable Activities which are:

1. Climate Change Adaptation
2. The Transition to a Circular Economy
3. Climate Change Mitigation
4. Pollution Prevention and Control
5. The Protection and Restoration of Biodiversity and Ecosystems
6. The Sustainable Use and Protection of Water and Marine Resources

The investment objective of the Rize Environmental Impact ETF is to provide investment results that are proportional to the price and yield performance of the Foxberry SMS Environmental Impact 100 Index even before fees and expenses. This ETF enables investors to benefit from the environmental impact opportunities that the top 100 companies are capitalizing on.

This covers the five best future-proof ETFs that people can invest in for the year 2022 as these ETFs are projected to keep growing and offering more investment opportunities for people.

Free Account by The Best Broker

Make money by trading stocks.

Discover

Oil stocks are a good buy at the moment after recording an $80 per barrel increase in price.
By the end of the month, the production from the Permian basin located in West Texas and New Mexico, which is the largest production unit in the U.S was predicted to top its record before the pandemic. There are a lot of good oil stocks to buy at the moment, but we will be looking at the 5 best Oil stocks.
The oil demand seems to be on the rise as the market ignores the negativity brought about by the omicron Covid-19 variant. Analysts have said that the rise in oil price is not enough a catalyst to boost the oil stick to rapidly increase after several years of equity discipline.

When contemplating the oil sticks to buy and watch, investors must evaluate the ones that are diversified and are concentrated mainly on U.S shale in specific areas such as the Permian Basin. The price of crude oil highly influences oil stocks, particularly shale manufacturers.

In this article, we will be talking about the top 5 best stocks to buy or watch.

Texas Pacific Land (NYSE: TPL)

• Trading Volume: 22.25k
• Market Capital: 8.33B
• Day’s Range: 1034 – 1075
• 52 Week Range: 803 – 1773.95

Texas Pacific was founded in the year 1888, The company is one of the biggest landowners in Texas. The company produces oil and gas and it is its major source of revenue. It also deals in the commercial lease of material sales and land sales. Texas Pacific Land Trust also offers water delivery services like Water sourcing, water treatment, water waste removal, infrastructure growth, and water tracking.
The oil stock has a market capitalization of $3.9 billion with earnings per share of $10 per share. Texas Pacific land trust sells over $32,500 shares in a day. As of 2019, It has produced about $490 million.

TotalEnergies (NYSE: TTE)

• Trading Volume: 2.55M
• Market Cap: 147.90B
• Day’s Range: 56.04 – 56.95
• 52 Week Range: 40.33 – 58.83

Analysts have chosen Total Energy as one of the best picks for European oil majors. TotalEnergies is a French company that deals on oil and gas. The company’s strong increase in its portfolio irrespective of its exposure to low-priced liquid natural gas projects. Analysts stated that the company has an upcoming renewable production project pipeline, and the industry’s way of enterprise is very efficient. Total Energies has a strong balance sheet and can break even with the price of a barrel as low as $25.

The company is also an integrated company that deals with Oil and gas, the company provides refund oil all over the world. In 2020, the company has produced about 1.5 million barrels of oil and a daily 7.2 billion cubic feet of raw gas. The company recorded a reserve of 12.3 billion barrels of oil, 43% of contents are liquids. The company has a facility that produces about 2.0 million barrels daily, especially in Europe. The company provides its products to 65 countries, delivering goods which are mainly chemicals. It also has a 19℅ interest in Russian oil company Novatek.

Free Account by The Best Broker

Make money by trading stocks. 

Discover

EOG Resources (NYSE: EOG)

• Trading Volume: 5.69M
• Market Cap: 65.23B
• Day’s Range: 107.68 – 113.2
• 52 Week Range: 50.08 – 113.2

EOG Resources is a company that deals in the production of oil and gas. It has several properties with U.S shale industries including the Permian Basin, Bakken, and the Eagle Ford. The company recorded end-of-year net reserves of 3.2 billion barrels of oil in 2020. In 2020, It also recorded a net production of a daily average of 754 thousand barrels of oil. It had a ratio of 72% of natural gas liquids and oils, and also a 28% of natural gas.
EOG Resources is well known for its use of advanced technology and huge data to help in drilling procedures, it earned it the name “Apple of the Oil”. EOG resources are capped at $65.23 billion.

The company also has a major acreage in the Permian Delaware Basin, and the south Texas Eagle Ford shale industry.

The company exceeded market analyst expectations in the last three quarters reported in November. EOG stated a specific$2 dividend per share and improved the authorization of its shares to $5 billion.
The company is presently being traded at $98.30, and it is a huge buy.

Teekay Tankers (NYSE: TNK)

• Trading Volume: 17.24K
• Market Cap: 360.02M
• Day’s Range: 10.37 – 10.77
• 52 Week Range: 9.89 – 16.09

Teekay Tankers is a globally top marine energy transportation company, it was established in the year 1973. The company produces over 80 barrels and delivers a big fleet of Liquefied Natural gas (LNG) and Liquefied Petroleum Gas (LPG) barrels.
The energy company’s market capitalization is at 360.02 million dollars, with a volume of $17.24 thousand. It has a 52 week high of $16.9. Teekay is a high liquidity stick and trades for more than 488,480 shares daily. In 2019, It has recorded a revenue of $943 million.

PetroChina Co. LTD. (PTR)

PetroChina Co. Ltd. (PTR) isthe biggest company producing oil and gas in China. Irrespective of the concerns about the U.S listed Chinese stocks due to issues based on regulations and probable delistings. PetroChina has managed to increase its share by 70% year to date. Market analysts have stated that PetroChina’s income stream is its natural gas earnings especially now that many pipeline assets have been divested in 202. Analysts predicted that the revenue growth of 40% generated in 2021 will reduce to just 4% growth in 2022, but he insists that the stock is still affordable and cost-effective at its currency price. PTR stock is a buy and should be placed on an investor’s watchlist.

Conclusion

The above-mentioned oil sticks are a huge buy, and should be out in the watchlist, however, investors are advised to watch out for any oil news that could impress the performance of any stock. And also invest carefully and with caution.

Free Account by The Best Broker

Make money by trading stocks. 

Discover