Frequently Asked Questions

Everything you need to know about technical analysis, trading, and using QuantivFlow

General Trading Questions

What is technical analysis?

+

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Unlike fundamental analysis, which examines a company's financials, technical analysis focuses on charts and patterns to predict future price movements.

Technical analysts believe that price movements follow trends and that history tends to repeat itself due to recurring market psychology.

How much money do I need to start trading?

+

The minimum amount varies by broker and strategy, but we recommend:

  • Day Trading: Minimum $25,000 (required by law in the U.S. for pattern day traders)
  • Swing Trading: Minimum $2,000-$5,000 for proper diversification
  • Long-term Investing: You can start with as little as $100

Most importantly, only trade with money you can afford to lose while you're learning.

What's the difference between day trading and swing trading?

+

Day Trading: Opening and closing positions within the same trading day. Day traders never hold positions overnight, avoiding gap risk but requiring constant monitoring.

Swing Trading: Holding positions for several days to weeks to capture larger price moves. Requires less screen time but exposes traders to overnight and weekend risks.

Swing trading is generally more suitable for beginners as it's less stressful and doesn't require full-time attention.

Can I make a living from trading?

+

Yes, but it's extremely difficult and takes years of practice. Statistics show that 90% of day traders lose money in the first year. Those who succeed typically:

  • Have 1-3 years of experience and consistent profitability
  • Maintain strict risk management and discipline
  • Have sufficient capital (at least $50,000-$100,000)
  • Treat trading as a business, not gambling

Start part-time while keeping your job. Only consider full-time trading after proving consistent profitability for at least 12 months.

Technical Indicators & Analysis

What are the best technical indicators for beginners?

+

The most reliable indicators for beginners are:

  • Moving Averages (SMA/EMA): Simple to understand and identify trends
  • RSI (Relative Strength Index): Shows overbought/oversold conditions
  • MACD: Excellent for spotting trend changes and momentum
  • Support and Resistance: The foundation of all technical analysis
  • Volume: Confirms the strength of price movements

Start with 2-3 indicators and master them before adding more. Too many indicators create confusion and conflicting signals.

How do I know when RSI is overbought or oversold?

+

RSI ranges from 0 to 100:

  • Above 70: Overbought (potential sell signal)
  • Below 30: Oversold (potential buy signal)
  • Around 50: Neutral

Important: Overbought doesn't mean "sell immediately." In strong uptrends, RSI can stay overbought for extended periods. Always combine RSI with other factors like trend direction and support/resistance levels.

What time frame should I use for technical analysis?

+

It depends on your trading style:

  • Day Trading: 1-minute, 5-minute, 15-minute charts
  • Swing Trading: 1-hour, 4-hour, daily charts
  • Position Trading: Daily, weekly charts

Best Practice: Use multiple timeframes. Analyze the daily chart for overall trend, then zoom into shorter timeframes for entry points. This is called "top-down analysis."

How accurate is Fibonacci retracement?

+

Fibonacci retracement is not "accurate" in a predictive sense, but it identifies levels where many traders watch for reactions. This creates self-fulfilling prophecies.

The 61.8% (golden ratio) and 50% levels are particularly significant. However, Fibonacci works best when combined with other technical factors:

  • Confluence with support/resistance
  • Moving average alignment
  • Volume confirmation
  • Candlestick patterns at Fib levels

Never trade Fibonacci levels alone—use them as part of a complete trading system.

What's the difference between SMA and EMA?

+

SMA (Simple Moving Average): Calculates the average price over a period, giving equal weight to all data points.

EMA (Exponential Moving Average): Gives more weight to recent prices, making it more responsive to new information.

When to use each:

  • SMA: Better for identifying major support/resistance and long-term trends
  • EMA: Better for short-term trading and quicker signals

Many traders use both: EMA for entries and SMA for overall trend direction.

Risk Management

What is the 1% rule in trading?

+

The 1% rule states that you should never risk more than 1% of your trading capital on a single trade. For example, with a $10,000 account, you'd risk no more than $100 per trade.

Why it works:

  • You can survive 50 consecutive losses without being wiped out
  • Reduces emotional pressure on each trade
  • Allows you to stay in the game long enough to develop skills
  • Forces proper position sizing discipline

Professional traders typically risk 0.5-1% per trade. New traders should start at 0.5% or less.

Where should I place my stop loss?

+

Stop loss placement should be based on technical levels, not arbitrary percentages:

  • Below support (long trades): Place below the most recent swing low or support level
  • Above resistance (short trades): Place above the most recent swing high or resistance level
  • ATR-based: Use Average True Range (1.5-2x ATR) for volatile markets
  • Pattern-based: Below the neckline of head & shoulders, or triangle boundaries

Golden Rule: Never move a stop loss further away from entry. If you're stopped out, accept the loss and move on.

What is a good risk-reward ratio?

+

A minimum 1:2 risk-reward ratio is recommended (risk $1 to make $2). With this ratio, you only need to be right 33% of the time to break even.

Example: If your stop loss is $50 away from entry, your target should be at least $100 away.

Professional traders often target 1:3 or higher. The better your risk-reward ratio, the lower your required win rate:

  • 1:2 ratio: Need 34% win rate to profit
  • 1:3 ratio: Need 25% win rate to profit
  • 1:4 ratio: Need 20% win rate to profit

Should I use trailing stops?

+

Trailing stops are excellent for locking in profits while allowing winners to run. They automatically move your stop loss as price moves in your favor.

When to use:

  • Strong trending markets
  • When a trade is significantly profitable (2-3x your risk)
  • Breakout trades with momentum

When to avoid:

  • Choppy, range-bound markets (you'll get stopped out frequently)
  • When you have a clear profit target in mind

A common approach: Use a fixed target for partial profits, then trail a stop on the remaining position.

About QuantivFlow

What is QuantivFlow and how does it work?

+

QuantivFlow is a stock analysis tool for swing and position traders. Enter a ticker and one screen gives you:

  • Three independent signal algos - Trend, Rebound and Patterns - each with its own verdict on three horizons (Short, Mid and Long term) and its historical track record on that stock
  • Chart patterns drawn on the chart - cup and handle, head and shoulders, triangles, flags and more - with the breakout marked and the measured price target drawn ahead of the last candle
  • The indicator breakdown behind the signals: RSI, MACD, ADX, moving averages, Bollinger Bands, Stochastic, ATR, volume, support and resistance, and Fibonacci levels
  • News, analyst coverage and fundamentals for the stock
  • An AI insight that reads all of the above and writes the bottom line, a view per horizon and the risks

Each algo answers one question. Trend says whether the stock is in a BUY or has exited. Rebound says whether a dip is worth buying. Patterns says which chart shape is forming and whether it broke out. Every verdict comes with the algo's win rate, average gain and trade list on that stock, so you can judge how much weight to give it.

What are the Trend, Rebound and Patterns algos?

+

QuantivFlow runs three independent algos, each looking at a stock differently:

  • Trend rides strong uptrends across three horizons (Short, Mid and Long term). Losers are cut fast and winners can run for 6-8 weeks. Most trades lose small and a few win big.
  • Rebound buys sharp short-term dips in stocks that are still in long-term uptrends, on the Short and Mid term horizons. Most trades win (historically about 69% short term and 76% mid term), but gains are small, and every trade resolves within days or weeks by design.
  • Patterns finds classic chart shapes - cup and handle, head and shoulders, double tops and bottoms, triangles, wedges, flags, rectangles and channels - marks the breakout or breakdown, and draws the measured price target on the chart.

All three are shown free on every stock page, on the website and in the app. Premium unlocks the full market-wide feeds (Recent Signals, Rebound candidates and the Patterns feed), Rebound and indicator alerts, and the complete Algo Portfolio.

The algos can legitimately disagree on the same stock. A Rebound dip-buy during a Trend WAIT is normal, and a pattern can break out while Trend is still waiting. Recent Signals has Trend, Rebound and Patterns tabs, and the Performance hub has an algorithm filter to compare their historical results.

What chart patterns does QuantivFlow detect?

+

The Patterns algo scans every stock for 19 classic shapes:

  • Reversals: cup and handle, head and shoulders, inverse head and shoulders, double top, double bottom
  • Triangles and wedges: ascending, descending and symmetrical triangles, rising and falling wedges
  • Continuations: bull and bear flags, bull and bear pennants, rectangles
  • Channels and trend lines: ascending and descending channels, uptrend and downtrend lines

Each pattern is drawn directly on the chart, on the horizon where it formed (daily, weekly or monthly candles). When the price breaks out of the pattern - or breaks down from it - the break is marked and a measured target is drawn ahead of the last candle, so you can see how far the pattern "should" carry. The Patterns feed lists the latest breaks across the market, and the stock page keeps a track record of how often that stock's patterns reached their target.

A pattern stays on the chart only while the detector still sees it on the current candles. Shapes that fall apart are removed, so what you see is always a live read, not a stale drawing.

What are the Short, Mid and Long term horizons?

+

Every analysis runs on three horizons, and every algo gives a separate answer on each:

  • Short term uses daily candles - setups that play out over days to a few weeks
  • Mid term uses weekly candles - moves that play out over weeks to months
  • Long term uses monthly candles - the big picture, for positions held for months

Trend and Patterns run on all three horizons. Rebound runs on Short and Mid term only, because a dip-buy is by definition a short-lived trade. The horizon chips on the stock page switch the signals, the chart and the patterns to that horizon.

Is QuantivFlow free to use?

+

Yes. Every plan - guest, free account or Premium - gets the full stock screen: the three algos on three horizons, the indicator breakdown, chart patterns with targets and Fibonacci, and the AI insight. What differs is how much you can use it:

  • Guest (no account): 2 analyses a day on the website, 1 in the app
  • Free account: 2 analyses a day, a watchlist of 4 stocks with 4 automatic alerts each, 5 alerts of your own, and the top 3 stocks of each algo in the Algo Portfolio
  • Premium: unlimited analyses, unlimited watchlist, 11 automatic alerts per stock, the full signal feeds and the complete Algo Portfolio

Limits reset every 24 hours. The full comparison is on the pricing page.

What does Premium include and how much does it cost?

+

Premium is the algos working for you across the whole market instead of one stock at a time. It unlocks:

  • Unlimited analyses and an unlimited watchlist
  • The full Recent Signals feed on every horizon (Trend, Rebound and Patterns), the Rebound candidates list and the complete Algo Portfolio - every stock, every trade
  • 11 automatic alerts per watchlist stock: Trend signals and pattern breaks (also free) plus daily moves of 3% or more, Rebound signals, RSI oversold or overbought, the price crossing SMA 20 and ADX above 25
  • Unlimited alerts of your own, including indicator and Rebound alerts

Premium costs $9.99 a month or $59.99 a year (about $5 a month). New subscribers on Google Play can start with 5 days for $0.99. Prices are in USD; the store shows your local price. Premium is purchased in the app and unlocks everywhere you sign in with the same account, including this website. Cancel anytime from Google Play or the App Store. Details on the pricing page.

How do the watchlist and automatic alerts work?

+

Add a stock to your watchlist and it arrives with alerts already set - you never type a condition. A free account gets 4 alerts per stock: Trend algo signals on all three horizons and Patterns algo breakouts and breakdowns on the Short term. Premium adds 7 more per stock: daily moves of 3% or more, Rebound algo signals, RSI oversold or overbought, the price crossing SMA 20 and ADX above 25.

Alerts arrive as push notifications from the app and are listed in its Alerts tab, where you can pause, edit or delete any of them. The watchlist shows a live quote and a signal chip per horizon for every stock, and it is the same list on the website and in the app.

When do the signals update?

+

The stock page is analyzed on demand: every analysis fetches the latest candles, so during market hours the Short term view reflects the current day's price action so far.

The market-wide feeds are rebuilt every evening after the U.S. close. The Trend scan runs first, then Patterns, then Rebound, and the Algo Portfolio is rebalanced last. Watchlist alerts and signal pushes go out as the scans find them; nothing is sent during night-time quiet hours.

What is the Algo Portfolio?

+

The Algo Portfolio is what you would be holding if you followed Trend and Rebound mechanically across the whole market this year: every position each algo opened, with entry date, days held and P&L, marked to the latest close and rebuilt every evening on the server after the scans. It is a live record, not a backtest - a position appears when the algo fires and leaves when the algo exits.

Free accounts see the top 3 stocks per algo and horizon. Premium sees every stock and every trade, including this year's closed-trade record.

What is the AI insight?

+

Every analysis ends with an AI insight: a short written read of the stock, generated by a language model from the analysis itself - price action, the three algos, chart patterns, news, earnings, RSI, MACD, moving averages, ADX and the bigger picture. It opens with the bottom line, then a short-, mid- and long-term view with an entry zone, target and stop, and the risks that would invalidate the thesis.

It is generated fresh for each stock and horizon once a day and is part of your analysis quota. Treat it like any other analyst note: it can be wrong, it knows nothing beyond the inputs above, and it is not investment advice.

How are the win rates and the Performance hub calculated?

+

Every win rate, average gain and trade count on QuantivFlow comes from replaying the algo's rules over historical candles: each signal is entered and exited exactly as the algo would have, and the results are added up. The Performance hub shows this across the market, with filters for algo, horizon and period; the stock page shows the same for that stock, including the position that is open right now.

These are the algos' results, not users' results, and they do not include commissions, slippage or taxes. Past performance does not guarantee future results.

Is there an official QuantivFlow mobile app?

+

Yes. QuantivFlow has an official app for iPhone and Android, published by QuantivFlow. Both are free to download:

Note that apps with similar names (like "Quantum Flow" or "Qflow") are not affiliated with QuantivFlow - the only official apps are the two listings above.

What markets does QuantivFlow support, and where does the data come from?

+

QuantivFlow analyzes U.S.-listed stocks and ETFs on the NYSE, Nasdaq and AMEX: enter any ticker and you get the full analysis. The nightly scans that feed Recent Signals, the Rebound candidates, the Patterns feed and the Algo Portfolio cover the large caps - the S&P 500, the Nasdaq-100 and the Dow 30, plus the stocks users are following - so a feed row is usually a large or mid cap, while the stock page works for any U.S. ticker.

Prices, candles, news and fundamentals come from Yahoo Finance. Quotes refresh while the market is open but may be delayed by the exchange; they are not a substitute for your broker's real-time feed.

Can I use QuantivFlow for day trading?

+

QuantivFlow is built for swing and position trading - holding periods of days to months. The algos run on daily, weekly and monthly candles, and the analysis is refreshed when you open a stock, not tick by tick.

Day traders can still use it to:

  • Pick stocks that are in a strong trend or at a fresh pattern breakout before the open
  • Check the broader market direction and the overbought/oversold picture
  • Read the chart on intraday intervals in the full-screen chart

But the signals themselves are not intraday signals, and quotes may be delayed, so it is not a tool for scalping or 1-5 minute charts.

How do I sign in, cancel Premium or delete my account?

+

Sign in: create a free account with Google or with your email and a password. One account works on the website, the iPhone app and the Android app, and your watchlist, alerts and Premium follow it everywhere.

Cancel Premium: subscriptions are billed by Google Play or the App Store, so you cancel there - in Google Play under Subscriptions, or on iPhone in Settings under Subscriptions. Premium stays active until the end of the period you paid for, and nothing is charged after that.

Delete your account: in the app, open Profile and tap Delete account, or follow the steps on the delete account page. Your account and all its data are deleted immediately and permanently.

Should I follow QuantivFlow signals blindly?

+

No. QuantivFlow is a tool to assist your decision-making, not replace it. Always:

  • Combine our signals with your own analysis and risk tolerance
  • Consider broader market conditions and news events
  • Use proper risk management (stop losses, position sizing)
  • Understand the indicators and why signals are generated
  • Practice with paper trading before risking real money

Technical analysis is not foolproof - it's about probability, not certainty. No tool can guarantee profitable trades. QuantivFlow is not a financial advisor, and nothing on it is investment advice.

Trading Strategy

How do I build a trading plan?

+

A comprehensive trading plan should include:

  • Trading Goals: What you want to achieve (realistic monthly/yearly targets)
  • Markets and Timeframes: What you'll trade and when
  • Entry Rules: Specific conditions for entering trades
  • Exit Rules: When to take profits and cut losses
  • Position Sizing: How much to risk per trade (1% rule)
  • Risk Management: Maximum daily/weekly losses, number of concurrent trades
  • Trading Schedule: When you'll analyze markets and execute trades
  • Performance Review: How often you'll review and adjust your strategy

Write it down and follow it consistently. A mediocre plan followed consistently beats a perfect plan followed sporadically.

What is divergence and why is it important?

+

Divergence occurs when price moves in one direction while an indicator (like RSI or MACD) moves in the opposite direction. This signals weakening momentum and potential reversals.

Bullish Divergence: Price makes lower lows while RSI/MACD makes higher lows → Potential upward reversal

Bearish Divergence: Price makes higher highs while RSI/MACD makes lower highs → Potential downward reversal

Divergence is one of the most reliable reversal signals, but always combine it with other factors before trading.

How long does it take to become a profitable trader?

+

There's no fixed timeline, but realistic expectations are:

  • 3-6 months: Understanding basics, learning indicators and chart reading
  • 6-12 months: Developing and testing strategies, paper trading
  • 12-24 months: Achieving consistent profitability with real money
  • 2+ years: Mastering psychology and achieving reliable income

Many traders give up during the first year. Success requires patience, discipline, continuous learning, and acceptance that losses are part of the process.

Key: Focus on education and skill development, not quick profits.

Still Have Questions?

Explore our comprehensive courses at QuantivFlow Academy or reach out to our team

Visit Academy Contact Us