Technical analysis

Technical analysis includes researching stock price charts and various indicators derived from (basic) prices in order to predict the development of the market.

This graphic extrapolation method is applicable to all types of markets: indices, stocks, interest rates, commodities…, so it is not limited to the stock market (stock market); once the supply and demand meeting determines the price, the same tools and methods can be applied to any Type of underlying asset.

The main tool of the technical analyst is graphics, which can visualize and analyze the underlying assets.

The accepted purpose and reason for existence of technical analysis is to predict trends and signs of trend reversal. This is a question of determining market conditions (significant numbers and/or signals given by mathematical tools) that statistically produce the same results.

Technical analysis does not pretend to be an accurate science. It is closer to human science, because its research object is directly focused on the understanding of market psychology.

Technical analysis was first used by the Japanese around the 17th century for the rice market. They introduced a specific way to draw the price: the Japanese candlesticks. It helped them aggregate the price for a given period.

Technical charting theories are built on a few main assumptions. It partly explains why it is also a very controversial topic.

Breakout: The Market Tells You To Take a Trade

Breakout are trade opportunity which trigger when an asset's price above or below a resistance or support level.It signals it can be time to open a position. It also helps frame where you should / could place your stop loss. What is a breakout? Breakout in trading...

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Trade with the trend: Effective & Simple

Trade with the trend: Effective & Simple

Trend trading, also known as trend following, is a trading strategy based on the assumption that the current trend is likely to continue and the stock will also move in the same direction.There are three types of trend: uptrend, downtrend and sideway.An uptrend is...

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Line Chart: Why is it useful for traders?

Line Chart: Why is it useful for traders?

A line chart is the simplest and most basic type of stock chart used to analyze financial markets.The line chart only plots the closing price of the underlying security.It has a line connecting the dots created by the close price. A line chart is the simplest and most...

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Backtesting: The method to check your strategy

Backtesting: The method to check your strategy

Backtesting is a simulation of the past. You take the data from the past and use it to predict what would have happened if you had used a certain trading strategy.A trading system is a set of rules that tells you when to buy and sell. A backtest is a way to see if the...

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Renko Chart: A way to capture big moves

Renko Chart: A way to capture big moves

Charts are important in forex trading. It is possible to effectively trade forex today without using a chart. One of the most popular forex charting styles is the Japanese chart, Renko. Renko charts are great in analyzing the market from a completely different point...

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Point and Figure (P&F) Chart: Complete Guide

Point and Figure (P&F) Chart: Complete Guide

If the price of an asset moves up by a certain amount, then it will form an X.If the price of an asset moves down by a certain amount, then it will form an O. Xs and Os stack on top of each other, and will often form a series of Xs or Os. The size of the box is...

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Candlestick Chart: All traders shoud know

Candlestick Chart: All traders shoud know

Candlestick charts are very popular.It shows 4 prices for every fixed period:Open priceClose priceHighest price for the sessionLowest price traded during the sessionTraders use the candlestick chart to determine where price is heading based on previous patterns. What...

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How to best use the Kagi Chart?

How to best use the Kagi Chart?

Kagi chart is a kind of chart that tracks the price movements of a security. While price and time appear on traditional charts, with Kagi charts, only the price is important.A Kagi chart plots price like a snake, continuously. When the price falls, the line appears...

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Heikin Ashi Chart: Learn how to highlight trends

Heikin Ashi Chart: Learn how to highlight trends

The Heikin-Ashi chart helps traders filter out market noise.Rather than using the open, high, low, and close like standard candlestick charts, this technique uses a modified formula based on two-period averages.Traders use the Heikin Ashi technique traders to easily...

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TRIX Indicator: How to trade with it?

TRIX Indicator: How to trade with it?

The Triple Exponential Moving Average (TRIX) helps investors determine the price momentum and identify oversold and overbought signals in a financial asset.It is composed of 3 main components: Zero line, TRIX line, Percentage Scale What is the TRIX Indicator? The...

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Chaikin Oscillator: A great tools for traders?

Chaikin Oscillator: A great tools for traders?

The Chaikin oscillator measures the Accumulation/Distribution Line of MACD.A cross above the ADL indicates that investors are accumulating (buying). Price follows volume, based on an old investing axiom. When traders buy a large number of shares of a stock that appear...

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Hull Moving Average Indicator: Full Guide

Hull Moving Average Indicator: Full Guide

The Hull moving average indicator or HMA indicator helps to identify the current trend in the market.It is an extremely fast and smooth moving average. The Hull moving average indicator or HMA indicator helps to identify the current trend in the market. Allan Hill...

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Schaff Trend Cycle (STC) indicator: Full Guide

Schaff Trend Cycle (STC) indicator: Full Guide

The Schaff Trend Cycle (STC) indicator is an oscillator.It helps to identify the market trends with improved speed and accuracy. The Schaff Trend Cycle (STC) indicator is an oscillator indicator that helps to identify the market trends with improved speed and...

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Implied Volatility (IV): What is it?

Implied Volatility (IV): What is it?

Implied volatility (IV) is a measure that helps traders to understand the chances of changes in the prices of a given security.In options, IV is the underlying instrument’s volatility. Implied Volatility? What is it? Implied volatility (IV) is a measure that helps...

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Divergence: Everything Traders Should Know

Divergence: Everything Traders Should Know

Divergences occur in the market when price doesn't move in the same way as an indicator.If price makes a new high/low but the indicator does not, it creates a divergence.It helps traders spot moments where price move is not a strong/weak as it looks to be.It is a...

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Support & Resistance: Definition & Tactics

Support & Resistance: Definition & Tactics

Support and resistance levels represent areas where we can anticipate a price reaction of an asset.Prices regularly stop falling and bounce back up at the support level.Prices stop rising and take a dip back at the resistance level. Support and resistance concept is...

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Long Line candlestick pattern: How to trade it?

Long Line candlestick pattern: How to trade it?

The Long Line candlestick pattern is a 1-bar pattern.It simply consists of a long body candle.It can be bearish or bullish. What is a long line candle?  Candlesticks provide different visual hints on the trading charts for a better and easy understanding of the...

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Market Gap: What is it? How to trade it?

Market Gap: What is it? How to trade it?

A gap appears on the technical analysis chart when there is a unfilled area. It shows there was no trading activity in that area.It happens when price closes at a level and open at a different level (higher or lower).There are different types of gaps: breakaway gap,...

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Market Top and Market Bottom: Full Guide

Market Top and Market Bottom: Full Guide

TopIt's a transition from buying pressure to selling pressure is known as the market top.It often forms a double top (price checks the previously established extreme high).BottomThe market bottom is the end of the bearish or downward trend and the beginning of a...

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Channel Pattern: What is it? How to trade it?

Channel Pattern: What is it? How to trade it?

The channel pattern is a technical analysis pattern that capitalizes on the trending tendencies of the market.It is also known as price channel.This pattern appears in the market when price oscillates between two lines with the same slope.It can be a rising channel or...

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Flag Pattern: What is it? How to trade it?

Flag Pattern: What is it? How to trade it?

The Flag pattern is a continuation pattern. Its formation is a strong sign of consolidation (price stops to trend for a while to build back momentum).It is identifiable with 3 components: the flagpole, the flag (the consolidation part) and the continuation. The flag...

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Alternate Bat harmonic pattern: Definition

Alternate Bat harmonic pattern: Definition

The Alternate Bat pattern is popular for incorporating the 1.13XA retracement.Firstly, an important factor is the B point retracement that must be 0.382 retracements or it must be less of the XA leg. Furthermore, it only utilizes a 2 or more BC...

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Stalled candlestick pattern: Complete Guide

Stalled candlestick pattern: Complete Guide

The stalled candlestick pattern is a three-bar pattern that predicts an upcoming reversal of the trend in the market. Although it is usually a bearish reversal pattern, yet there are strong possibilities that a bullish variant of the stalled pattern may also appear...

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Modified Hikkake Candlestick Pattern

Modified Hikkake Candlestick Pattern

The modified Hikkake candlestick pattern is the more specific and upgraded version of the basic Hikkake pattern.The difference with the normal pattern is that the "context bar" is used prior to the inside price bar. It consists of a context bar, an inside bar, a fake...

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Short Line candlestick pattern: Definition

Short Line candlestick pattern: Definition

The Short Line candlestick pattern is a 1-bar very simple to understand pattern.It simply consists in a candle with a short body.There are various kind of specific variations of the short line pattern (doji, hammer, hanging man, shooting star). Let's go in-depth about...

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High Wave Candlestick Pattern: Full Guide

High Wave Candlestick Pattern: Full Guide

High wave is a 1-bar candlestick pattern that has very long upper and lower shadows and a small real body.It shows indecision in the market. Statistics to prove if the High Wave pattern really works A lot of candlestick traders...

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Stick Sandwich candlestick pattern

Stick Sandwich candlestick pattern

A stick sandwich is a 3-bar pattern.The closing prices of the two candlesticks that surround the opposite colored candlestick have to be the same. Statistics to prove if the Stick Sandwich pattern really works What is the Stick...

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On-neck candlestick pattern: What is it?

On-neck candlestick pattern: What is it?

The on-neck candlestick pattern is a 2-bar continuation pattern.Closing prices of the second candle is nearly the same than first candle high/low forming a horizontal neckline. Statistics to prove if the On-neck pattern really works ...

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In-neck candlestick pattern: Full Guide

In-neck candlestick pattern: Full Guide

The in-neck candlestick pattern is a 2-bar continuation pattern.Closing prices of both candles are the same or nearly the same forming a horizontal neckline. Statistics to prove if the In-neck pattern really works The in-neck...

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Tri-star Candlestick Pattern: Complete Guide

Tri-star Candlestick Pattern: Complete Guide

The tri-star candlestick pattern is a 3-bar trend reversal pattern.There must be a clear and defined trend in the market. Three consecutive Doji candles must appear. The second Doji candle must create a gap below the first and third Doji candles creating a...

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Kicking candlestick pattern: Full Guide

Kicking candlestick pattern: Full Guide

The kicking candlestick pattern is a 2-bar reversal pattern.It is made of two opposite side marubozus separated by a price gap. Statistics to prove if the Kicking pattern really works The kicking candlestick pattern is a two-bar...

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Concealing Baby Swallow candlestick pattern

Concealing Baby Swallow candlestick pattern

The concealing baby swallow candlestick pattern is a 4-bar bullish reversal pattern.The first candle must be a Marubozu which appears during a trend. The second candle must also be a same color Marubozu. It opens within the body of the previous candle and closes...

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Counterattack candlestick pattern

Counterattack candlestick pattern

The counterattack candlestick pattern is a reversal pattern that indicates the upcoming reversal of the current trend in the market. There are two variants of the counterattack pattern, the bullish counterattack pattern and the bearish counterattack pattern. The...

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Breakaway candlestick pattern: Full Guide

Breakaway candlestick pattern: Full Guide

The breakaway candlestick pattern is a five bar reversal candlestick pattern.It can be bullish or bearish.The first candle must be a long candle.The next three candles must be spinning tops. The second candle must also create a gap between the first and...

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Ladder Bottom candlestick pattern: Definition

Ladder Bottom candlestick pattern: Definition

The ladder bottom candlestick pattern is a 5-bar bullish reversal pattern.It forms following these characteristics:The first three long black candlesticks, resembling three black crows formation, with successive lower opens and closeThe fourth is also a black...

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Three White Soldiers Candlestick Pattern

Three White Soldiers Candlestick Pattern

The three white soldiers candlestick pattern is a 3-bar bullish pattern.It has 3 long green candles, each making new higher high.Each candle's body should be approximately the same size. Statistics to prove if the Three White Soldiers pattern really works...

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Advance Block Candlestick Pattern

Advance Block Candlestick Pattern

The advance block candlestick pattern is a 3-bar bearish reversal pattern.It has three long green candles with consecutively higher closes than the previous candles.Each candle has a shorter body than the previous one. Statistics to prove if the Advance Block pattern...

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Unique Three River Candlestick Pattern

Unique Three River Candlestick Pattern

The unique three river bottom candlestick pattern is a bullish reversal pattern.It occurs during a downtrend in the market. Statistics to prove if the Unique Three River pattern really works What is the unique three river...

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Downside Gap Three Methods pattern: Definition

Downside Gap Three Methods pattern: Definition

The downside gap three methods is a 3-bar candlestick pattern.It appears during a downtrend.The first two candles have a gap down between them while the third candle covers the gap between the first two. Statistics to prove if the Downside Gap Three Methods pattern...

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Harami Cross candlestick pattern: What is it?

Harami Cross candlestick pattern: What is it?

The harami candlestick pattern consists of two candlesticks.The first candle is a big one and the second candle is a doji, contained within the first one's body. Statistics to prove if the Harami Cross pattern really works What...

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Tasuki gap candlestick pattern: What is it?

Tasuki gap candlestick pattern: What is it?

The Tasuki gap candlestick pattern is a three-bar continuation pattern.The first two candles have a gap between them.The third candle then closes the gap between the first two candles.  Statistics to prove if the Tasuki Gap pattern really works...

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Matching Low candlestick pattern: Complete Guide

Matching Low candlestick pattern: Complete Guide

The matching low candlestick pattern is a 2-bar bullish reversal pattern. It occurs during a downtrend.As his name suggests, both lows from the 2 candles are equal. Statistics to prove if the Matching Low pattern really works ...

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Upside Gap Two Crows Candlestick Pattern

Upside Gap Two Crows Candlestick Pattern

The upside gap two crows candlestick pattern is a 3-bar bearish reversal pattern.It appears during an uptrend. Statistics to prove if the Upside Gap Two Crows pattern really works What is the upside gap two crows candlestick...

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Down-Gap Side By Side White Lines Pattern

Down-Gap Side By Side White Lines Pattern

The down-gap side by side white lines candlestick pattern is a 3-bar bearish continuation pattern.It appears during a downtrend. Statistics to prove if the Down-Gap Side By Side White Lines pattern really works What is the...

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Up-Gap Side By Side White Lines Pattern

Up-Gap Side By Side White Lines Pattern

The up-gap side by side white lines candlestick pattern is a 3-bar bullish continuation pattern.The first and second lines are separated by a bullish gap. Statistics to prove if the Up-Gap Side By Side White Lines pattern really works [displayPatternStats...

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Ladder Top candlestick pattern: Complete Guide

Ladder Top candlestick pattern: Complete Guide

The Ladder Top candlestick pattern is a 5-bar bearish reversal pattern that appears at the end of a bullish trend.You can identify it with the following characteristics: The first three candles are always white with long real bodies opening and closing above the open...

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Identical Three Crows Candlestick Pattern

Identical Three Crows Candlestick Pattern

The identical three crows candlestick pattern is a 3-bar bearish reversal pattern.It occurs during an uptrend.It is made of three consecutive bearish candlesticks. Statistics to prove if the Identical Three Crows pattern really works [displayPatternStats...

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Thrusting candlestick pattern: What is it?

Thrusting candlestick pattern: What is it?

The Thrusting candlestick pattern is a two-bar pattern.The second candle gaps up/down and then retrace to close within the 1st candle's body. Statistics to prove if the Thrusting pattern really works What is the Thrusting...

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Upside Gap Three Methods Candlestick Pattern

Upside Gap Three Methods Candlestick Pattern

The upside gap three methods candlestick pattern is a 3-bar bearish continuation pattern.It has 2 green candles and a red one.The second candle gaps above the first one. Statistics to prove if the Upside Gap Three Methods pattern really works [displayPatternStats...

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Two Crows candlestick pattern: What is it?

Two Crows candlestick pattern: What is it?

The Two Crows candlestick pattern is a three-line bearish reversal pattern.How to identify the pattern:The market must be in an uptrend. The first candle must be a long white candle. The second candle is a short black candle that starts with an...

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Broadening Top Pattern: Full Guide

Broadening Top Pattern: Full Guide

The broadening top pattern is a bearish reversal pattern.It's tougher to trade than other classical patterns as lows and highs get taken out one by one.It can also be called the "megaphone pattern". What is the broadening top pattern?  The broadening top pattern...

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Trendlines: What is it? How to trade with it?

Trendlines: What is it? How to trade with it?

Trendlines connect two price points at least and may extend further forward to indicate support and resistance areas.It helps traders understand the trend and possible reversals. Trendlines are an indicator that helps to identify and confirm trends. It is a simple but...

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Chande Kroll Volatility Stop Indicator: Tutorial

Chande Kroll Volatility Stop Indicator: Tutorial

The Chande Kroll Stop indicator is made of two lines.It automatically allows placement of protective stops based on both upward and downward volatility. Tushar Chande and Stanley Kroll suggested the Chande Kroll Stop indicator in their book “The New Technical Trader”....

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Volume Price Trend Indicator: Full Guide [2020]

Volume Price Trend Indicator: Full Guide [2020]

The Volume Price Trend is a volume momentum indicator.It makes use of both percentage changes in price and volume. It uses them to confirm the strength of the trend in price. The volume price indicator adds or subtracts multiples of a percentage change in recent stock...

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Williams Fractal Indicator: Full Guide

Williams Fractal Indicator: Full Guide

The Williams Fractal indicator detects patterns known as fractals.The fractals are made of five or more bars.It helps traders spot potential bullish and bearish price reversals. Traders are integrating new methods into their market analysis to get an edge. This...

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Williams Alligator Indicator: The Complete Guide

Williams Alligator Indicator: The Complete Guide

The Williams Alligator indicator is composed of 3 lines. Each line is a Moving Average is a different period (5-8-13).It helps traders understand the market trend and potential reversal. When the fastest line is above the middle one which is above the slow one, trend...

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Commodity Channel Index Indicator: Full Guide

Commodity Channel Index Indicator: Full Guide

The Commodity Channel Index is a momentum-based indicator.It helps traders determine when an investment vehicle gets to a condition of being overbought or oversold.This information makes it possible for traders to know if they want to enter or leave a trade. The...

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Relative Vigor Index: The Full Indicator Guide

Relative Vigor Index: The Full Indicator Guide

The Relative Vigor Index indicator is an oscillator.It measures the strength behind a price move.It compares the end price range and offers a reading of the strength of price movement up or down. The Relative Vigor Index compares the end price range and offers a...

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Ultimate Oscillator: How to trade it?

Ultimate Oscillator: How to trade it?

The Ultimate Oscillator is a momentum indicator.It integrates three various times within one value.It directs traders on how to better time their entry and exits in the market.  The ultimate oscillator is a momentum indicator. It grabs momentum across three...

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Volume Oscillator: The professional guide!

Volume Oscillator: The professional guide!

The Volume Oscillator identifies the trend in volumes with a system of two Exponential Moving Averages..The Volume Oscillator is made up of two moving averages of volume, one fast and the other slow.The moving average of the fast volume is subtracted from the moving...

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Mass Index Indicator: What is it? How to trade?

Mass Index Indicator: What is it? How to trade?

The Mass Index indicator helps traders determine trend reversals.It examines the difference between low and high prices in a security over a period.It calculates with the exponential moving average (EMA) of price over a nine-days period and the exponential moving...

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Pivot Point Indicator: The Complete Guide

Pivot Point Indicator: The Complete Guide

The Pivot Point indicator automatically draws potential resistance/support levels.It make use of the high, low, and close of the previous period to estimate future support/resistance levels. Pivot points are important levels chartists that traders use to detect...

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Keltner Channel Indicator: Definition & Secrets

Keltner Channel Indicator: Definition & Secrets

The Keltner Channel is a volatility based indicator.It indicates whether the market's trend is likely to continue or it may change direction.It is generally built with a 20-period EMA as the center line and two lines above at a 2 Average True Range distance. The...

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Moving Average Crossover: Strong trading signals

Moving Average Crossover: Strong trading signals

Moving Average Crossover signals a trend reversal.The most popular one is between the 50-MA & 200-MA.The bullish cross is the golden cross and the bearish cross is the death cross. What are the Moving Average Crossovers? Moving Average (MA) Crossover indicator...

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Ichimoku Cloud: The “All In One” Indicator?

Ichimoku Cloud: The “All In One” Indicator?

The Ichimoku Cloud is composed of five lines. The include a:nine-period average, 26-period average, average of those two averages, 52-period average, and a lagging closing price line.The Cloud is a key part of the indicator. When price is below the cloud the trend is...

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Fibonacci Retracement: How to trade it?

Fibonacci Retracement: How to trade it?

Fibonacci Retracement gives traders levels for the price to retrace after 23.6%, 38.2%, 50%, 61.8% and 78.6% are the most common levels. Fibonacci Retracement or Fib Retracement is a technical analysis tool that traders use to predict areas of interest on a chart. Fib...

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Fibonacci extensions: Definition & Tactics

Fibonacci extensions: Definition & Tactics

Fibonacci extensions are projections to give clues about where price could reverse in unchartered territories.123.6%, 138.2%, 150%, 161.8%, and 178.6% are the most important Fibonacci extensions levels. Fibonacci extensions, also known as Fibonacci expansions or...

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Elliott Waves Theory: The Complete Guide [2020]

Elliott Waves Theory: The Complete Guide [2020]

Elliott Waves help traders better understand where price is within bigger trend.There are two types of waves: motive and corrective.Proper Elliott Waves follow strict counts (12345 for motive waves, ABC for corrective waves). The impulsive phases establish the trend...

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Dead Cat Bounce: The Best Secrets

Dead Cat Bounce: The Best Secrets

The dead cat bounce pattern is a specific stock chart phenomenon that occurs during a long downtrend.It is a short term reversal bounce that takes place in the context of a very long downtrend.In simple words, the pattern is a correction of a long bearish trend. The...

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Coppock Curve Indicator: Trade it like a pro

Coppock Curve Indicator: Trade it like a pro

The Coppock Curve indicatoris a momentum indicator.It helps to identify long-term trading opportunities in the stock market.The Zero-Line functions as a trade-trigger. It gives the buying signal when the Coppock Curve is above zero and selling signals when the Coppock...

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Choppiness Index Indicator: How to trade it?

Choppiness Index Indicator: How to trade it?

The Choppiness Index indicator is a volatility indicator.It determines whether the market is following a trend or the market is choppy and trading sideways. The Choppiness Index indicator is a volatility indicator that determines whether the market is following a...

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Balance of Power Indicator: Complete Guide

Balance of Power Indicator: Complete Guide

The Balance of Power indicator measures the strength of buyers in the market against sellers.It does so by assessing how able each side are to drive prices to an extreme level. Balance of Power = (Close price – Open price) / (High price – Low price)The result can be...

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Average Directional Index (ADX) Indicator

Average Directional Index (ADX) Indicator

The Average Directional Index is built on top of the Directional Movement Index.When ADX > 25, the trend is considered to be strong.When ADX < 20, the trend is considered weak or trendless. What is the Average Directional Index (ADX)? Average Directional...

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Directional Movement Index (DMI) Indicator

Directional Movement Index (DMI) Indicator

The Directional Movement Index (DMI) is composed of 2+1 linesThe -DI line shows the selling pressure (-DI),The +DI line shows the buying pressure And the DX line shows the difference between the two othersWhen +DI is above -DI, it means the price is mainly having...

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Money Flow Index Indicator: Full Guide

Money Flow Index Indicator: Full Guide

The Money Flow Index (MFI) indicator is a momentum indicator.When MFI is above 80, the market is considered overbought.When MFI is below 20, the market is considered oversold.The indicator value can be used on its own, but it also can be used when it draws in...

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Volume Profile Indicator: The “Unfair” Advantage

Volume Profile Indicator: The “Unfair” Advantage

Volume Profile shows the price where the security was most traded.It takes a given range for computation (either visible or fixed).The more volume traded at a given price, the bigger the Volume Profile bar will be. What is the Volume Profile indicator? Volume Profile...

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Awesome Oscillator Indicator: Definition

Awesome Oscillator Indicator: Definition

The legendary chartist, Bill Williams created the Awesome Oscillator indicator. He showed it as the best momentum indicator that is as simple as it is elegant. Traders use it to determine the momentum of the asset at hand in the course of recent events within the...

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Parabolic SAR indicator: The ideal stop loss?

Parabolic SAR indicator: The ideal stop loss?

The Parabolic SAR indicator helps traders spot trend direction and potential reversals.It appears on charts as a series of dots/cross above (when price is going down) or below (when price is going up) security’s price.It’s mainly used as a trailing stop. What is the...

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Williams %R indicator: The Complete Guide

Williams %R indicator: The Complete Guide

The Williams %R indicator oscillates between 0 and -100.When its value is above -20, it sends an overbought signal.When its value is below -80, it sends an oversold signal.Overbought and oversold signals are clues the price is reaching extremes. What is the Williams...

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Bollinger Bands Indicator: The Complete Guide

Bollinger Bands Indicator: The Complete Guide

John Bollinger created the technique of using a moving average with two trading bands below and above it. He introduced this technique in the 1980s and he trademarked this term in 2011. Bollinger was a long-time technician of the markets. Previously, it was known as...

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Ease of Movement Indicator: Definition

Ease of Movement Indicator: Definition

Ease of movement (EMV) momentum indicator shows the link between the rate of change in the price of an asset and its volume. It is best to use it for the daily chart and longer timeframes. Just as its name implies, the bigger the magnitude of the indicator, the easier...

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Stochastic RSI indicator: Full Guide [2020]

Stochastic RSI indicator: Full Guide [2020]

The oscillator helps trader take advantage of both momentum indicators to make another indicator. The new indicator is more sensitive and synchronises well to the historical performance of a particular security. It doesn’t generalized analysis of price variation. In...

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Zig Zag: The Trend Highlighting Indicator

Zig Zag: The Trend Highlighting Indicator

The Zig Zag indicator helps traders reduce market noise. It highlights underlying trends with its higher highs or lower lows.The indicator works best in strongly trending markets. What is the Zig Zag indicator?  The Zig Zag indicator is a very well-known tool by...

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Volume-Weighted Moving Average (VWMA) Indicator

Volume-Weighted Moving Average (VWMA) Indicator

If you have an interest in financial trading, you must have knowledge of two concepts, moving averages and volume. Moving averages is one of the most common and widely used indicators in the financial trading world. Volume is also another important concept that is...

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VWAP: The Ultimate Intraday Indicator

VWAP: The Ultimate Intraday Indicator

There are various technical indicators that have made the analysis of the financial markets remarkably easy. Some of them work with the objective of finding momentum. Others aim to find potential points of interest on a chart. But what is the most important aspect of...

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Rate of Change Indicator: Complete Guide [2020]

Rate of Change Indicator: Complete Guide [2020]

The Rate of Change (RoC) indicator is an unbounded momentum oscillator.Three main states are possible:A rising RoC above zero typically confirms an uptrend A falling RoC below zero indicates a downtrendA RoC hovering near zero hints for consolidation What is the ROC...

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McGinley Dynamic Indicator: Full Guide [2020]

McGinley Dynamic Indicator: Full Guide [2020]

The Mcginley Dynamic indicator is an indicator that is based on moving average line indicator with a soothing mechanism. Its soothing mechanism is so effective that it tracks prices far better than any other indicator. There is an inherent problem in all moving...

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Know Sure Thing (KST) Indicator: Full Guide

Know Sure Thing (KST) Indicator: Full Guide

The Know Sure Thing indicator, or KST, is a momentum oscillator.It takes into account four time periods (and not a single one as other indicators).It gives traders a bullish or bearish biais. The Know Sure Thing (KST) indicator that gives bullish and bearish...

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Island Reversal Candlestick Pattern: Full Guide

Island Reversal Candlestick Pattern: Full Guide

An Island Reversal Pattern appears when two different gaps create an isolated cluster of price.It usually gives traders a reversal biais. What is the Island Reversal candlestick pattern? The Island Reversal candlestick pattern is a fantastic candlestick pattern that...

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Fisher Transform Indicator

Fisher Transform Indicator

The Fisher Transform indicator is an oscillator that helps traders to satisfactorily identify significant trend reversal. It identifies trend reversals through normalization of prices over a predefined number of periods by the users. It also helps to visualize the...

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Donchian Channel: Definition & Secrets

Donchian Channel: Definition & Secrets

The Donchian Channel indicator is an intraday trend following indicator that allows you to identify trends. As we all know that trade breakouts is a popular trend following strategy. Breakouts can be conveniently measured through the lowest low and highest high. It...

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Average True Range (ATR) Indicator

Average True Range (ATR) Indicator

Average True Range (ATR) indicator is one of the most influential technical analysis tools that track volatility in a predefined period of time. Unlike most of the indicators, ATR does not identify trends and only focuses on measuring volatility in a particular...

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Takuri Candlestick Pattern: Definition & Tactics

Takuri Candlestick Pattern: Definition & Tactics

The Takuri candlestick pattern is a single candle bullish reversal pattern. It has a very small body with a much longer lower wick and without an upper wick. This pattern illustrates how a downtrend is opposed by the bulls and the candle eventually closes near its...

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Spinning Top Candlestick Pattern: What is it?

Spinning Top Candlestick Pattern: What is it?

The Spinning Top candlestick pattern is a versatile single candle pattern. It is versatile and mysterious because of its formation that can occur at the peak of an uptrend, in the very middle of a trend, or at the bottom of a downtrend. It is a small candlestick...

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Rickshaw Man Candlestick Pattern: Definition

Rickshaw Man Candlestick Pattern: Definition

The Rickshaw Man candlestick pattern is very similar to the Long-Legged Doji pattern. A Long-Legged Doji pattern is the one that has a closing and opening price happening at or in the middle of the shadows. The high and low prices are far apart and make very long...

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Piercing Line Candlestick Pattern: Full Guide

Piercing Line Candlestick Pattern: Full Guide

A Piercing line candlestick pattern is a two-day bullish candlestick reversal pattern that appears in a downtrend. It signals a potential short term reversal from downwards to upwards. It consists of two major components, a bullish candle of day 2 and a bearish candle...

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Long-Legged Doji Candlestick Pattern: Full Guide

Long-Legged Doji Candlestick Pattern: Full Guide

Candlestick patterns are becoming more and more popular these days for charting prices. They are easy to detect with their colorful bodies and black wicks and easy to observe the ways and the behavior of the market. One such popular candlestick pattern is the...

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Homing Pigeon Candlestick Pattern Definition

Homing Pigeon Candlestick Pattern Definition

The Homing Pigeon candlestick pattern is a two-line candlestick pattern. Traditionally, traders consider it a bullish reversal candlestick pattern. However, testing has proved that it may also act as a bearish continuation pattern. This new development proves it to be...

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Hanging Man Candlestick Pattern: Trading Guide

Hanging Man Candlestick Pattern: Trading Guide

As the name suggests, the Hanging Man candlestick pattern is a bearish sign that appears in uptrends. On occasions, it also tells traders about the upcoming price reversal. The experts of the domain suggest that the Hanging Man pattern must be taken as a warning, not...

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Hammer Candlestick Pattern: Complete Guide

Hammer Candlestick Pattern: Complete Guide

The Hammer candlestick pattern is a bullish reversal pattern that indicates a potential price reversal to the upside. It appears during the downtrend and signals that the bottom is near. After the appearance of the hammer, the prices start moving up.  Hammer...

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Doji Candlestick : The indecision pattern

Doji Candlestick : The indecision pattern

Candlestick patterns that have the same opening and closing price are known as "Doji candlestick pattern". There are four basic types of Doji candles: Four-Price DojiLong-legged DojiDragonfly Doji Gravestone Doji The Doji Candlestick is a 1-bar neutral...

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Doji Star Candlestick Pattern: Complete Guide

Doji Star Candlestick Pattern: Complete Guide

A Doji Star candlestick pattern is a three-bar pattern. It is considered as a signal of a potential upcoming reversal of the current trend of the market. It is a versatile candlestick pattern that is found in two variants, bullish and bearish. Its variants depend on...

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On Balance Volume Indicator (OBV)

On Balance Volume Indicator (OBV)

The OBV (On Balance Volume) technical indicator uses volume to indicate momentum.The OBV indicator shows crowd sentiment and help traders predict a bullish or bearish outcome.It's mainly useful when in divergence with price as it shows unexpected strength or...

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Chaikin Money Flow Indicator (CMF)

Chaikin Money Flow Indicator (CMF)

Created by Marc Chaikin, this Chaikin Money Flow indicator measures the amount of money flow volume over a particular time. Money flow volume is the basis for the accumulation/distribution Line. Rather than having a cumulative total, Chaikin money flow combines money...

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XABCD Harmonic Pattern: Full Guide

XABCD Harmonic Pattern: Full Guide

Chart patterns provide so many smart ways of applying harmonic patterns in your chart. Some of them are fully automated approaches and some of them are semi-automated approaches. One of them is using the XABCD harmonic chart pattern. The XABCD harmonic is a group of...

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Aroon Indicator: Full Trading Guide

Aroon Indicator: Full Trading Guide

The Aroon indicator is composed of two line:An up line which measures how far is the previous highA down line wich measures how far is the previous lowWhen AroonUp is above AroonDown, it gives a bullish biais.When AroonUp is below AroonDown, it gives a bearish biais....

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Moving Average Indicator: Traders best friend

Moving Average Indicator: Traders best friend

A SMA (Simple Moving Average) indicator calculates the average of prices for a given number of periods.The SMA is used alone (for its slope) or with others MAs (for the crossing). What is the Moving Average indicator? In technical analysis, the moving average is an...

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Accumulation / Distribution: The Complete Guide

Accumulation / Distribution: The Complete Guide

The accumulation distribution indicator (ADL) is a volume-measurement kind of indicator. It was created by a well-known trader and analyst, Marc Chaikin, as a stock selection tool. He has subsequently found broader application as a leading indicator for other markets,...

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Momentum Indicator (MOM): Full Guide

Momentum Indicator (MOM): Full Guide

Traders use momentum indicators to have a better understanding of the speed or rate at which the price of a security changes. Momentum indicators are best used with other indicators and tools because they don’t work to detect the direction of movement, only the...

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MACD Indicator: The Ultimate Guide [2020]

MACD Indicator: The Ultimate Guide [2020]

The Moving Average Convergence Divergence (MACD) is both a momentum and trend following indicator.It is calculated by subtracting the 26-period EMA (Exponential Moving Average) from the 12-period EMA.There are several ways to read it:When the lines crossWhen the...

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Stochastic Oscillator: Full Trading Guide [2020]

Stochastic Oscillator: Full Trading Guide [2020]

The stochastic oscillator is a popular momentum technical indicator.It gives traders overbought and oversold signals. What is the Stochastic indicator? The Stochastic Oscillator is a momentum indicator A stochastic oscillator is a momentum indicator that compares a...

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Relative Strength Index (RSI): Complete Guide

Relative Strength Index (RSI): Complete Guide

The RSI (Relative Strength Index) indicator is a popular momentum oscillator.It provides traders with bullish and bearish price momentum signal.When the RSI is above 70%, it's considered overbought; when it's below 30%, it's considered oversold. What is the Relative...

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Triple Top Pattern: What is it? How to trade it?

Triple Top Pattern: What is it? How to trade it?

The triple top pattern is a bearish reversal pattern.It's created when price bounces off resistance 3 time at similar levels.It's a sign the sellers are coming in the market to avoid the security price to shoot higher. What is a Triple Top pattern? Triple top is a...

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Three Stars in the South Candlestick Pattern

Three Stars in the South Candlestick Pattern

The Three Stars in the South candlestick pattern is a very rare pattern that doesn't typically precede large price moves.The bullish pattern forms with three black or red (down) candles of decreasing size. It usually follows a price decline.The bearish pattern forms...

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Belt Hold Candlestick Pattern: Trading Guide

Belt Hold Candlestick Pattern: Trading Guide

All patterns have a unique tale to tell about market forces that lead to its formation. And traders might benefit by trying to identify what drove the market to where it is now. Knowing exactly why a market carried out a particular move is almost impossible. Having...

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5-0 Harmonic Pattern: Complete guide [2020]

5-0 Harmonic Pattern: Complete guide [2020]

The 5-0 pattern is a reversal harmonic pattern.It follows specific fibonacci ratios (which you can read more below) What is the 5-0 harmonic pattern? Just as it is with the shark pattern, the 5-0 harmonic pattern is a relatively new pattern discovered by Scott Carney....

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Key Reversal Bar Pattern: Complete guide [2020]

Key Reversal Bar Pattern: Complete guide [2020]

Most times, traders take a 'ready, fire, aim' process to trade which is a backward way of trading. Trade is different from a trade trigger. A trade setup that most traders are always on the lookout for is a key reversal bar pattern combination. It forms when prices...

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Three Drives Harmonic Pattern Explained

Three Drives Harmonic Pattern Explained

Trading with technical analysis demands traders to depend mostly on a mixture of technical indicators and trade based on the signals from this approach. Apart from using technical indicators, traders also utilize chart patterns to base their trading decisions, whether...

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Alternate Bat harmonic pattern: Definition

Bat Harmonic Pattern: How to trade it?

The Bat harmonic pattern is close to the Gartley pattern. It is a retracement and continuation pattern that comes up when a trend temporarily changes its direction but then continues on its original course. The Bat harmonic pattern is a reversal pattern.It follows...

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Shark Harmonic Pattern: Full Guide [2020]

Shark Harmonic Pattern: Full Guide [2020]

When it comes to harmonics, trading forex is very similar to the animal world. After crabs and butterflies, sharks have come to share their name with popular five-point patterns used in trading. A very new pattern, the shark harmonic pattern, was discovered by Scott...

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Rectangle Pattern: What is it? How to trade it?

Rectangle Pattern: What is it? How to trade it?

The Rectangle pattern is bullish or bearish depending on the direction of the breakoutIt forms when price oscillates between a horizontal support and resistance. What is the Rectangle pattern? The rectangle formation is a classical technical analysis pattern shown by...

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Butterfly Harmonic Pattern: Trading Secrets

Butterfly Harmonic Pattern: Trading Secrets

When you decide to trade, the secret to becoming successful is in reading patterns. Harmonic price patterns take geometric price patterns to the next level by applying Fibonacci numbers to define specific turning points. Unlike other more trading processes, this...

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Dragonfly Doji Candlestick Pattern: Full Guide

Dragonfly Doji Candlestick Pattern: Full Guide

The dragonfly doji candlestick pattern is a 1-candle bullish pattern.It looks like the letter "T".It prints when the candle as a long bottom shadow but (almost) no upper shadow and open and close are almost the same. Statistics to prove if the Dragonfly Doji pattern...

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Triple Bottom Pattern: Definition & Strategy

Triple Bottom Pattern: Definition & Strategy

The triple bottom pattern is a bullish reversal pattern. It's created when price bounces off support 3 time at similar levels.It's a sign the buyers are coming in the market to avoid the security price to drop lower. What is the Triple Bottom pattern? The Triple...

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Three Outside Up & Down Candlestick Pattern

Three Outside Up & Down Candlestick Pattern

The Three Outside Up & Down candlestick patterns are 3-bar opposite reversal patterns.They are made of one up or down candle and then 2 candles of the opposite color.The second candle contains the first one.The third candle closes over (for the bullish formation)...

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Three-Line Strike Pattern: Complete Guide [2020]

Three-Line Strike Pattern: Complete Guide [2020]

Recognizing patterns is a necessary aspect of technical analysis. Traders should make sure that if they have a moment of doubt, they can act on a situation if they have seen it before. In this article, we will cover in-depth the Three Line Strike candlestick pattern....

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Three Inside Up & Down Pattern: Complete Guide

Three Inside Up & Down Pattern: Complete Guide

To interpret candlestick patterns, you need to look for particular formations. These candlestick formations assist traders know how the price is likely to behave next. In this article, we will go in-depth into the Three Inside Up / Down candlestick pattern. Some...

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Separating Lines Candlestick Pattern: Definition

Separating Lines Candlestick Pattern: Definition

Traders have applied candlestick patterns in analyzing the movement of a market. One of such patterns is the separating lines candlestick pattern. The pattern comes up when there's an uptrend in the market and when there's also a pullback.  The separating lines...

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Hikkake Candlestick Pattern: Full Guide

Hikkake Candlestick Pattern: Full Guide

Trading price action usually brings about surprise and excitement at the same time. Price is commonly used as a base for any technical analysis, and the hikkake trading strategy takes in consideration three price action bars to identify the pattern. The pattern looks...

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Falling & Rising Three Methods Patterns

Falling & Rising Three Methods Patterns

Candlestick patterns have become the preferred method of charting for a lot of traders. Their colorful bodies make it simple to spot market action and patterns that could hold predictive value; they also form patterns that have various meanings. One pattern is the...

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Cypher Harmonic Pattern: Definition & Strategy

Cypher Harmonic Pattern: Definition & Strategy

The cypher pattern trading strategy teaches traders how to correctly trade and draw the cypher pattern. The cypher harmonic pattern can be used on its own and provide traders a profitable forex trading strategy. It is not surprising that geometric patterns are used in...

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Mat Hold Candlestick Pattern: Complete Guide

Mat Hold Candlestick Pattern: Complete Guide

The Mat Hold candlestick pattern is a 5-candle patternIt can be bullish or bearish depending on its formationFor the bullish pattern, there is a tall green candle, 3 small red candles and the last candle is a tall green candle closing above the patternFor the bearish...

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Gravestone Doji Candlestick Pattern: Full Guide

Gravestone Doji Candlestick Pattern: Full Guide

The Gravestone Doji Candlestick Pattern is one of the fabulous and versatile patterns in trading. It an interesting bearish trend reversal candlestick pattern. Some traders, use this pattern in their daily lives to learn about the feel of the market. The article is...

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Inverted Hammer Candlestick Pattern: What is it?

Inverted Hammer Candlestick Pattern: What is it?

The inverted hammer is a 1-bar bullish candlestick pattern.It looks like a letter "T" upside-down. Statistics to prove if the Inverted Hammer pattern really works What is the Inverted Hammer candlestick pattern? As far as the...

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Head and Shoulders Pattern: Full Guide [2020]

Head and Shoulders Pattern: Full Guide [2020]

Recognizing chart patterns is one of the most reliable techniques for trading the market. There are various chart formations that traders can observe and apply to their arsenal. Today, we will go through one of the most dependable chart patterns: the head and...

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Bullish & Bearish Pennant Pattern: Definition

Bullish & Bearish Pennant Pattern: Definition

The pennant pattern is a continuation pattern.The pennant shows a time of consolidation before to (likely) continue of the same trend with a breakout.The consolidation period should have lower volume and the breakouts should occur on higher volume. What is the Pennant...

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Falling Wedge Pattern: Ultimate Guide [2020]

Falling Wedge Pattern: Ultimate Guide [2020]

Out of all the chart patterns that exist in a bullish market, the falling wedge is an important pattern for new traders. It is a very extreme bullish pattern for all instruments in any market in any trend. Depending on the educator and educational material you’ve read...

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Three Black Crows Candlestick Pattern: Definition

Three Black Crows Candlestick Pattern: Definition

The three black crows is a 3-bar bearish reversal patternThe pattern consists of 3 bearish candles opening above the previous one and closing below the midpoint of the previous candleEach candle should be relatively large to show the strong participation Statistics to...

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Inverse Head and Shoulders Pattern: Full Guide

Inverse Head and Shoulders Pattern: Full Guide

Traders apply charts when studying various patterns in market trends, including the inverse head and shoulders pattern. This pattern is characterized by three troughs (both the upward head and shoulders have peaks), with the middle trough being the deepest. An inverse...

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Cup and Handle Pattern: Definition & Strategy

Cup and Handle Pattern: Definition & Strategy

Chart patterns usually occur when the cost of an asset goes towards a direction that a common shape, like a rectangle, triangle, head and shoulders, or in this case, a cup and handle pattern. These patterns are great ways to trade visually. They offer a logical point...

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Engulfing Candlestick Pattern: Complete Guide

Engulfing Candlestick Pattern: Complete Guide

An engulfing pattern is a 2-bar reversal candlestick patternThe first candle is contained with the 2nd candleA bullish engulfing pattern has a red candle engulfed within a green candleA bearish engulfing pattern has a green candle engulfed within a red candle...

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How to trade a Rising Wedge classical pattern?

How to trade a Rising Wedge classical pattern?

A rising wedge forms when two converging upward slope trendlines encapsulate the priceIt is a bearish pattern What is a Rising Wedge? Rising wedge is a popular reversal pattern that can easily be predicted in nature. It offers clues to traders on the direction and...

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Trading the Evening Star candlestick pattern

Trading the Evening Star candlestick pattern

An evening star pattern is a bearish 3-bar reversal candlestick patternIt starts with a tall green candle, then a small candle and finishes with a tall red candleThe middle candle reports indecision in the marketThe opposite pattern is the morning star pattern...

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Ascending Triangle Pattern: Full Guide [2020]

Ascending Triangle Pattern: Full Guide [2020]

The ascending triangle pattern is a continuation pattern. Price typically breakout in the direction of the prevailing trend.It forms between a horizontal resistance and an upward slope trendlineIt helps traders frame their trade, giving an entry, stop and target What...

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How to trade a Double Top pattern?

How to trade a Double Top pattern?

The double top looks like the letter "M"Price touches twice a resistance levelThe double top pattern follows an uptrendIt signals the reversal and the beginning of a potential downtrend What is the Double Top pattern? A double top is a very bearish technical reversal...

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How to trade a Gartley harmonic pattern?

How to trade a Gartley harmonic pattern?

The Gartley pattern is a 4-legged harmonic patternIt can be bullish or bearish It follows clear fibonacci levels (see the Gartley ratios paragraph for detail) What is the Gartley pattern? The Gartley pattern is the most commonly used harmonic pattern that is based on...

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How to trade a Symmetrical Triangle pattern?

How to trade a Symmetrical Triangle pattern?

A symmetrical triangles forms when the price of a security consolidates between two trend lines with similar slopesIt can break in both directions, up or downThe symmetrical triangle helps frame your entry, stop and target What is the Symmetrical Triangle pattern?...

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How to trade the AB=CD harmonic pattern?

How to trade the AB=CD harmonic pattern?

The AB=CD harmonic is reversal patternDepending on the context, it can be bullish or bearishIt should follow specific fibonnaci ratios : BC is the 61.8 percent Fibonacci retracement of ABCD is the 127.2 percent Fibonacci extension of BC What is the AB=CD trading...

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How to trade the Harami candlestick pattern?

How to trade the Harami candlestick pattern?

The Harami pattern is a 2-bar reversal candlestick patternThe 2nd bar is contained within the 1st one Statistics to prove if the Harami pattern really works What is the Harami candlestick pattern? Even though the word Harami appears...

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How to trade the Double Bottom pattern?

How to trade the Double Bottom pattern?

The double bottom looks like the letter "W"Price touches twice a support levelThe double bottom pattern follows a downtrendIt signals the reversal and the beginning of a potential uptrend What is a Double Bottom classical pattern? A double bottom pattern is a classic...

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How to trade the Descending Triangle pattern?

How to trade the Descending Triangle pattern?

A descending triangle forms with an horizontal resistance and a descending trendline from the swing highsTraders can use the descending triangle pattern as a signal to enter a short position at breakdownThe opposite technical pattern is the ascending triangle What is...

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How to trade a Morning Star candlestick pattern?

How to trade a Morning Star candlestick pattern?

Key takeaways A morning star pattern is a bullish 3-bar reversal candlestick patternIt starts with a tall red candle, then a small candle and finishes with a tall green candleThe middle candle reports indecision in the marketThe opposite pattern is the evening star...

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