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Moving Average Convergence Divergence (MACD) The Moving Average Convergence Divergence, commonly known as MACD, is a trend-following momentum indicator that reveals the relationship between two moving averages of an asset’s price. Gerald Appel introduced it in the late 1970s, and since then, it has become one of the most widely used indicators in technical analysis. … Read more
Bollinger Bands The Bollinger Bands were developed by John Bollinger in the 1980s as a tool to help traders identify potential price volatility and relative high or low prices in relation to previous trades. These bands provide a relative definition of high and low prices and can be used to identify potential overbought or oversold … Read more
Stochastic Oscillator The Stochastic Oscillator is a momentum indicator that was developed by George C. Lane in the late 1950s. It compares a particular closing price of a security to a range of its prices over a certain period of time. The oscillator’s sensitivity to market movements can be reduced by adjusting the time period … Read more
Relative Strength Index (RSI) The RSI, or Relative Strength Index, is a momentum oscillator introduced by J. Welles Wilder in his 1978 book “New Concepts in Technical Trading Systems.” This technical indicator measures the speed and change of price movements, oscillating between zero and 100. It is commonly used to identify overbought or oversold conditions … Read more
On Balance Volume (OBV) The OBV, or On-Balance Volume, is a technical indicator used in the realm of financial trading, primarily for stocks and forex. Joe Granville introduced it in his 1963 book “New Key to Stock Market Profits.” It offers traders insights into the flow of volume in relation to price changes, aiming to … Read more
Moving Averages The moving average (MA) is one of the most popular and widely used technical indicators in the financial markets. It smoothens price data to create a single flowing line, which makes it easier for traders to identify the direction of the trend. Definition: A moving average simply averages a set of data points … Read more
Falling Window (Gap) Pattern Type: Bearish The Falling Window, also known as the “Gap Down” in Western technical analysis, is a bearish candlestick pattern signaling a potential continuation of the current downtrend. This pattern is characterized by a gap between the low of one session and the high of the following session, with no overlap … Read more
Bearish Abandoned Baby Pattern Type: Bearish The Bearish Abandoned Baby is a significant and dependable candlestick reversal pattern, signaling a potential top in the market. While it’s a rarer pattern, its appearance is a strong indicator of a changing tide in investor sentiment, shifting from bullish to bearish. This pattern can be seen as a … Read more
The Bearish Marubozu Pattern Pattern Type: Bearish The Bearish Marubozu is a pronounced bearish candlestick pattern, representing robust selling sentiment throughout a given trading session. Stemming from the Japanese term for “bald” or “shaven,” the name “Marubozu” refers to the pattern’s distinct lack of shadows, showcasing a steadfast commitment from sellers from the session’s beginning … Read more
The Dark Cloud Cover Pattern Pattern Type: Bearish The Dark Cloud Cover is a bearish reversal candlestick pattern, often appearing after an uptrend and signaling a potential shift in the prevailing bullish sentiment. The pattern encapsulates the market’s transitioning dynamics, where bullish optimism is being overshadowed by emerging bearish sentiment. What The Pattern Looks LikeThe … Read more