Footprint charts are a type of chart that shows the price action of a security or asset, along with the volume traded at each price level. This provides a more detailed view of price action than a traditional candlestick or bar chart, and can be useful for identifying buying and selling pressure, as well as … Read more
The Box-Jenkins model definition is a statistical approach to time series forecasting that is used to identify and model the underlying patterns in data. This approach was developed in the 1970s by George Box and Gwilym Jenkins. The Box-Jenkins model definition involves three steps: 1. Identify the type of time series data that is being … Read more
The three outside up/down pattern is a bullish/bearish reversal pattern that can occur at the end of a downtrend or an uptrend. The pattern consists of three candles, with the first candle being a bearish candle, the second candle being a bullish candle, and the third candle being a bullish/bearish candle that closes above/below the … Read more
What is mean reversion and how can investors use it? Which moving average is best for mean reversion? There is no one “best” moving average for mean reversion trading; rather, the best moving average will depend on the specific characteristics of the security being traded, the time frame of the trade, and the trader’s personal … Read more
Bell Curve Definition: Normal Distribution. Who discovered normal distribution? The normal distribution was first discovered by De Moivre in 1733. He was able to show that the distribution of the sum of a large number of random variables is approximately normal. The distribution was later refined by Laplace in 1812. What is the slope of … Read more
An autoregressive (AR) model is a statistical model that uses past values of a variable in order to predict future values of that same variable. The term “autoregressive” comes from the fact that the model is a regression model in which the dependent variable is a function of its own past values. The order of … Read more
In statistics, symmetrical distribution is a type of distribution where the data is evenly distributed around the center point. This means that if you were to plot the data on a graph, it would look like a bell curve. Symmetrical distribution is also sometimes called normal distribution. How many shapes of distribution are there? There … Read more
Gartley patterns are a type of harmonic pattern, which is a specific price structure that is identified using Fibonacci numbers. The Gartley pattern is one of the most commonly used harmonic patterns, and it is used to predict potential reversals in the market. The Gartley pattern is created by drawing two trend lines that connect … Read more
A dragonfly doji is a type of candlestick pattern that indicates that the market is bullish. It is so named because the candlestick looks like a dragonfly. The dragonfly doji is created when the open, high and close are all equal or very close to each other. This indicates that there is little or no … Read more
The Dow theory is a market analysis technique that is used to help predict future market movements. The theory is based on the belief that the market is made up of three basic types of market movements: primary, secondary, and tertiary. Primary market movements are the long-term trends that last for months or years. These … Read more
