. Hammer Candlestick: Definition and Use. What is a candlestick in investing? Candlesticks are a type of chart used to visualize price data for a security. Each candlestick represents the price data for a specific time period, and can provide insight into the price action for that period. Candlesticks are often used in conjunction with … Read more
The bullish homing pigeon is a candlestick pattern that is used in technical analysis to signal a potential reversal in the current downtrend. The pattern is formed by two candlesticks, with the first being a long black candlestick followed by a small white candlestick that gaps down from the black candlestick. The white candlestick should … Read more
A line chart is a graphical representation of data that uses lines to connect data points. Line charts are typically used to visualize data that changes over time, such as stock prices or economic data. Line charts can also be used to visualize data that is categorical, such as data from a survey. Why charts … Read more
Basing definition: a market bottom characterized by a period of consolidation and accumulation. The market bottom is typically marked by a period of consolidation, during which the market trades within a relatively tight range. This is followed by a period of accumulation, during which buying interest begins to increase and prices start to move higher. … Read more
Backtesting is the process of testing a trading strategy on historical data to ensure its viability. By doing so, traders can gauge whether a strategy is likely to be successful in the future. Backtesting can be used on any time frame, from intraday to monthly charts. There are a number of different ways to backtest … Read more
Spike Definition A spike is a sharp, sudden price move in any market. A spike can be caused by a number of factors, including news announcements, rumors, and large trades. A spike is usually considered to be a move of at least 5% in a single day, although this definition can vary depending on the … Read more
Buck the trend definition: A trade that goes against the current trend. The definition of “buck the trend” is a trade that goes against the current trend. This type of trade is usually considered to be more risky, as it goes against the overall market trend. However, if the trade is successful, it can lead … Read more
The arithmetic mean is the simplest and most commonly used type of average. To calculate the arithmetic mean, simply add up all of the values you wish to include in the average and then divide by the number of values. For example, let’s say you wanted to find the arithmetic mean of the following set … Read more
A linear price scale is a type of scale used to measure price movements. It is also known as an arithmetic scale. This scale uses a linear relationship between price and distance, meaning that each unit on the scale represents an equal increase or decrease in price. For example, if the price of a stock … Read more
A downtrend is defined as a series of lower lows and lower highs. In other words, each successive low is lower than the previous low, and each successive high is lower than the previous high. A downtrend may be caused by various factors, such as a change in investor sentiment or a change in the … Read more
