What Is Range-Bound Trading?

Range-bound trading is a trading strategy that seeks to identify and take advantage of price patterns within a defined range. The range can be defined by support and resistance levels, or by using a technical indicator like the Bollinger Bands. The strategy involves looking for price patterns that form within the defined range and then … Read more

Symmetrical Triangle Definition.

A symmetrical triangle is a chart pattern characterized by two converging trendlines that form a triangle. The triangle is created when the price action of an asset creates lower highs and higher lows. The upper trendline is created by connecting the highs, while the lower trendline is created by connecting the lows. The symmetrical triangle … Read more

Relative Vigor Index (RVI) Definition.

The Relative Vigor Index (RVI) is a momentum oscillator that measures the conviction of price movements. The index fluctuates between 0 and 100, with readings above 50 indicating bullish momentum and readings below 50 indicating bearish momentum. The RVI is calculated using the following formula: RVI = 100 * ( ( Close – Open ) … Read more

Ichimoku Kinko Hyo.

Ichimoku Kinko Hyo is a technical analysis system that was developed in Japan in the late 1930s. The system is designed to help traders identify potential trading opportunities by using a combination of moving averages and support and resistance levels. The Ichimoku Kinko Hyo system consists of five different indicators: 1. The Tenkan-Sen: This is … Read more

Triple Exponential Average (TRIX).

TRIX is an indicator that measures the rate of change of a triple exponential moving average (TEMA). The triple exponential moving average is a technical indicator that is used to smooth price data and to identify trends. The TEMA was developed by Jack Hutson in the early 1980s and is similar to other moving averages, … Read more

Vortex Indicator (VI).

A vortex indicator is a technical indicator that is used to identify whether a market is in a bullish or bearish trend. The indicator is based on the premise that the market is like a vortex, with the bulls pushing the prices up and the bears pushing the prices down. The indicator consists of two … Read more

Breakaway Gap Definition.

A breakaway gap is a type of price gap that occurs during an uptrend, when the price of an asset suddenly jumps higher or lower than the previous day’s trading range. This type of gap signals a potential change in the asset’s trend and is often followed by increased levels of trading activity. What are … Read more

What Is a Daily Chart?

A daily chart is a graphical representation of price movements over a period of one day. It is one of the most commonly used chart types in technical analysis. The x-axis of a daily chart typically represents time, with each successive day represented by a new data point. The y-axis represents price. Daily charts are … Read more

Upside/Downside Ratio.

The upside/downside ratio is a technical analysis indicator that measures the proportion of stocks in an index or market that are trading above their previous day’s close relative to the number of stocks that are trading below their previous day’s close. The indicator is calculated by taking the number of stocks in an index or … Read more