A trading range is the period of time between the formation of the first high and the first low in a given security. This period is used by traders to identify the upper and lower limits of prices for a given security. The length of the trading range can vary, but is typically two to … Read more
The Directional Movement Index (DMI) is a technical indicator that is used to determine the strength and direction of a market trend. The DMI is calculated using a combination of the +DMI and -DMI indicators, which measure the strength of the up-trend and down-trend, respectively. The DMI can be used to identify market reversals, confirm … Read more
The stochastic oscillator is a momentum indicator that is widely used in technical analysis. The indicator is created by taking two moving averages, one short-term and one long-term, and subtracting the longer term moving average from the shorter term moving average. This results in a line that oscillates between positive and negative values. The indicator … Read more
The Know Sure Thing (KST) is a technical indicator that was developed by Martin J. Pring in order to identify long-term trends in the stock market. The indicator is composed of four moving averages, which are used to calculate the overall trend. The moving averages are based on the closing prices of the stock, and … Read more
Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a technical analysis indicator that is used to gauge future price momentum and identify potential areas of support and resistance. The indicator is composed of five lines, which are referred to as the tenkan-sen, kijun-sen, senkou span A, senkou span B, and chikou span. The tenkan-sen … Read more
A Renko chart is a type of chart, developed by the Japanese, that is built using price movement rather than both price and time as traditional candlestick and bar charts are. A Renko chart is thought to be named for the Japanese word for bricks, “renga”. Each brick on a Renko chart represents price movement … Read more
A “Dead Cat Bounce” is a term used in the stock market to describe a situation where a stock or index experiences a short-term rebound after a period of decline. This rebound is typically small and short-lived, and is often followed by another decline. The term “Dead Cat Bounce” is believed to have originated in … Read more
A pivot is a technical analysis indicator used to determine the overall trend of the market over different time frames. Pivots are also used to identify potential support and resistance levels. Pivots use a wide range of data, including price, volume, and open interest, to calculate their values. Pivots can be used on any time … Read more
“Buoyant” is a technical analysis term used to describe when a security is trading above its moving average. A security is considered to be buoyant when it is trading above its moving average and is supported by higher than average volume. Can foxes meow? No, foxes cannot meow. Felines, such as domestic cats, have a … Read more
The Tenkan-Sen is a technical indicator that is used to identify the direction of a market trend. It is also used to generate buy and sell signals. The Tenkan-Sen is calculated by taking the average of the highest high and the lowest low over the past 9 period. The Tenkan-Sen is a powerful tool that … Read more
