What Is a Bearish Abandoned Baby?

A bearish abandoned baby is a candlestick pattern that is used to signal a potential reversal in a downtrend. It is composed of three candlesticks, with the first being a long bearish candle, followed by a doji (or small candlestick with little or no real body), and then finally a long bullish candle. The key … Read more

Bullish Harami Definition.

A bullish harami pattern is a candlestick chart pattern that signals a potential reversal from a downtrend to an uptrend. The pattern is formed by two candles, with the first candle being a long bearish candle followed by a short bullish candle. The bullish candle is considered a “harami” because it is “inside” the previous … Read more

Climax Definition.

A climax is a point in time at which the price of a security reaches its highest level in a given trading period. A bullish climax is typically marked by a sharp increase in price followed by a rapid decline, while a bearish climax is typically marked by a sharp decline in price followed by … Read more

Market Indicators Definition.

A market indicator is a statistical measure of past market activity that is used to predict future market behavior. Market indicators can be used to identify trends, momentum, and support and resistance levels. There are many different types of market indicators, each of which measures a different aspect of market activity. Some of the most … Read more

Dark Cloud Cover Definition and Example.

A dark cloud cover is a bearish reversal pattern that forms after an uptrend. It is created when a black candlestick opens below the close of the previous white candlestick and then closes below the midpoint of the previous candlestick’s real body. The pattern gets its name from the black candlestick that appears to be … Read more

Gann Fans Definition and Uses.

Gann Fans are a technical analysis tool used to identify key support and resistance levels based on past price action. They are created by drawing a trendline from a significant high or low point and then drawing horizontal lines at evenly spaced intervals (usually 1/8, 1/4, 1/2, 1, 2, 4, 8, or 16) from that … Read more

Negative Volume Index (NVI).

Negative volume index (NVI) is a momentum indicator that uses volume changes to predict price changes. It is based on the assumption that price changes tend to follow volume changes. The NVI is calculated by subtracting the volume of a day from the volume of the previous day, and adding the resulting difference to a … Read more