A long-legged doji is a type of candlestick pattern that can signal a potential reversal in the markets. It is formed when the open and close prices are roughly equal, but the candlestick has long wicks (upper and lower shadows) that extend out from the body. This indicates that there was significant price action during … Read more
A white candlestick is a type of candlestick chart used in technical analysis that shows the open, high, low, and close price of a security for a given period. The candlestick is white if the close price is higher than the open price. What is a long candle? A long candle is a candlestick with … Read more
Triple Top: What It Is and How It Works. How do you trade triple bottom patterns? The triple bottom pattern is a bullish reversal pattern that is created when prices hit a low three times in a row, with each low being marginally higher than the last. The pattern indicates that sellers are exhausted and … Read more
The Fisher Transform is a technical indicator used to identify potential reversals in the market. The indicator is based on the idea that market prices tend to move in cycles, and that by identifying these cycles, it is possible to predict when a market is due for a reversal. The Fisher Transform indicator is calculated … Read more
Speed Resistance Lines (SRL) are a technical analysis tool that are used to predict future price movements of a security. They are created by drawing a line from the highest high to the lowest low of a recent price move, and then extending that line into the future. The theory behind SRLs is that prices … Read more
The Volume Price Trend Indicator (VPT) is a technical indicator that measures the relationship between volume and price changes. The indicator consists of a simple moving average of volume and a price-based moving average. The indicator is used to identify trends and confirm price movements. The Volume Price Trend Indicator is a technical indicator that … Read more
The measuring principle definition is the basic guideline for technical analysis which states that price action reflects everything that is known about a given security. This means that all information, whether it is public or private, is already reflected in the current price. Technical analysts believe that by studying past price action, they can gain … Read more
Overbought refers to a situation where the price of an asset has risen too far and too fast and is now considered to be overvalued. This can be caused by a number of factors, such as a surge in buying demand or a lack of selling pressure. When an asset is overbought, it is usually … Read more
The Elder-Ray Index is a technical indicator that measures the difference between the highest price and the lowest price over a specified period of time. The Elder-Ray index is used to identify bullish and bearish market conditions. If the Elder-Ray index is positive, it indicates a bullish market, while a negative Elder-Ray index indicates a … Read more
A low volume pullback is a type of price movement that typically occurs after a sharp rally or decline. It is characterized by a sharp move in price followed by a period of consolidation with relatively low volume. Low volume pullbacks typically occur when investors are undecided about the direction of the market and are … Read more
