Coiled Market Definition.

The coiled market definition is a technical analysis term that refers to a market that is consolidating within a tight range. This type of market is typically seen as a precursor to a breakout move, where prices will move sharply in one direction or the other. The coiled market definition can be applied to any … Read more

What Does Evening Star Mean?

The evening star is a three-candlestick pattern that signals the reversal of a bullish trend. The pattern is composed of a large bearish candlestick, followed by a small bullish candlestick, and then another large bearish candlestick. How do you trade morning star? The morning star is a candlestick pattern that consists of three candles. It … Read more

Keltner Channel Definition.

A Keltner channel is a technical analysis indicator used to help identify market trends and potential reversals. market trends. The indicator is a set of three bands that are plotted based on the average true range of price movement. The centerline of the channel is typically set at the 20-period moving average of the true … Read more

How a Relief Rally Works.

A relief rally is a sharp, short-term increase in stock prices that occurs after a period of decline. Relief rallies are often seen as a sign that the underlying trend is still intact, and that the recent decline was simply a corrective move. However, relief rallies can also be false signals, and it is important … Read more

Net Volume.

Net volume is the difference between the total volume of shares traded on the up ticks and the total volume of shares traded on the down ticks. Net volume is used as a technical indicator to gauge the strength of a stock’s price movement. If net volume is positive, it means that more shares were … Read more

Island Reversal Definition.

An island reversal is a candlestick chart pattern in which a stock price gaps up or down, forms an island of trading activity, and then gaps back in the opposite direction. The island reversal pattern is considered to be a very powerful signal, as it indicates a sudden change in investor sentiment. The island reversal … Read more

Stochastic RSI – StochRSI Definition.

The Stochastic RSI is a momentum oscillator that measures the level of the RSI relative to its range over a given period of time. The Stochastic RSI is calculated using the following formula: StochRSI = (RSI – RSImin) / (RSImax – RSImin) where: RSI = the Relative Strength Index RSImin = the lowest RSI value … Read more