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Technical Analysis

Technical Analysis

The Inside Bar Trading Strategy – Market Consolidation Periods

The Inside Bar Trading Strategy – Market Consolidation Periods The inside bar opens up a whole new aspect to traders within the stock market. The inside bar pattern is a two-candle formation. Inside bars smaller in size and trades within the prior bar’s high-low range. You may see traders mention “inside day” or “inside week.” The inside bar pattern is what these traders are referring to. This means an inside bar is printed on the… Read More »The Inside Bar Trading Strategy – Market Consolidation Periods

Stock Consolidation – Understanding Points of Market Equilibrium

Stock Consolidation Stock consolidation patterns can result in some strong breakouts. If traded correctly, they can result in some stellar profits when trading stocks and options. When the market comes to an indecision regarding the value of a specific stock or financial instrument, price action often rotates above and below an “average price.” This given price (or “point of control” when referring to volume profile) might be reasonably stable or could be trending upward or… Read More »Stock Consolidation – Understanding Points of Market Equilibrium

Best Charting Platform Review – TradingView

TradingView Review Tradingview Review (7/8/2018) – The quest for the best stock charting software can be a lengthy one, as so many options are available to traders today. This article is to aid in shortening your search, and to discuss and complete a TradingView review, which in my opinion, is by far the best stock charting software available today. Its fast, reliable, versatile, and highly customizable. This Tradingview review will highlight numerous areas that you may not… Read More »Best Charting Platform Review – TradingView

Charts Precede the News

Stock Charts Precede the News, Not the Other Way Around “Stock charts precede the news,” say many who trade on a regular basis. Most technical analysts will tell you that charts are “the light” when it comes to trading, and that you’re likely “stuck in the dark” without them. The chart is your map. Without it, you’re trading blindly and essentially (in my opinion), gambling with your money. A lot of traders believe that news makes or creates… Read More »Charts Precede the News

Aroon Indicator

The Aroon Indicator: Up? Down? Or Sideways? The Aroon Indicator, also referred to as “Aroon Up/Down,” is a range-bound technical indicator developed by technical analyst and author Tushar Chande. “Aroon,” which is Sanskrit for “Dawn’s Early Light,” demonstrates Chande’s belief further in its ability to both determine and confirm trends. The Aroon Indicator has two lines, each with different measurements. These lines are referred to as “Aroon-Up” and “Aroon-Down.” Aroon-Up displays how long it has been… Read More »Aroon Indicator

On Balance Volume (OBV)

On Balance Volume: Understanding the Indicator On Balance Volume (OBV) is a technical indicator developed by Joe Granville in the 60s and was designed to display the flow of volume in and out of a stock or index. Simply put, the OBV is a running tally of volume. The OBV can trend up (bullish), down (bearish), or sideways (neutral). An example with annotations is shown below on $AAPL: How On Balance Volume Works A random… Read More »On Balance Volume (OBV)

Key Intraday Reversal Times

Intraday Reversal Times Intraday reversal times occur at specific times of the day, each day, nearly every day. There are numerous aspects that make up the well-oiled machine that is the stock market. However, these aspects are formed by combinations of consistent and repeating patterns. One of these patterns is time. Though time can be used in a number of ways to gauge performance, this article is specific to pinpointed intraday reversal times. The average trader… Read More »Key Intraday Reversal Times

Gann Fan

The Gann Fan: Understanding the Magic Behind the Tool Are you a fan of the Gann? “People are afraid of what they don’t understand.” Some see a chart with a lot of lines on it and freak out. Others panic, simply b/c it’s too much to look at or understand. Don’t. Once you understand how to use tools like the Gann fan, and understand what you are looking at, it becomes easy to apply them… Read More »Gann Fan

Descending Broadening Wedge

Descending Broadening Wedge The Descending Broadening Wedge is essentially the opposite of the Ascending Broadening Wedge. The same pattern, but flipped or mirrored. Contrary to the Falling Wedge, where the price action contracts as the pattern matures, the Descending Broadening Wedge widens as the two trend lines that have formed diverge from one another. The descending broadening wedge is a reversal pattern and is bullish in nature. Though the pattern is typically a reversal signal, continuation of the… Read More »Descending Broadening Wedge

Volume Weighted Average Price (VWAP)

Volume Weighted Moving Average (VWAP) Volume Weighted Average Price (VWAP) is an intraday indicator that you can use to determine where a stock is trading relative to it’s volume-weighted average for the market day. For the matheletes out there, the equation is below. It also helps determine market direction and confirm trade signals on an individual stock. Before you apply the indicator to your charts, understand how it works, the drawbacks of the indicator, and… Read More »Volume Weighted Average Price (VWAP)

Bump and Run Reversal (BARR)

Bump and Run Reversal The bump and run reversal is both simple and effective. The bump and run reversal (or BARR) pattern indicates an existing trend’s reversal. This can occur on both short or long-term time frames. A BARR pattern forms by drawing a single trend line that touches the lows, while an inverted BARR pattern would touch the highs. It is crucial to draw trend lines to the candle wicks’ tips, should any be… Read More »Bump and Run Reversal (BARR)

Ascending Broadening Wedge

Ascending Broadening Wedge The Ascending Broadening Wedge is a reasonably common chart pattern that many traders enjoy trading. Contrary to the Rising Wedge, in which price action contracts as the pattern matures, the Ascending Broadening Wedge widens as the two trend lines that have formed diverge from one another. The ascending broadening wedge is a reversal pattern and is bearish in nature. Often a “peaking” move accompanied by bearish divergences in indicators like RSI and MACD.… Read More »Ascending Broadening Wedge

Parabolic SAR Indicator

Parabolic SAR Indicator: Understand and Apply In trading, profits or losses are defined by a trader’s ability to anticipate price action. Several indicators can assist in predicting future price action, but few are as easy to interpret as the parabolic SAR indicator. The parabolic SAR (Stop And Reverse) is an indicator traders use to determine the short-term directional change and the point on the chart when this momentum shift has a higher-than-average probability of taking… Read More »Parabolic SAR Indicator

Falling Wedge

The Falling Wedge Pattern The Falling Wedge pattern is a bullish chart pattern that forms with a wide formation at the top and contracts as the pattern matures. The overall price action forms a down-sloping wedge as the support and resistance trend lines converge.   Contrary to the symmetrical triangle, which shows no obvious slope (bullish/bearish bias), the falling wedge shows an obvious slope to the downside and hold a bullish bias. Though the pattern… Read More »Falling Wedge

Fibonacci Retracements

Fibonacci Retracements: Understand and Apply Here we go… absorb this like a sponge. If you are not familiar with Fibonacci retracements, this could quite honestly change the way you look at charts forever. There are numerous tools to plot Fibonacci retracements available to traders. I’ve experimented with arcs, fans, spirals, and several others. My personal opinion is that one is all you need. I consider it a big part of my strategy when trading. This… Read More »Fibonacci Retracements

Rising Wedge Pattern

The Rising Wedge Pattern The Rising Wedge pattern is a reversal pattern that occurs on the highs. While bearish in nature, it forms with wide price action at the base and then contracts as price action moves higher and the range of trading narrows. A bearish divergence in momentum accompanies the formation. Contrary to the symmetrical triangle, which shows no obvious slope and therefore no bullish/bearish bias, the rising wedge pattern shows an obvious slope to… Read More »Rising Wedge Pattern

Ascending Triangle

The Ascending Triangle The Ascending Triangle is a technical analysis chart continuation pattern that consists of 2 trend lines. One being a horizontal trend line at a level of resistance, which is classified as no fewer than two highs, and with the second being a trend line to the upside on the lower side of the pattern, which connects a series of higher lows. Formation: The ascending triangle begins to form when the price action… Read More »Ascending Triangle

Moving Average Convergence Divergence (MACD)

The MACD Indicator: Understand and Apply The MACD Indicator is a momentum indicator that can play a part in determining whether a trend has completed or is just beginning. Depending on the time frame, the MACD can help you to find entry and exit points within the positive and negative turns of momentum. MACD Indicator – A Duel Threat  The Moving Average Convergence Divergence (MACD) indicator displays two primary indications. It displays momentum and trend-tracing… Read More »Moving Average Convergence Divergence (MACD)

Relative Strength Index (RSI)

Getting the Most From Relative Strength Index (RSI) The Relative Strength Index (or RSI) is an oscillator tool that is well known and widely respected. The term “Relative Strength Index” is somewhat misleading. It doesn’t actually compare the relative strength of the stock to an index as you might think it would. Instead, it measures the internal strength of just one you’re viewing. They should have just named it the “Internal Strength Index.” The Relative… Read More »Relative Strength Index (RSI)

Moving Averages

Moving Averages Explained Moving averages (or MAs) can be one of the easiest technical analysis indicators to understand and utilize. MAs get a lot of media exposure, yet many investors and traders are generally unaware of their full range of use. MAs can be beneficial to both long and short-term traders, as they can provide warnings, in addition to entry and exit indications, which in turn simplifies market data for you. While moving averages and… Read More »Moving Averages

The Symmetrical Triangle

The Symmetrical Triangle The symmetrical triangle (or coil) pattern normally occurs during a trend as a continuation pattern. It is essentially a coin flip as to which direction price will exit if it is truly a Symmetrical Triangle. The triangle includes at least two higher lows and two lower highs. Essentially, the trading range becomes smaller and smaller within the triangle. Although it is possible for symmetrical triangles to signal important reversals, they are more… Read More »The Symmetrical Triangle