What It Signals, Target, and Example. What Are Double Bottom Patterns? Double bottom patterns are a type of technical analysis that can signal a potential reversal in a downward trend. They are created when there are two lows in price action that are roughly equal, followed by a rally. The target for a double bottom … Read more
An ARIMA model is a generalization of an autoregressive moving average (ARMA) model. An ARIMA model can be viewed as a special case of a regression model where the dependent variable is the difference between two consecutive observations. The ARIMA model is a generalization of the ARMA model which allows for the modeling of data … Read more
The Elliott Wave Theory is a form of technical analysis that is used to predict the future price movements of financial assets. The theory is based on the observation that price movements in the financial markets typically follow a repeating pattern known as the “Elliott Wave.” The Elliott Wave Theory was developed by Ralph Elliott, … Read more
A Wolfe Wave is a price pattern that is composed of five price waves, which are denoted by the letters “W,” “X,” “Y,” “Z,” and “A.” This pattern is named after Larry Wolfe, who popularized it in the book “Practical Pattern Recognition for Trend Following and Day Trading.” The Wolfe Wave pattern is typically found … Read more
Rate of change (ROC) is a technical indicator that measures the percentage change in price between two periods. The ROC calculation compares the current price with the price “n” periods ago. The resulting number is then plotted as a line on a chart, with the line starting at 100 and moving up or down based … Read more
What is the Line of Best Fit? The line of best fit is a line that is used to represent the relationship between two variables. This line is used to predict the value of one variable based on the value of the other variable. The line of best fit is also known as the regression … Read more
. Positive Skewness: When the Mean is Greater Than the Median Negative Skewness: When the Mean is Less Than the Median How do you explain a skewed distribution? A skewed distribution is a type of distribution in which the data is not symmetrical. The most common type of skew is positive skew, which occurs when … Read more
Today’s high is the highest price that a security has traded at during the current trading day. It is important to note that Today’s High is not necessarily the highest price that the security has ever traded at, but rather, the highest price that it has traded at during the current trading day. Is the … Read more
The Three Inside Up/Down pattern is a bullish/bearish reversal pattern that can be found on candlestick charts. The pattern is made up of three candlesticks, with the first being a bearish candlestick, the second being a bullish candlestick, and the third being another bullish candlestick. The pattern is considered to be a bullish reversal pattern … Read more
The on neck pattern is a bearish reversal pattern that forms after an extended uptrend. It is characterized by a long white candlestick followed by a black candlestick with a close that is below the midpoint of the white candlestick. The pattern is considered complete when a black candlestick closes below the low of the … Read more
