The Klinger oscillator is a momentum indicator that uses price and volume to predict changes in market direction. It is named after its creator, Stephen Klinger, who described it in a 1986 article in Stocks & Commodities magazine. The Klinger oscillator is calculated using both price and volume data. The indicator oscillates around a zero … Read more
Capitulation: What It Is in Finance and Investing. Is surrender a synonym for capitulate? Surrender and capitulation are not synonyms. Capitulation is the act of giving up, while surrender is the act of yielding. Capitulation typically happens when one is defeated, while surrender can happen even when one is not defeated. What is an example … Read more
A golden cross is a bullish breakout pattern formed from a crossover of a security’s short-term moving average (such as the 20-day moving average) above its long-term moving average (such as the 50-day moving average) or vice versa. A golden cross indicates that the short-term moving average has crossed above the long-term moving average and … Read more
Range-bound trading is a trading strategy that seeks to identify and take advantage of price patterns within a defined range. The range can be defined by support and resistance levels, or by using a technical indicator like the Bollinger Bands. The strategy involves looking for price patterns that form within the defined range and then … Read more
A symmetrical triangle is a chart pattern characterized by two converging trendlines that form a triangle. The triangle is created when the price action of an asset creates lower highs and higher lows. The upper trendline is created by connecting the highs, while the lower trendline is created by connecting the lows. The symmetrical triangle … Read more
The Relative Vigor Index (RVI) is a momentum oscillator that measures the conviction of price movements. The index fluctuates between 0 and 100, with readings above 50 indicating bullish momentum and readings below 50 indicating bearish momentum. The RVI is calculated using the following formula: RVI = 100 * ( ( Close – Open ) … Read more
Ichimoku Kinko Hyo is a technical analysis system that was developed in Japan in the late 1930s. The system is designed to help traders identify potential trading opportunities by using a combination of moving averages and support and resistance levels. The Ichimoku Kinko Hyo system consists of five different indicators: 1. The Tenkan-Sen: This is … Read more
TRIX is an indicator that measures the rate of change of a triple exponential moving average (TEMA). The triple exponential moving average is a technical indicator that is used to smooth price data and to identify trends. The TEMA was developed by Jack Hutson in the early 1980s and is similar to other moving averages, … Read more
A vortex indicator is a technical indicator that is used to identify whether a market is in a bullish or bearish trend. The indicator is based on the premise that the market is like a vortex, with the bulls pushing the prices up and the bears pushing the prices down. The indicator consists of two … Read more
A breakaway gap is a type of price gap that occurs during an uptrend, when the price of an asset suddenly jumps higher or lower than the previous day’s trading range. This type of gap signals a potential change in the asset’s trend and is often followed by increased levels of trading activity. What are … Read more
