. Bollinger Bands: How to Calculate and What They Indicate How do you calculate Bollinger Bands? Bollinger Bands® are a technical analysis tool comprised of a simple moving average (SMA) and two upper and lower bands. The upper and lower bands are typically 2 standard deviations (SD) above and below the SMA, respectively. Bollinger Bands … Read more
A head-fake trade is a technical analysis term used to describe a false signal that tricks traders into taking a position in the market. Head-fake trades are often the result of false breakouts, which occur when the price of an asset moves outside of a defined support or resistance level, only to quickly reverse course … Read more
The Guppy Multiple Moving Average (GMMA) is a technical indicator used to identify changing trends in the price of a security. The GMMA is composed of two sets of moving averages, one set representing short-term trends and the other set representing long-term trends. The GMMA is used by traders to identify potential turning points in … Read more
Gapping is a term used in technical analysis that refers to a situation where the price of a security (stock, commodity, currency, etc.) opens at a level that is higher or lower than the previous day’s close. This type of price action can sometimes be an indication of increased buying or selling pressure and can … Read more
In technical analysis, a neckline is the line connecting the lowest points of a price chart during a downtrend. The neckline is used to confirm a head and shoulders pattern, which is a bearish reversal pattern. A head and shoulders pattern forms when the price forms two successive highs, followed by a higher high, and … Read more
The Trade Volume Index (TVI) is a technical indicator that measures the amount of trading activity in a given security or market. The index is calculated by taking the sum of the traded volume for all periods and dividing it by the total number of periods. The resulting value is then plotted as a line … Read more
A triple bottom chart is a type of technical analysis chart that is used to identify potential reversal points in an asset’s price. The triple bottom chart is created by plotting three consecutive lows on a price chart, with the middle low being the deepest. A triple bottom chart can be used to trade a … Read more
When you’re looking at a candlestick chart, a doji occurs when the open and close prices are roughly equal. A doji candlestick pattern can occur at the bottom or top of a trend, or in the middle of a consolidation period. It’s considered a neutral pattern, but depending on the location and context, it can … Read more
A runaway gap is a type of price gap that occurs when the price of a security moves sharply higher or lower, with little or no trading in between. Runaway gaps often occur during periods of high market volatility, and can signal a change in the current trend. In a bullish runaway gap, the price … Read more
The Intraday Momentum Index (IMI) is a technical indicator that measures the amount of price change during the trading day. It is calculated by taking the difference between the high and low prices of a security and dividing it by the security’s volume. The IMI is displayed as a line chart with a range of … Read more
