The Three White Soldiers Candlestick Pattern is a bullish reversal pattern that can be used to signal the end of a bearish trend and the start of a new bullish trend. The pattern is composed of three consecutive white candlesticks with each candle having a higher close than the previous candle. The pattern is considered … Read more
A wedge is a technical analysis pattern that is created when the price of an asset moves between two trendlines that are heading in opposite directions. The upper trendline is created by connecting the asset’s highs, while the lower trendline is created by connecting the asset’s lows. The pattern is considered complete when the price … Read more
The rising three methods pattern is a bullish reversal pattern that is typically found in an uptrending market. This pattern is made up of three candlesticks, with each successive candlestick opening higher than the previous one. The pattern is completed when the third candlestick closes above the midpoint of the first candlestick. The rising three … Read more
On-Balance Volume (OBV): Definition, Formula, and Uses On-Balance Volume (OBV) is a technical analysis indicator that measures the buying and selling pressure of a security. The OBV formula is simply the difference between the volume of security traded on up days versus the volume of security traded on down days. OBV can be used as … Read more
The Chikou Span is a lagging indicator used in technical analysis that is derived from the Ichimoku Kinko Hyo indicator. The Chikou Span is created by plotting the most recent closing price 26 periods behind (lagging) the current price. The Chikou Span is used to identify potential turning points and confirm trends. The Chikou Span … Read more
A bullish belt hold is a candlestick charting pattern that is used to signal the continuation of an uptrend. The pattern is comprised of a single candlestick with a long white body and small or no upper shadow. The bullish belt hold pattern is most often found at the end of a short-term correction or … Read more
A pennant chart pattern is a technical analysis tool that is used to identify potential reversals in a security’s price. The pattern is created when the security’s price action forms a symmetrical triangle, which is characterized by converging trendlines. These trendlines are created by the security’s high and low prices, and the pattern is considered … Read more
An inside day is a candlestick pattern where the candlestick’s high and low price ranges stay within the previous day’s high and low price ranges. This shows that there is indecision in the market and that neither the bulls nor the bears are able to gain control. How do you trade daily inside a bar? … Read more
A tick index is a technical indicator that measures the number of stocks that are trading on an uptick minus the number of stocks that are trading on a downtick. The tick index can be used to gauge the overall mood of the market, as an uptick in the tick index indicates that more stocks … Read more
The intraday intensity index (III) is a technical indicator that measures the amount of buying and selling pressure in the market. It is calculated by taking the difference between the number of advancing stocks and the number of declining stocks, and then dividing by the total number of stocks traded. The intraday intensity index can … Read more
