A trendline is a line that connects two or more price points on a chart. The line is used to identify the direction of the trend. A trendline can be created by connecting two or more swing highs or swing lows. In an uptrend, the trendline is created by connecting two or more swing lows. … Read more
A shadow in the stock market refers to the range between the high and low prices of a stock during a given trading period. The high price is referred to as the “upper shadow,” while the low price is referred to as the “lower shadow.” The length of the shadows can provide clues about the … Read more
An outside reversal is a candlestick chart pattern that occurs when the market reverses direction after a period of consolidation. It is marked by a candlestick that has a higher high and a lower low than the previous candlestick, indicating a reversal of the previous trend. What are the methods of technical analysis? The methods … Read more
The head and shoulders pattern is a technical analysis charting pattern that shows up as a reversal signal in an uptrend. The pattern is made up of three parts: the left shoulder, the head, and the right shoulder. Each part represents a peak in the price, with the head being the highest peak. The pattern … Read more
A short line candle is a type of candle that has a small body and a short wick. This type of candle is often seen as a sign of indecision in the market, as the small body shows that there is little difference between the open and close prices. A short line candle can also … Read more
A mat hold pattern is a technical analysis term used to describe a short-term reversal pattern that forms after an extended period of price consolidation. The pattern is created by a series of price swings that alternate between higher highs and lower lows, with each successive high and low being slightly lower than the previous … Read more
The definition of a breakdown is when the price of an asset falls below a support level, or key level of resistance. This signal is typically seen as a bearish sign, and can be used by technical traders to enter into short positions. How do you study technical analysis? Technical analysis is the study of … Read more
A hanging man candlestick is a bearish signal that typically forms at the end of an uptrend. It is created when the open, high, and close are all within the upper half of the candlestick, and the low is relatively lower than the other three prices. The long upper shadow indicates that the bulls were … Read more
The Parabolic SAR (Stop and Reverse) indicator is a tool used by traders to determine when to enter and exit trades. What are leading technical indicators? There are a few different types of technical indicators that are used by analysts to predict future price movements in the markets. The most common leading indicators are momentum … Read more
A range is the difference between the highest and lowest prices traded during a given time period. The range is a key technical indicator, providing valuable information about the level of trading activity during a given period. A range can be calculated for any time period, but is most commonly used on a daily or … Read more
