A double exponential moving average (DEMA) is a type of moving average that places more weight on recent data points than a simple exponential moving average (EMA). The double exponential moving average is calculated by applying a weighting factor to the standard exponential moving average. The weighting factor is based on the exponential decay of … Read more
Volume is one of the most important technical indicators. It is used to measure the number of shares or contracts traded in a given period of time, usually a day. It is also used to identify potential trends and reversals. When the volume is high, it means there is a lot of interest in the … Read more
Consolidation is a pause in the market where price action gets squeezed into a tight range. This range can be defined by support and resistance levels. Consolidation typically happens after a sharp price move in either direction and can last for a period of days or weeks. The key to trading consolidation is to identify … Read more
. What is the Darvas Box Theory? The Darvas Box Theory is a trading strategy that was developed by Nicolas Darvas in the 1950s. It is based on the idea that price movements in the stock market can be predicted by looking at the patterns that emerge from the trading data. How do you trade … Read more
The Prisoner’s Dilemma is a scenario used in game theory in which two players must decide whether to cooperate or defect, knowing that the other player is making the same decision. The dilemma is that if both players defect, they will both be worse off than if they had cooperated. However, if one player defects … Read more
A bulge is a type of chart pattern that is created when the price of a security extends higher or lower than its previous trading range. Bulges can be either bullish or bearish, depending on the direction of the price move. Bullish bulges are typically seen as a sign of strong buying pressure and are … Read more
A bullish abandoned baby is a candlestick pattern that is used to signal a reversal in a downtrend. The pattern is composed of three candlesticks, with the first being a long bearish candlestick, followed by a doji candlestick (which has a small body with long upper and lower shadows), and finally a long bullish candlestick. … Read more
A diamond top formation is a technical analysis chart pattern that is created when the price of an asset forms two peaks at approximately the same level, with the second peak being slightly lower than the first. This pattern is considered to be a bearish reversal signal, as it indicates that the asset’s price is … Read more
The term “toppy” is used to describe a market that is thought to be overbought or overvalued. A toppy market is one that is ripe for a pullback or correction. Toppy markets are often characterized by high levels of buying activity followed by a period of consolidation or sideways price action. This can be seen … Read more
The opening range is the interval of time between the opening bell of a trading session and the first period of trading during that session. The opening range is a key concept in technical analysis, as it is believed to contain important information about the trading day ahead. For example, if the opening range is … Read more
