average true range formula What is average day range? The average day range is the average distance between the high and low prices of a security over a given period of time. For example, if the high and low prices of a security over the past 10 days have been as follows: Day 1: $10.00 … Read more
An envelope is a technical analysis tool used to measure volatility and price movements. It is constructed by adding and subtracting a certain percentage from a moving average. Envelopes are used to identify trends and possible reversal points. The percentage used to construct an envelope is typically between 2% and 5%. The moving average can … Read more
A stick sandwich is a candlestick charting pattern that is composed of three candlesticks. The first candlestick is a long bearish candlestick that closes near its low. The second candlestick is a short candlestick (either bullish or bearish) that opens and closes within the body of the first candlestick. The third candlestick is a long … Read more
The Upside Tasuki Gap is a candlestick pattern that is used to signal a potential reversal in an uptrend. The pattern is composed of three candlesticks, with the first and third candlesticks being bearish and the middle candlestick being bullish. The pattern is considered to be a bullish reversal pattern when it forms in an … Read more
In technical analysis, a piercing pattern is a bullish signal that occurs when a stock price declines significantly, then rebounds and closes above the midpoint of the prior decline. The pattern is considered significant when it occurs after a prolonged downtrend, as it suggests that the bears are losing control and the bulls are gaining … Read more
The Kijun-Sen is a technical indicator used in the fields of finance and investing. It is also known as the Base Line indicator. The Kijun-Sen is used to measure the momentum of a security or market. The indicator is calculated by taking the average of the highest high and the lowest low over a given … Read more
The zone of resistance is the area on a price chart where selling is likely to occur. It is typically defined as the area between a recent high and a recent low. The zone of resistance can also be thought of as the area where supply is greater than demand. The zone of resistance is … Read more
The exit point is the specific price level at which an investor plans to sell their position in a security. This price is typically based on an analysis of technical indicators, such as support and resistance levels, chart patterns, or moving averages. For example, an investor looking to exit a long position in a stock … Read more
The term “pullback” is used to describe a temporary reversal in the price of an asset after a prolonged period of upward or downward movement. A pullback typically represents a reaction to an overbought or oversold condition, and may also signal a change in trend. When prices are in an uptrend, pullbacks can provide buying … Read more
The 52-week range is the highest and lowest prices that a stock has traded at in the last 52 weeks. The 52-week range is a good indicator of a stock’s volatility. A stock’s price is considered to be volatile if it trades within a wide range. Should you buy stock at 52 week high? There … Read more
