A Bollinger Band is a technical analysis tool defined by a set of lines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of the security's price, but can be adjusted to user preferences.
Because standard deviation is a measure of volatility, when the markets become more volatile the bands widen; during less...
The Williams% R Technical Indicator Oscillator, may be used to find entry and exit points in the market. The Williams% R ranges from 0 to 100. Values from 0 to -20 are considered overbought while values from -80 to -100 are considered oversold.
Wedge uo Using two trendlines – one for drawing across two or more pivot highs and one connecting two or more pivot lows – convergence is apparent toward the upper right part of the chart.
A Descending Triangle is a very important chart pattern in Forex.
It's a bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows. You have to watch for a move below the lower support trend line because it suggests that the...
A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines...
The wedge down or falling wedge pattern is a continuation pattern formed when price bounces between two downward sloping, converging trendlines. It is considered a bullish chart formation but can indicate both reversal and continuation patterns depending on where it appears in the trend.
A channel is drawn from trendlines charted along the support and resistance levels of a security’s price series. In general, channels can be used to pinpoint optimal support and resistance levels to buy or sell securities. Overall, channels are used broadly by technical traders to identify and follow the trends of securities over time.
A descending channel is one...
Upside trend refers to the potential increase in value, measured in monetary or percentage terms, of an investment. A higher upside means that the stock has more value than is currently reflected in the stock price.
The Double Top is a bearish reversal pattern typically found on bar charts, line charts, and candlestick charts. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between.
A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. This pattern is believed to be one of the most reliable trend reversal patterns, and predicts a bullish-to-bearish trend reversal.
