Three Black Crows Candlestick Pattern

The three black crows Japanese candlestick pattern works in the stock market but occurs too infrequently in the forex and crypto markets to produce statistically significant results. A trader can expect to gain $6.20 on average per $100 risked using an optimal risk-reward ratio. But what would you think if I told you that there’s a better …

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Two Crows Candlestick Pattern

The two crows Japanese candlestick pattern does not work in the stock market, and it occurs too infrequently in the forex and crypto markets to produce statistically significant results. A trader can expect to lose $16.50 on average per $100 risked using a 1:5 risk-reward ratio optimized by profit per bar. But what if I …

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History of Technical Analysis

Technical analysis is a methodology that uses past price and volume data to predict future prices. Here is a chronicle of the history of technical analysis and the significant events that have led to its evolution. When we set out to analyze market movements, the two most essential tools are fundamental and technical analysis. Fundamental …

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Time-Weighted Average Price (TWAP)

Time-weighted average price (TWAP) calculates the weighted average price of the security over a particular time period. TWAP is often implemented as an order execution strategy to execute massive trades by breaking them into equal parts over a trading period to minimize slippage and signaling. What Is TWAP? TWAP or Time-weighted Average Price is a …

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Volume-Weighted Average Price (VWAP)

Volume Weighted Average Price (VWAP) is the average trading price of an asset throughout the day using price weighted by volume. It provides traders an insight into the price trend where volume is highest. Institutions and traders use VWAP to identify buy and sell areas and to help gauge market sentiment. What Is VWAP? VWAP, …

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Stochastic RSI: A More Responsive RSI

The Stochastic RSI (Stoch RSI) is a technical analysis indicator derived from the standard RSI indicator. It identifies potential overbought and oversold conditions in the market and can assist with identifying current market trends. What Is the Stochastic RSI? The Stoch RSI is a popular momentum oscillator developed by Stanley Kroll and Tushar Chande. As …

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Stochastic Oscillator vs. Stochastic Momentum Index

The stochastic momentum index and the stochastic oscillator are technical analysis tools traders use to determine momentum in the market. The stochastic oscillator is a simple indicator showing directional momentum based on its recent closing price. The stochastic momentum index or SMI is a variation of the traditional stochastic oscillator. Some traders use both tools …

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Stochastic Momentum Index (SMI)

The stochastic momentum index (SMI) is a technical analysis indicator that shows price momentum by calculating its closing price distance relative to its median high-low price range. The SMI attempts to improve upon the traditional stochastic oscillator. What Is the Stochastic Momentum Index? The stochastic momentum index (SMI) is a technical analysis tool that analyzes …

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Stochastic Oscillator: Explained & Examined

The stochastic oscillator is a technical analysis momentum indicator used by traders to determine momentum based on a particular asset’s price history. It shows the close relative to the high-low range across several periods. What Is the Stochastic Oscillator? An oscillator is a tool that creates high and low bands in between two extreme values, …

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