The downside gap three methods is a three-bar bearish continuation Japanese candlestick pattern that is best traded using a bullish mean reversion strategy according to backtests spanning multiple decades. If you’re a candlestick technical analyst, you might be surprised that …
The upside tasuki gap is a rare three-bar bullish continuation Japanese candlestick pattern that suggests near-term volatility is likely. Crypto and forex traders who rely on history instead of luck should avoid these patterns due to insufficient daily data to …
The bearish abandoned baby is an extremely rare Japanese candlestick pattern that suggests near-term volatility is ahead, according to a multiple-decade backtest. This pattern occurred only a few times in the stock market and did not occur in the crypto …
The advance block is a three-bar bearish reversal Japanese candlestick pattern. Traditional technical analysis believes this pattern suggests a trend reversal, but history shows that near-term volatility is more likely. I tested every candlestick pattern, and the data shows that …
Episodic Pivots are a trading pattern that occurs when a stock’s story changes significantly, represented by a 10% or more price move due to an earnings announcement or catalyst. Understanding and exploiting the episodic pivot pattern is one of the …
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 …
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 …
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 …
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 …
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 …