Technical Analysis Archives - Page 3 of 7

Trading Was Hard Until I Understood These 3 Concepts

The Complete Guide to Technical Analysis Price Patterns

candlestick patterns cheat sheet, Candlesticks, Chart Patterns, Chart Reading, Technical Analysis / Steve Burns

Website Articles Table of Contents with Links: What is Technical Analysis? Does Technical Analysis Work? What causes a Chart Pattern? How to Draw Trendlines on a Chart Bullish Pennant pattern Bullish Flag pattern Bearish Flag pattern Rising Wedge pattern Falling Wedge pattern Triangles pattern Symmetric Triangles pattern Ascending Triangles pattern Descending Triangles pattern Cup and […]

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What is a Gap in Stocks?

Technical Analysis / Steve Burns

A gap in stocks is when a chart skips over levels of prices and starts trading higher or lower than the last candle without a direct path through all previous prices. Gaps on charts are momentum signals in technical analysis in the direction of the gap. On an intraday chart if an opening gap versus

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Consolidating Stock

Chart Patterns, Chart Reading, Technical Analysis / Steve Burns

A consolidating stock is one that forms a trading range on its chart. A stock under consolidation will have defined resistance above price action and support below that acts as barriers to short-term movement. Stocks and markets go through different cycles of uptrends, downtrends, trading ranges, and volatility, the consolidation period is the one where

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Bear Trap Stocks

Short squeeze, Technical Analysis, Technicals / Steve Burns

What is a bear trap? Bear trap stocks are ones that have already fallen a lot in price and traders continue to sell it short believing it will continue to fall and make lower and lower prices. These bear trap stocks can create extreme bearishness luring in more and more short sellers after it has

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Fill the Gap Stock

Price Action Trading, Technical Analysis / Steve Burns

A gap in price on a chart shows that there were no buyers and sellers connecting at price levels from a closing level to the next opening level. Gaps happen when sudden news comes out that changes prices to higher or lower degree than expected. New information can be priced in by buyers and sellers

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Awesome Oscillator Explained

Technical Analysis, Technical Indicators / Steve Burns

Awesome Oscillator was developed by Bill Williams. The Awesome Oscillator (AO) is a non-limiting oscillator used in technical analysis. It quantifies the weakness or the strength of price on a chart. The Awesome Oscillator measures the price momentum in one direction, confirms trends and can also show when momentum is waning and signal the potential

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Keltner Channel Explained

Technical Analysis, Technical Indicators / Steve Burns

Keltner Channels are a technical indicator shown visually as envelopes expressing the deviation in Average True Range on a chart both above and below an exponential moving average. It is very similar in principle to Bollinger Bands, which use standard deviations from a moving average to quantify the bands. The difference is that Keltner Channels

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Parabolic SAR Explained

Techncial Indicators, Technical Analysis, Technical Indicators, Technicals / Steve Burns

The Parabolic SAR (stop and reverse) indicator is a technical trading tool that quantifies both trends and price reversals on a chart and can be used as a stop loss, trailing stop, or entry signal. The Parabolic SAR indicator was created as a trend following tool that allowed winning trades to run until they stopped

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Supertrend Indicator Explained

Technical Analysis, Technical Indicators / Steve Burns

The Supertrend is a trend trading indicator used to define the path of least resistance on a chart. The SuperTrend is a technical indicator that signals the direction of current momentum. It uses the Average True Range to calculate its value. It generates buy and sell signals as price moves through the current indicator value,

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Market Profile Explained

Market Profile, Technical Analysis / Steve Burns

Market Profile is an intraday technical analysis process that records price on the vertical axis and time activity on the horizontal axis of a chart. This strategy was developed by J. Peter Steidlmayer when he was trying to determine and evaluate market value as it developed on the daily chart. The chart displays price on

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