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 …
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 …
The Ichimoku Cloud is a technical indicator that tries to quantify support and resistance, it identifies the direction of the trend, and measures the momentum to create potential trading signals. The original name of this indicator was the Ichimoku Kinko Hyo which translates to English as “one look equilibrium chart”. This name tries to express …
Volume is like votes on the price of a stock as each trade is an agreement between a buyer and a seller to exchange shares. The volume is the amount of trades that occur during each time period on a chart. Technical traders look for correlations between price action trends and the increasing and decreasing …
The Stochastic Oscillator is a momentum indicator that measures the location of the closing price on a chart in relation to the high to low trading range over a period of time. This indicator was created by George C. Lane in the late 1950s. The Stochastic Oscillator isn’t following the trend in price or volume, …
The Chaikin Money Flow or CMF is a technical indicator created by Marc Chaikin and is a volume-weighted average of accumulation and distribution over a specific period of time. The standard time period used for this indicator is 2o days and is usually the default setting on many charting platforms. The CMF sums money flow …
The CCI indicator (commodity channel index) is an oscillator originally created in 1980 by Donald Lambert . He developed CCI originally to identify and quantify cyclical moves in commodity charts, but this technical indicator has also been used on stock indexes, exchange traded funds, stocks and charts of other markets. It can be used as …
The MACD-Histogram quantifies the distance between MACD and its 9-day EMA signal line. The histogram reads positive when MACD is above its 9-day EMA and reads negative when the MACD is below its 9-day EMA. The MACD-Histogram is a technical oscillator that moves both above and below the zero line on its chart. The MACD-Histogram …
Technical analysis is the art and science of reading price action on a chart. Here is a quick reference guide that can be used as a cheat sheet. A range bound market can be identified by horizontal upper resistance and horizontal lower support. When price breaks out of a trading range it can signal the …
This is a Guest Post by AK of Fallible. In this video we’re going to talk about what happens when you combine fundamentals and technical analysis. We’ll be answering the old question…. which is better? Fundamental or technicals? Learn More About The Price Action Masterclass Here: https://macro-ops.com/f-masterclass-yt/ Watch More Of Our Videos: Check Out Our Analysis …
