Category: Technical Analysis
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The Ichimoku Cloud: A Complete Guide
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The Ichimoku Cloud, also known as the Ichimoku Kinko Hyo, is a versatile technical analysis indicator developed by Goichi Hosoda in the 1930s. After tweaking it for years, Hosoda felt he found the ideal settings for his indicator. Now, it helps traders identify support and resistance levels, gauge trend direction,…
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The Stochastic Oscillator: A Complete Guide
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The Stochastic Oscillator, or Stochastic Indicator, is a popular technical analysis tool that helps traders identify potential overbought and oversold conditions in the market. Developed by George C. Lane in the 1950s, this momentum oscillator measures the position of a security’s closing price, relative to its price range over a…
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The RSI Indicator: A Complete Guide
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The Relative Strength Index (RSI) is a widely-used technical analysis tool among traders. Developed by J. Welles Wilder in 1978, the RSI is a momentum indicator that measures the speed and change of price movements. Wilder even wrote a book about it, called “New Concepts in Technical Trading Systems“, which…
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The MACD Indicator: A Complete Guide
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The Moving Average Convergence Divergence indicator, known as the MACD, is a popular technical analysis tool among all kinds of traders. Invented by Gerald Appel in the 1970s, the MACD has been around for a long time. The fact that it still helps millions of traders today is a testament…
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How to Trade the Doji Candlestick Pattern
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Doji is a japanese word that means blunder, or mistake. In trading, it refers to a candlestick with an identical, or virtually identical, open and close price. Perhaps the Japanese considered it a blunder by the market to have an entire trading session with no meaningful result. For technical traders,…
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How to Trade The Spinning Top Candlestick Pattern
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The spinning top candlestick pattern is a variation of the doji candlestick. But in addition to meeting the criteria for the doji candle, a spinning top features a candle body located in the center of the trading range. Another name for this candle is the long-legged doji. Because this candle…
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How to Trade The Inside Bar (Harami) Candlestick Pattern
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The harami candlestick pattern depicts price struggling to break out in either direction during a trend. Traders often call it this occurrence an “inside day” or “inside bar” instead. So where did the name harami come from? The Japanese say “harami” to mean pregnant. In Urdu, it means illegitimate child.…
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How to Trade The Hanging Man Candlestick Pattern
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The hanging man is a single candle pattern with the same shape as the hammer. It gets its name from the fact that it has a candle body near the top and a long lower wick, resembling a man hanging in the air. Knowing this, you can probably guess where…
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How to Trade The Gravestone Doji Candlestick Pattern
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The gravestone doji, or shooting star, is a single candle pattern that resembles the inverted hammer. I will refer to it as gravestone doji throughout this article and others, though you may call it something else. If this candle appears after an extended bullish run, it is a powerful signal…
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How to Trade The Inverted Hammer Candlestick Pattern
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The inverted hammer candlestick is a single candle pattern in which the candle forms an upside-down “T”. If the body of the candle is so small that it has the same open and closing price, the term doji can apply. Traders refer to this candle with other names, such as…