Created by W.D. Gann, a method of predicting price movements through the relation of geometric angles in charts depicting time and price. The ideal balance between time and price exists when prices move identically to time, which occurs when the Gann angle is at 45 degrees. In total, there are nine different Gann angles that are important for identifying trend lines and market actions. When one of these trend lines is broken, the following angle will provide support or resistance.
A type of pattern used in technical analysis to predict a reversal in the current trend. A fractal pattern consists of five bars and is identified when the price meets the following characteristics:1. A shift from a downtrend to an uptrend occurs when the lowest bar is located in the middle of the pattern and two bars with successively higher lows are positioned around it.2. A shift from an uptrend to a downtrend occurs when the highest bar is located in the middle of the pattern and two bars with successively lower highs are positioned around it. Fractal signals are most useful when used in conjunction with other technical indicators, such as Fibonacci retracement or various moving averages. It should be noted that this is not a widely used indicator, so it may not be available for every type of charting application. But various third parties have developed various plug-ins which make using fractals possible.
1. A graphical representation, similar to a bar chart in structure, that organizes a group of data points into user-specified ranges. The histogram condenses a data series into an easily interpreted visual by taking many data points and grouping them into logical ranges or bins. 2. The MACD histogram is a very common technical indicator that illustrates the difference between the MACD line and the trigger line. This difference is then plotted on a chart in the form of a histogram to make it easy for a trader to determine a specific asset's momentum. 1. Histograms are commonly used in statistics to demonstrate how many of a certain type of variable occurs within a specific range. For example, a census focused on the demography of a country may use a histogram of how many people there are between the ages of 0 and 10, 11 and 20, 21 and 30, 31 and 40, 41 and 50 etc. This histogram would look similar to the graph above.2. MACD histograms are a popular tool used in technical analysis to gauge the strength of an asset's momentum. An increasing MACD histogram signals an increase in upward momentum while a decreasing histogram is used to signal downward momentum.
An index that seeks to provide confirmation of a market trend by comparing the daily number of stocks reaching new 52-week highs with the number reaching new 52-week lows on a broad equity index. It is calculated by dividing the number of high stocks and low stocks by the total number of trades on that day. The high-low index is considered bullish if it is positive and rising and bearish if it is negative and falling. Since the index can be quite volatile on a day-to-day basis, market technicians generally use a moving average on the data to smooth out the daily swings.
A type of candlestick chart that shares many characteristics with standard candlestick charts, but differs because of the values used to create each bar. Instead of using the open-high-low-close (OHLC) bars like standard candlestick charts, the Heikin-Ashi technique uses a modified formula:Close = (Open+High+Low+Close)/4Open = [Open (previous bar) + Close (previous bar)]/2High = Max (High,Open,Close)Low = Min (Low,Open, Close) The Heikin-Ashi technique is used by technical traders to identify a given trend more easily. Hollow candles with no lower shadows are used to signal a strong uptrend, while filled candles with no higher shadow are used to identify a strong downtrend. This technique should be used in combination with standard candlestick charts or other indicators to provide a technical trader the information needed to make a profitable trade.
A technical analysis term used to describe a chart formation in which a stock's price: 1. Rises to a peak and subsequently declines.2. Then, the price rises above the former peak and again declines.3. And finally, rises again, but not to the second peak, and declines once more.The first and third peaks are shoulders, and the second peak forms the head. The "head-and-shoulders" pattern is believed to be one of the most reliable trend-reversal patterns.
A technical analysis indicator, developed by P.N. Haurlan, that is used to detect market breadth. There are three components of the Haurlan index: Short Term: a 3-day exponential moving average is taken of the net NYSE advances over declines.Intermediate Term: same, using a 20-day exponential moving average.Long Term:same, using a 200-day exponential moving average. Each of the three components is used to detect a different movement, whether it is momentum, breakouts, or resistance.
A trend indicated by a large candlestick followed by a doji that is located within the top and bottom of the candlestick's body. This indicates that the previous trend is about to reverse. A Harami cross can be either bullish or bearish, depending on the previous trend. The appearance of a Harami Cross, rather than a smaller body, increases the likelihood that the trend will reverse.