What Is The Morning Star Candlestick Pattern & How To Trade With It

Morning Star Candlestick Pattern

The Morning Star is a bullish reversal pattern that appears on the bottom of a downtrend. It consists of three main candles. It often indicates the ending of a downtrend and the beginning of an uptrend. What is the Morning Star Candlestick Pattern? The Morning Star is made up of a large candle, followed by a small candle, and a third long candle. The first candle is bearish. It suggests bears are in charge, and the price is making new lows. The second candle has a small body and a long wick. It can be bullish or bearish. It shows …READ MORE

What Is The Hanging Man Candlestick Pattern & How To Trade With It

Hanging Man Candlestick Pattern

The Hanging Man Candlestick Pattern appears in an uptrend. It represents a bearish pattern with a drop in price. The Pattern consists of a small body with a long lower wick and a little or no upper wick. It looks similar to alphabet T. What is the Hanging Man Candlestick Pattern? The Hanging Man describes that the bulls are losing control, and the market is declining, showing the dominance of bears. Its long lower wick shows a significant sell-off, which pushes the price downwards before the buyers push the price closer to the opening levels. Thomas Bulkowski, in his book …READ MORE

What Is The Hammer Candlestick Pattern & How To Trade With It

Hammer Candlestick Pattern

The Hammer Candlestick pattern is a bullish reversal pattern that appears at the bottom of a downtrend. It consists of a small body, having a little or no upper wick, and a long lower wick. It looks like a hammer and the alphabet T. What is a Hammer Candlestick Pattern? The Hammer Candlestick Pattern suggests that the price dropped to a new low, but the buying pressure moves the price to a high, signaling a possible reversal. Hammer’s body defines the difference between the opening and closing prices, while its wick represents the high and low price for the period. …READ MORE

What Is The Evening Star Candlestick Pattern & How To Trade With It

Evening Star Candlestick Pattern

An Evening Star Candlestick Pattern is often used to detect a trend reversals. It consists of three candlesticks referring to a bearish pattern. The Evening Star appears when the market is in an uptrend, signifying the potential that a trend is about to end. What is the Evening Star Candlestick Pattern? The Evening Star is not just a combination of three candlesticks. Instead, it requires an understanding of the previous price action and an existing trend. The Evening Star Candlestick Pattern emerges when the first candle is bullish, followed by a bearish/bullish candle, and the third is a bearish candle. …READ MORE

What Is The Doji Candlestick Pattern & How To Trade With It

Doji Candlestick Pattern

A Doji candlestick Pattern can represent indecision in the market. This means neither the bull nor the bear is in control. In Japanese (the origin of candlestick patterns were from Japan), the word Doji means mistake. What is the Doji Candlestick Pattern? The Doji Candlestick looks like a cross or a plus sign. The upper and lower wicks are of equal length. It forms when a forex pair or a stock opens and closes at the same level, leaving a small cross-shaped body. There are times when sellers and buyers are hesitant to make their move. This is what Doji …READ MORE

What Is The Range Expansion Index & How To Trade With It

Range Expansion Index

The Range Expansion Index indicator or REI indicator for short, is a market-timing oscillator. It measures the strength and weakness of a trend based on the price changes. Tom Demark introduced it in his book The New Science of Technical Analysis. The Range Expansion Index indicator can be used on your trading platform charts to help filter potential trading signals as part of an overall trading strategy. What is the Range Expansion Index? The Range Expansion Index uses arithmetic calculations and filters false signals in a mor complex manner than exponentially calculated indicators like MACD. The indicator oscillates between the …READ MORE

What Is The Range Action Verification Index & How To Trade With It

Range Action Verification Index

The Range Verification Index or RAVI is used to identify the trending market. Introduced by Tushar Chande in his book Beyond Technical Analysis, RAVI shows the difference between the current prices and the past prices in percentage. The Range Action Verification Index indicator can be used on your trading platform charts to help filter potential trading signals as part of an overall trading strategy. What is the Range Action Verification Index? Chande suggested two lines of the RAVI for its dependence on the market.; 3% and -1%. He mentioned the 13-day SMA as the source of indicator. It shows the …READ MORE

What Is The KST Oscillator & How To Trade With It

KST Oscillator

The KST Oscillator or Know Sure Thing Oscillator is a momentum-based oscillator. Developed by Martin Pring, the oscillator makes the rate-of-change readings smooth for the traders. It gives the four different timeframe readings, measuring their momentum and combining them into a single momentum oscillator. The KST Oscillator indicator can be used on your forex trading platform charts to help filter potential trading signals as part of an overall trading strategy. What is the KST Oscillator? In the 1992 edition of Stocks and Commodities article, Pring describes the KST Oscillator as “Summed Rate of Change.” The indicator gets its name Know …READ MORE

What Is The Inertia Indicator & How To Trade With It

Inertia Indicator

In Physics, inertia is a continuous motion of the body until an outside force acts upon it. In financial markets, the concept of inertia was given by Donald Dorsey in the 1995 issue of Technical Analysis of Stocks and Commodities through the Inertia Indicator. The Inertia Indicator is moment-based and is an extension of Dorsey’s Relative Volatility Index (RVI). It defines the long-term trend and the distance of its extension. What is the Inertia Indicator? Dorsey stated that a trend is an “outward result of inertia.” According to him, the market takes greater force to reverse its course than to …READ MORE