Fibonacci Arcs are created on a chart by first drawing a trendline between two extreme points, a trough and opposing peak. Three arcs are generated that are centered on the second extreme point and intersect the trendline at Fibonacci Levels, usually of 38.2%, 50% and 61.8% of the distance between a price maximum and minimum. …
Introduced by George Lane the stochasic process is derived from the idea that as prices increase, closing prices are often closer to the upper end of the price range. Conversely, in downtrends the closing price tends to be near the lower end of the trading range.
On a Japanese Candlestick chart, a two day reversal pattern that has a small body day completely contained within vertical range of the previous larger candle’s body. This formation suggest that the previous trend is coming to an end. The smaller the second candlestick, the stronger the reversal signal. See: Bullish Harami