Fast Stochastic Indicator

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.

J. Peter Steidlmayer

J. Peter Steidlmayer developed the method of technical analysis known as Market Profile in the 1980’s in conjunction with the Chicago Board of Trade. Market Profile is a graphical organization of price and time information.

AB=CD Pattern Keeping it Simple

In 1935 a book was published for sale to investors at an incredible price of $1500. That book was Profits in the Stock Market by H.M. Gartley. On page 249 Gartley describes a chart pattern, “Practical Use of Trend Lines”, which we now call the AB=CD Pattern.

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A Trading Technique using the Inside Bar with the MACD

Technical analysis to predict price action in the financial markets is just another factor used to put the odds in favor of the trader. But relying on any single indicator to provide signals for a trade is not advisable. Since indicators derived from price action are lagging indicators, they confirm a signal only after the move has been initiated.

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3 White Soldiers

Brought to you by: Step 1 – Pull up a Weekly chart of the stock after the market closes for the week (Friday after close). Step 2 – Look for THREE WHITE SOLDIERS against MINOR PRICE RESISTANCE, and/or against the declining Major Moving Average (10 MA, 20 MA, or 50 MA) on the Weekly …

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Abandoned Baby

An unusual reversal pattern on a Japanese Candlestick chart defined by a gap followed by a Doji, followed by another gap in the opposite direction. The shadows on the Doji have to completely gap above or below the shadows of the first and third day. See Bullish Abandoned Baby

Head and Shoulders Top

A Head and Shoulders pattern on the EUR/USD daily chart A bearish reversal pattern defined by three prominent highs with a middle peak, (the head) that is higher than the other peaks (the shoulders). The neckline is drawn beneath the two price lows that separate the head from the shoulders. Downward penetration of the neckline is …

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Head and Shoulders Bottom

A Head and Shoulders Bottom on the USD/CHF daily chart A bullish reversal pattern defined by three prominent lows with a middle low (the head) that is lower than the other lows (the shoulders). The neckline is drawn above the two price highs that separate the head from the shoulders. Upward penetration of the neckline …

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