Technical Analysis Articles –
By Alan Hull, AlanHull.com The MACD, Moving Average Convergence Divergence, indicator is probably the most popular indicator in use today. It is also one of the most misunderstood, with it often being described amongst chartists as ‘An average of an average’. Before we begin to dissect the MACD indicator it is necessary to mathematically define
An inside day is a day where the range is contained within the preceding day’s range. For a valid inside day breakout set up there should be at least two consecutive inside days. The more inside days in a row, the greater the chance of the volatility breakout trade occuring. Longer term timeframes such as
The Morning Star is a three candle bullish reversal pattern that occurs during a downtrend. The first day of the Japanese Candlesticks pattern is part of the downtrend with a long black body. The following day gaps lower and has a small white body. The last day is a white candlestick that closes above the
In Neck Line is a two candlestick continuation pattern. The bullish in In Neck Line formation occurs during an uptrend, with a long bodied white candlestick. The second candlestick gaps up but fails to advance further and closes around the top of the prior candlestick’s body.
A three candle bullish reversal pattern. The first candle is in a downtrend with a long black real body. The following candle opens lower and has a small trading range. The last candle in the series is white and closes above the midpoint of the first candle.