Technical Analysis Articles –
Named after Munehisa Homma‘s hometown in Yamagata Prefecture, Japan, Sakata’s Five Methods comprise the following patterns: Three Mountains Pattern, Three Rivers Pattern, Three Parallel Lines Pattern and the Three Methods Pattern. These patterns created the foundation for Homma’s Japanese Candlestick analysis.
Leonardo Pisano, better known by his nickname, Fibonacci, was an Italian mathematician born in Pisa in the 12th century. He is known to have discovered the Fibonacci numbers, said to be based upon observations of the Great Pyramid of Gizeh in Egypt. Fibonacci Numbers are a sequence of numbers where each successive number is the
The long white (or green) bodied Japanese Candlestick is a bullish reversal signal, consisting of a single white candlestick. The long white body shows aggressive buying and that the close is significantly above the open.
The Exponential Moving Average is the most popular of all the versions of the moving average. The exponentially smoothed moving average gives greater weight to recent price data and also includes all the data in the life of the security. The user is able to adjust the weighting for the most recent price data by
RSI was introduced by Welles Wilder in the late 1970’s. Wilder observed that you should initiate the trade when the momentum indicator changes direction only when the average upmove is greater than the average downmove over a given number of days, or the inverse for a sell signal – when the average momentum is relatively