The Breakaway pattern is a five candle reversal formation that occurs during a trend. The first candle in the formation is long, in the direction of the trend. The second candle is also long gaps away from the first in the direction of the trend. The third candle can be either color, but does not
Kicking is a two candlestick bearish reversal pattern. The pattern occurs during an uptrend, beginning with a black Marubozu candlestick. The second candlestick gaps below the open of the first and is a white Marubozu.
The Kicking Japanese Candlestick is a two candle reversal pattern. A bearish Kicking formation consists of a white marubozu followed by a black marubozu which gaps open below the first candle’s opening price.
The Linear Regression Channel is created by drawing parallel lines above and below the Linear Regression trendline using two standard deviations. A Linear Regression Trendline is a straight line drawn through a chart of a security’s prices using the least squares method. The bottom channel line indicates support and the top channel line indicates resistance.
Developed by Welles Wilder and explained in his book, New Concepts in Technical Trading Systems, the Directional Movement Indicator can be used by itself or as a filter on a trend-following system. The DMI helps determine if a security is trending. In a DMI study, two lines are generated: +DI and -DI. The first line