Technical Analysis for Today’s Automated Market

Technical Analysis is not static but continually evolves and changes on tandem with changes to the market structure, especially from the institutional trading venues, platforms, and order flow.

Gravestone Doji

In a Japanese CandleStick chart, this is a doji candle where prices rallied but came back and closed at the level they started; the open and close are equal.

Absolute Price Oscillator (APO)

An indicator based on the difference between two exponential moving averages, expressed in absolute terms. Also known as the MACD indicator, the APO is calculated by subtracting the longer exponential moving average from the shorter exponential moving average. See also: Price Oscillator (PO), Percentage Price Oscillator (PPO).

Exponential Moving Average

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 … Read more

Three Inside Down

Three Inside down is a three candlestick bearish reversal pattern. The formation occurs in an uptrend, with the first two candlesticks being the bearish Harami pattern. This is followed by a black candlestick that closes lower than the first candlestick in the series.

Phi: The Golden Ratio

Also referred to as the golden mean, golden section, golden number or divine proportion, the golden ratio is a number, approximately 1.618, that possesses many unusual mathematical properties. Over two thousand years ago phi was identified by Euclid because of it’s crucial role in the construction of the pentagram. Since then the ratio has been … Read more

Elliott Wave

(1) A theory named after Ralph Nelson Elliott, who contended that the stock market tends to move in discernible and predictable patterns reflecting the basic harmony of nature and extended by other technical analysts to futures markets; (2) in technical analysis, a charting method based on the belief that all prices act as waves, rising … Read more

Standard Deviation Channel

The Standard Deviation Channel consists of two parallel lines on either side of the Linear Regression Trendline. The lines are spaced x number of standard deviations above and below the Linear Regression Trendline.