TopDealsNet Blog
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9 min readThe Dark Cloud Cover pattern is a bearish reversal candlestick pattern that occurs in technical analysis. It is formed by two candlesticks, typically found at the end of an uptrend, suggesting a potential reversal of the current trend. Here is how you can identify and interpret the Dark Cloud Cover pattern:Candlestick 1: The first candlestick in the pattern should be a bullish candle with a long body, indicating an upward movement.
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10 min readThe Shooting Star pattern is a popular candlestick pattern used by technical analysts to identify potential reversals in the price of an asset. It is formed when a bullish trend is followed by a small-bodied candlestick, often referred to as the "star," with a long upper shadow and little to no lower shadow.
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10 min readThe Three Black Crows is a bearish candlestick pattern that can be observed on a price chart. It signifies a potential reversal in an uptrend. This pattern consists of three consecutive long-bodied bearish candlesticks, each with a lower close compared to the previous day. Here is how you can recognize and interpret the Three Black Crows pattern:Recognition:Look for an established uptrend in the price chart.The first candlestick in the pattern should be a long bullish candlestick.
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7 min readThe Volume Weighted Average Price (VWAP) is a technical indicator that calculates the average price of a security throughout the trading day, taking into account both the price and the volume traded. It helps traders and investors to identify the average price at which a stock has traded during a specific period.
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7 min readThe Moving Average Convergence Divergence (MACD) histogram is a popular technical analysis indicator used to identify potential changes in price momentum. It is derived from the MACD line, which is created by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. The MACD histogram presents the difference between the MACD line and its signal line, which is a 9-day EMA of the MACD line.
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7 min readThe Keltner Channels is a technical indicator that can be used to identify potential trading opportunities in financial markets. It consists of three lines: a middle line, an upper band, and a lower band. The middle line is typically a moving average of the asset's price, while the upper and lower bands are calculated by adding and subtracting a multiple of the average true range (ATR) from the middle line.
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6 min readMoving Max is a trading strategy or indicator used in day trading to identify the maximum price level that a specific security has reached within a predefined time frame. It is often used by traders who aim to capitalize on short-term price momentum and anticipate price reversals.The Moving Max strategy involves plotting a moving average line on a price chart, typically a simple moving average (SMA) or an exponential moving average (EMA).
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7 min readWhen it comes to scalping in trading, the Rate of Change (ROC) indicator can be a helpful tool. The ROC measures the percentage change in price over a specified period of time and is commonly used to identify momentum shifts in the market. Here is an overview of how to trade with ROC for scalping:Understanding the ROC indicator: The ROC indicator is typically displayed as a line on a price chart.
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10 min readThe Average Directional Index (ADX) is a popular technical indicator used to measure the strength of a trend in the financial markets. Developed by J. Welles Wilder, the ADX helps traders and investors determine the presence and strength of a prevailing trend, regardless of whether it is an uptrend or downtrend.To apply the ADX indicator, you need to follow a few steps:Plotting the ADX line: The ADX itself is plotted on a separate chart window below the main price chart.
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8 min readThe Volume Price Trend (VPT) is a technical analysis tool used in trading to analyze the relationship between volume and price movements in a particular security or market. The VPT is primarily used to identify the strength of a price trend and to confirm or predict potential reversals. It was developed by Joseph E. Granville, a renowned technical analyst.The VPT is based on the concept that volume precedes price movements.
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6 min readIn technical analysis, price channels are an important concept used to identify and interpret the direction and trend of a financial instrument's price movement. A price channel consists of two parallel trendlines that enclose the price within a range.To identify a price channel, start by looking for a series of higher highs and higher lows, or lower highs and lower lows. These points represent the swing highs and swing lows of the price movement.