Welcome to the My Stock Market Power technical analysis education center. Investors can utilize the below trading articles to learn about technical analysis, chart patterns and candlestick charts.
The absolute breadth index (ABI) is a momentum indicator measuring the amount of volatility on the New York Stock Exchange. The indicator is used by long-term investors to gauge when a market is in a sustainable bull or bear market.
The advance block is a variation of the three white soldiers formation. Generally two of the three candlesticks that make up the advance block have lengthy upper shadows, thus implying the bullish trend is at risk. The advance block is a bearish candlestick reversal pattern.
The Advance Decline Ratio is used to measure the strength of the market over period of time. A higher trending A/D line indicates money flow into the market.
The Andrew's Pitchfork is a three parallel trend line indicator used in technical analysis to assess the trend of the market. The Andrews Pitchfork creates a trend channel by extending trend lines from a significant peak and trough on the price chart.
Traders use the arms index to spot the increase or decrease of volume for stocks on an intra day basis. The arms index is also referred to as the TRIN (Trading Index) and is primarily a short-term trading tool.
The Aroon indicator anticipates when a security is changing from an impulsive move to a trading range and vice versa. The aroon indicator plots the Aroon Up and the Aroon Down and trading signals appear when these two lines cross one another.
The ascending triangle pattern is a bullish continuation formation that can occur in both bull and bear markets. The ascending triangle is one of the oldest chart patterns in technical analysis and works on any trading time frame.
A bar chart is a visual display of an underlying security's price activity. This includes the high, low, and closing price of the underlying security for a fixed period of time.
Trading with bollinger bands can produce a consistently profitable trading system. Traders can use the bollinger band squeeze and riding the bands techniques to stay on the right side of the market.
A breakaway gap represents a gap in the movement of a stock that comes with high volume. The gap is represented by an opening price which is considerably higher than the previous day's closing price.
The breakaway pattern is comprised of five candlesticks that initiate explosive counter moves. The breakaway pattern can take place in both bull and bear markets.
A Broadening Top is a powerful chart reversal pattern comprised of three peaks and two bottoms. It often leads to sharp, steep declines which quickly erase previous gains.
Bullish Percent Index The bullish percent index (BPI) is a market breadth indicator. The indicator is calculated by taking the total number of issues in an index or industry that are generating point and figure buy signals and dividing it by the total number of stocks in that group.
Learn to trade powerful reversal candlestick formations such as the hammer, hanging man, and engulfing pattern. These reversal patterns produce stronger counter moves for making quick profits in the market.
CCI is a technical indicator which was originally designed to identify cyclical turns in commodities. The CCI was later adopted by equities traders and is now a common technical indicator in the trading world
The Commodity Selection Index (CSI) is a momentum indicator that uses the ADXR component of the Directional Movement indicator to select commodities suitable for short-term trading.
The concealing baby swallow resembles the three black crows pattern and is comprised of black marubozus. This setup is an early sign that the current downtrend is coming to an end.
A dark cloud cover is a bearish candlestick reversal that occurs at the end of up trends. The dark cloud cover is the counterpart to the piercing line pattern.
A dead cat bounce is a trading term used to define when a stock in a severe decline has a sharp bounce off the lows. A dead cat bounce occurs due to the enormous amount of short interest in the market.
A descending triangle is a bearish continuation formation that can occur in both bull and bear markets. The descending triangle is one of the oldest chart patterns in technical analysis.
The descent block is a variation of the three black crows formation. Two of the three candlesticks that make up the descent block have lengthy lower shadows, thus implying the bearish trend is near its end.
An exhaustion gap comes at the end of an impulsive move. The gap is accompanied by an abnormal increase in volume, followed by a sharp reversal in price.
Exponential Moving Average (EMA)is a technical indicator that calculates the weighted average of the closing price for an asset. The exponential moving average places the most weight on the current price value.
The fifty percent retracement level provides great trading opportunities for joining the primary trend. It is one of the most popular fibonacci retracement levels.