COMMODITY CHANNEL INDEX (CCI) used in identifying cyclical trends in commodities, equities and currencies Donald Lambert introduced the CCI (an oscillator) in an article published in the October 1980 issue of Commodities magazine (now...
AVERAGE DIRECTIONAL INDEX (ADX) an indicator of trend strength J. Welles Wilder created the Average Directional Index in 1978 as an indicator of trend strength in a series of prices of a financial instrument....
ADVANCE DECLINE LINE (ADL) measures the number of individual stocks participating in a market rise or fall Definition The ADL is a stock market indicator used by speculators to measure the number of individual...
ACCUMULATION/DISTRIBUTION INDEX (ADI) A cumulative total volume analysis indicator Marc Chaikin created the ADI as a cumulative total volume technical analysis indicator. The ADI adds or subtracts each day’s volume in proportion to where...
FLAG AND PENNANT PATTERN just a breather Characteristics: 1. There is a clear direction of the price trend; 2. This is followed by a consolidation and range bound movement; and 3. Next is the...
WEDGE PATTERN a temporary stop of the primary trend Characteristics: 1. It is a contracting range in prices; 2. This is coupled with an upward trend in prices (the rising wedge) or 3. It...
TRIPLE TOP PATTERN a good time to sell Characteristics: 1. Volume is usually low during the second rally up and lesser during the formation of the third top; 2. The peaks may not be...
DOUBLE TOP PATTERN buyers and sellers taking turns Characteristics: 1. A financial instrument runs up to a particular level; 2. It then drops back from that level; then 3. Makes a second run at...
CUP AND HANDLE PATTERN (CAHP) a cup preceding its handle Characteristics: 1. A cup and handle formation should follow a trend increase, ideally one that is a few months old; 2. The cup must...
TREND LINES a bounding line for the movement of a security Definitions: 1) When you can draw a diagonal line between two or more price pivot points, you can then form a trend line....
HEAD AND SHOULDERS PATTERN (HASP) a head and two shoulders Characteristics: The HASP has a structure that is visually similar to that of a head with two shoulders. It has four elements: 1. A...
BULLISH WHITE OPENING MARUBOZU (BWOM) A white that has a upper shadow but has no lower shadow. Characteristics: 1. A BWOM does not have a lower shadow but it has an upper shadow; 2....
BULLISH WHITE CLOSING MARUBOZU (BWCM) a white body that has a lower shadow but no upper shadow Characteristics: 1. A BWCM has a lower shadow but it has no upper shadow; 2. When the...
BULLISH WHITE MARUBOZU (BWM) A white body that has no lower or upper shadow Characteristics: 1. It does not have a lower or upper shadow; 2. When the day opens, it goes up all...
BULLISH LONG WHITE CANDLESTICK (BLWC) A white body with upper and lower shadows Characteristics: 1. The body of the BLWC is relatively long relative to other candlesticks; and 2. The sizes of the upper...