Moving Average Definition: Moving averages are indicators that pave or soften a greater or lesser extent, the evolution of prices, so that eliminate certain fluctuations, whether short, medium or long term. A moving average is represented by a line to be calculated as an average or mean value of a given set of prices or …

What is Moving Average in Technical Analysis? Definition, Examples, Types and Strategy Read More »

The amount that a financial asset has traded over a given time period is measured by its trading volume. Based on the total number of shares traded in a stock, volume is calculated. The quantity of contracts traded in futures and options trading determines the volume. Traders use volume to assess liquidity, and they combine …

What is Volume in Technical Analysis? Definition with Examples of Indicators Read More »

Support and resistance are the two fundamental ideas on which technical analysis is built. It is necessary to understand the definitions and applications of these terms in order to interpret price charts effectively. Prices are affect by both supply and demand. Prices rise when supply is insufficient to meet demand. When supply and demand are …

What is Support and Resistance? Definition and Examples with Upward Trend Read More »

Multiple Candlestick Patterns Definition: In multiple candlestick patterns, there are two or more candles to indicate the trading behavior of the stock. In this chapter, we will discuss the trading types of candlestick patterns in detail. In previous chapter, we knew about various single candlestick patterns including bullish marubozu, bearish marubozu, the spinning top and doji. …

Technical Analysis: Different Types of Multiple Candlestick Patterns. Definition with Examples Read More »

Single Candlestick Pattern Definition: In a single candlestick pattern, there is only one candle to show the trading action for the day. The length of the candle shows the trading implication. The longer a candle is the more will be the selling or buying activity. Similarly, a shorter candle portrays less trading activity. Let us …

Technical Analysis: Different Types of Single Candlestick Patterns. Definition with Examples Read More »