We have gone through 1 candle patterns like Hammer, Hanging Man etc which give us important signals based on the length of their body, tail and color of the body. …
The Shooting Star pattern indicates an end to the existing upward move. It resembles the Inverted Hammer pattern in formation, except for that the Shooting Star occurs at market tops. How to recognize …
A Hanging Man is similar to a hammer, except for the fact that it occurs at the top of a trend in an uptrend. The name comes from the fact that …
Formation: A Inverted hammer is formed in a prevailing downtrend and is a symbol of trend reversal. It forms when the close price of a candle is higher than its opening, and …
Divergence in RSI: Dictionary definition of divergence states that when two things act oppositely it is called divergence. In case of RSI a divergence is seen when prices and their …
Zone Shifts in RSI: In a traditional market the extreme levels of RSI are 70 (overbought level) and 30 (oversold level). Thanks to Andrew Cardwell and his research which gave …
Method 1: When RSI moves into overbought zone (> 70) and then reverts back below overbought zone (<70), then initiate a short trade. Method 2: When RSI moves into …
Bollinger Bands were introduced by John Bollinger, a technical analyst. It is a combination of fundamental and technical analysis called as relative analysis. Bollinger Bands consists of a 20-day simple …