Technical analysis

How to Read Candlestick Wicks and Shadows Learn what candlestick wicks reveal about intraday buying and selling pressure, and how wicks change the meaning of the candle body.

How to Read the New Highs–New Lows Indicator The new highs–new lows indicator tracks the daily count of stocks hitting 52-week peaks versus troughs. Learn how to interpret its ratio and what expanding new lows signal during uptrends.

Hull Moving Average An adaptive moving average developed by Alan Hull that reduces lag and improves responsiveness through weighted sublayer construction.

Ichimoku Cloud How the five Ichimoku lines encode support, resistance, momentum, and trend direction in a single overlay.

Ichimoku Cloud Color Change: What a Shift From Red to Green Signals What ichimoku cloud color change means and how traders interpret a shift from red to green as a bullish trend reversal signal.

Ichimoku Cloud Thickness as a Support and Resistance Gauge Understand how the width of the Ichimoku Kumo cloud signals the strength or weakness of support and resistance zones in technical analysis.

Ichimoku Cloud Trend Signals The Ichimoku Cloud is a five-component system that uses the Kumo cloud, Tenkan-Kijun cross, and Chikou span to identify trend direction and support/resistance zones.

Identical Three Crows: A Bearish Candlestick Variant Explained The identical three crows candlestick pattern—three black candles with matching opening prices—signals especially strong selling momentum and is stricter than Three Black Crows.

In-Neck vs On-Neck Candlestick Patterns Compared Understand the difference between in-neck and on-neck candlestick patterns, two bearish continuation signals that differ in how the second candle overlaps the first.

Inside Bar Candlestick Pattern What an inside bar candlestick pattern means: a candle fully contained within the prior bar's range, signaling consolidation and potential breakout moves.

Inside Bar Pattern in Technical Analysis The inside bar pattern signals volatility contraction before a breakout. Learn how price consolidation precedes directional moves.

Internal Strength Index Breadth indicator measuring ratio of advancing stocks to declining stocks in a market or sector.

Inverse head and shoulders Inverse head and shoulders is a bullish reversal pattern consisting of three troughs—a lower right shoulder, a deeper head, and a lower right shoulder—with equal highs connecting them.

Inverted Hammer A bullish reversal candle with a long upper shadow, signaling potential upside after a downtrend.

Island Reversal A cluster of price bars isolated by gaps that signal an abrupt exhaustion and reversal of a prior trend.

Kagi chart A kagi chart displays price movement as vertical lines that change thickness and direction based on price reversals, a price-based chart that ignores time.

Kaufman Adaptive Moving Average vs EMA KAMA adapts its responsiveness based on market volatility and noise, while EMA uses a fixed smoothing constant, making each suited to different trending conditions.

Kicker Pattern A two-candle reversal pattern with a gap opening opposite to the prior trend—one of the strongest technical signals, often triggering sudden trend reversals.

Klinger Oscillator A long-term volume flow indicator that distinguishes accumulation from distribution periods by tracking price-qualified volume over time.

Know Sure Thing Oscillator A composite momentum indicator that weights four smoothed rate-of-change periods to create a single, layered momentum signal.

Ladder Bottom: A Five-Candle Bullish Reversal Pattern The ladder bottom candlestick pattern is a five-candle bullish reversal that forms in a downtrend with three declining closes followed by two rising candles, ending with an inverted hammer signalling upward reversal.

Line chart A line chart plots only closing prices as a single continuous line, the simplest form of price visualization and often the clearest for identifying long-term trends.

Linear Regression Channel A trend tool that fits a least-squares regression line through price and plots parallel deviation bands to mark reversals and extremes.

Linear Regression Slope as a Trend Filter How measuring the slope of a linear regression line detects trend momentum and filters trades against the prevailing market direction.

Long-Legged Doji A candlestick with exceptionally long upper and lower shadows and a small body, marking extreme intraday indecision and volatility.

Low Volume Consolidation: What Contracting Volume During Ranges Means Low volume consolidation signals a healthy pause in price action. Learn why shrinking trading activity within tight ranges precedes major moves and how to spot the setup.

Low-Volume Node A price zone with historically sparse trading volume that market price crosses rapidly with minimal resistance.

Low-Volume Pullback as a Bullish Signal A low-volume pullback during an uptrend signals weak selling pressure and is often bullish, suggesting institutional buyers are absorbing the retracement rather than panic liquidation.

MACD Histogram Shrinking: An Early Warning Before the Crossover A shrinking MACD histogram signals fading momentum and often precedes the signal-line crossover, giving traders an earlier entry point than waiting for the crossover itself.

MACD Histogram vs MACD Line MACD histogram vs MACD line: understand what the histogram measures independently and why traders act on histogram momentum shifts before signal line crossovers.

MACD Histogram: What It Measures and How to Use It MACD histogram explained as the distance between MACD line and signal line, revealing momentum divergence and early reversal signals.

MACD Indicator Moving average convergence-divergence oscillator that measures momentum via the gap between fast and slow exponential moving averages.

MACD Settings for Day Trading How to adjust MACD from the standard 12-26-9 parameters for faster signals on 5- and 15-minute intraday charts.

MACD Zero Line Crossover vs Signal Line Crossover Compare MACD zero line crossover vs signal line crossover: understand the speed-reliability tradeoff and which conditions favor each entry signal.

Market Breadth (Advances/Declines) Count of stocks rising versus falling on a given market day, measuring the breadth of market participation.

Market Breadth During a Bear Market Rally How breadth patterns differ between genuine recoveries and counter-trend rallies inside bear markets.

Market Breadth Overbought and Oversold Thresholds How to spot extreme breadth readings. A guide to the threshold levels used to identify when markets are overbought or oversold.

Market Cycle The four recurring phases—accumulation, mark-up, distribution, mark-down—that structure long-term price behavior and investor behavior.

Marubozu A marubozu is a candlestick with no upper or lower wick—or virtually none—with the open and high at the same level (or very close) and the close and low at the same level. It signals strong conviction and momentum in one direction.

Mat Hold Pattern: A Bullish Continuation Candlestick The mat hold candlestick pattern is a five-candle bullish continuation. Learn to distinguish it from Rising Three Methods and confirm the setup.

McClellan Oscillator Exponential moving average of breadth indicator showing market momentum via advance-decline divergence.

McClellan Oscillator Overbought and Oversold Levels McClellan Oscillator overbought oversold levels: typical threshold values of +100 to -100 used to identify extremes and potential market turning points in breadth-based analysis.

McClellan Oscillator vs Summation Index: Which to Use Understand the difference between the short-term McClellan Oscillator and the longer-running Summation Index for market breadth analysis and timing.

McClellan Summation Index The cumulative total of McClellan Oscillator values that identifies major shifts in market breadth momentum and trend sustainability.

McGinley Dynamic Indicator vs EMA The McGinley Dynamic is a speed-adjusted moving average that adapts to market volatility, whereas EMA uses a fixed smoothing constant—learn when each is more responsive.

Measured Move Down Pattern The measured move down chart pattern projects downside price targets by mirroring the first leg decline and tracking consolidation, a bearish technical setup.

Measured Move in Chart Patterns The measured move chart pattern projects a minimum price target after a breakout by using the pattern's height as the expected move distance.

Measured Move Pattern A three-leg price structure where the second advance or decline mirrors the first, providing a precise price target for traders.

Measured Move Target A projected price target based on the amplitude of a prior price swing, applied from a breakout point.

Momentum Indicator Divergence False Signals Momentum indicator divergence false signals: conditions that cause divergences to fail, and the filters traders use to reduce whipsaws and false reversals.

Momentum Indicators for Swing Trading RSI, Stochastic, and CCI are the primary momentum indicators adapted for swing trading; parameter choices vary by timeframe and volatility environment.

Momentum Oscillator Centerline Crossover How zero-line and 50-level crossings on momentum oscillators filter trend direction rather than time exact reversals or entries.

Momentum Oscillator Smoothing Methods: SMA vs EMA vs Signal Line Momentum oscillators can be smoothed with a simple moving average, exponential moving average, or dedicated signal line. Compare lag, reactivity, and use cases.

Money Flow Index A volume-weighted momentum indicator that measures the strength of buying and selling pressure, combining relative strength concepts with trading volume.

Money Flow Index: How It Is Calculated and Used The Money Flow Index calculation uses typical price and volume to create an oscillator measuring buying and selling pressure, flagging overbought and oversold zones.

Morning Doji Star vs Morning Star: Key Differences The morning doji star and morning star are both three-candle reversal patterns, but the doji variant includes a spinning-top middle candle with a gap. Learn why the doji is considered stronger and when to rely on each pattern.

Morning star A morning star is a three-candle reversal pattern consisting of a large bearish candle, a gap down with a small candle, and a large bullish candle. It signals a shift from bearish to bullish momentum.

Morning Star and Evening Star Candlestick Patterns Morning star and evening star are three-candle reversal patterns signaling shifts from downtrend to uptrend and vice versa.

Moving Average Simple and exponential moving averages that smooth price data and serve as dynamic trend references and support/resistance levels.

Moving Average as Dynamic Support How traders use rolling average prices as real-time, self-adjusting support and resistance levels that adapt to market momentum.