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Chart Patterns
A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals. There are three main types of chart patterns which are used by technical analysts: traditional chart patternHarmonic Patterns* candlestick pattern Traditional Chart Pattern Included in this type are the most common patterns which have been introduced to chartists for more than a hundred years. Below is a list of the most commonly used traditional chart patterns: Reversal Patterns: # Double Top Reversal # Double Bottom Reversal # Triple Top Reversal # Triple Bottom Reversal # Head and Shoulders # Key Reversal Bar Continuation Patterns: # Triangle # Flag and Pennant # Channel # Cup with Handle Harmonic Pattern Harmoni ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pattern
A pattern is a regularity in the world, in human-made design, or in abstract ideas. As such, the elements of a pattern repeat in a predictable manner. A geometric pattern is a kind of pattern formed of geometric shapes and typically repeated like a wallpaper design. Any of the senses may directly observe patterns. Conversely, abstract patterns in science, mathematics, or language may be observable only by analysis. Direct observation in practice means seeing visual patterns, which are widespread in nature and in art. Visual patterns in nature are often chaotic, rarely exactly repeating, and often involve fractals. Natural patterns include spirals, meanders, waves, foams, tilings, cracks, and those created by symmetries of rotation and reflection. Patterns have an underlying mathematical structure; indeed, mathematics can be seen as the search for regularities, and the output of any function is a mathematical pattern. Similarly in the sciences, theories explain and predict reg ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chart
A chart (sometimes known as a graph) is a graphical representation for data visualization, in which "the data is represented by symbols, such as bars in a bar chart, lines in a line chart, or slices in a pie chart". A chart can represent tabular numeric data, functions or some kinds of quality structure and provides different info. The term "chart" as a graphical representation of data has multiple meanings: * A data chart is a type of diagram or graph, that organizes and represents a set of numerical or qualitative data. * Maps that are adorned with extra information (map surround) for a specific purpose are often known as charts, such as a nautical chart or aeronautical chart, typically spread over several map sheets. * Other domain-specific constructs are sometimes called charts, such as the chord chart in music notation or a record chart for album popularity. Charts are often used to ease understanding of large quantities of data and the relationships between parts of t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commodity Market
A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management. A financial derivative is a financial instrument whose value is derived from a commodity termed an underlier. Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number of derivatives are traded via clearing houses some with central counterparty clearing, which provide clearing and settlement services on a futures exchange, as well as off-exchange in the OTC market. Derivatives such as futures contracts, Swaps (1970s-), Exchange-traded C ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Technical Analysis
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results. History The principles of technical analysis are derived from hundreds of years of financial market data. Some aspects of technical analysis began to appear in Amsterdam-based merchant Joseph de la Vega's accounts of the Dutch financial markets in the 17th century. In Asia, technical analysis is said to be a method developed by Homma Munehisa duri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Data
In the pursuit of knowledge, data (; ) is a collection of discrete values that convey information, describing quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpreted. A datum is an individual value in a collection of data. Data is usually organized into structures such as tables that provide additional context and meaning, and which may themselves be used as data in larger structures. Data may be used as variables in a computational process. Data may represent abstract ideas or concrete measurements. Data is commonly used in scientific research, economics, and in virtually every other form of human organizational activity. Examples of data sets include price indices (such as consumer price index), unemployment rates, literacy rates, and census data. In this context, data represents the raw facts and figures which can be used in such a manner in order to capture the useful information out of it. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Candlestick Pattern
In financial technical analysis, a candlestick pattern is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement. The recognition of the pattern is subjective and programs that are used for charting have to rely on predefined rules to match the pattern. There are 42 recognized patterns that can be split into simple and complex patterns. History Some of the earliest technical trading analysis was used to track prices of rice in the 18th century. Much of the credit for candlestick charting goes to Munehisa Homma (1724–1803), a rice merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka during the Tokugawa Shogunate The Tokugawa shogunate (, Japanese 徳川幕府 ''Tokugawa bakufu''), also known as the , was the military government of Japan during the Edo period from 1603 to 1868. Nussbaum, Louis-Frédéric. (2005)"''Tokugawa-jidai''"in ''Japan Encyclopedia .... According to Steve Nison, how ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Candlestick Chart
A candlestick chart (also called Japanese candlestick chart or K-line) is a style of financial chart used to describe price movements of a security, derivative, or currency. It is similar to a bar chart in that each candlestick represents all four important pieces of information for that day: open and close in the thick body; high and low in the “candle wick”. Being densely packed with information, it tends to represent trading patterns over short periods of time, often a few days or a few trading sessions. Candlestick charts are most often used in technical analysis of equity and currency price patterns. They are used by traders to determine possible price movement based on past patterns, and who use the opening price, closing price, high and low of that time period. They are visually similar to box plots, though box plots show different information. History Candlestick charts are thought to have been developed in the 18th century by Munehisa Homma, a Japanese rice tra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Candlestick Chart
A candlestick chart (also called Japanese candlestick chart or K-line) is a style of financial chart used to describe price movements of a security, derivative, or currency. It is similar to a bar chart in that each candlestick represents all four important pieces of information for that day: open and close in the thick body; high and low in the “candle wick”. Being densely packed with information, it tends to represent trading patterns over short periods of time, often a few days or a few trading sessions. Candlestick charts are most often used in technical analysis of equity and currency price patterns. They are used by traders to determine possible price movement based on past patterns, and who use the opening price, closing price, high and low of that time period. They are visually similar to box plots, though box plots show different information. History Candlestick charts are thought to have been developed in the 18th century by Munehisa Homma, a Japanese rice tra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elliot Wave
The Elliott Wave Principle, or Elliott wave theory, is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology and price levels, such as highs and lows, by looking for patterns in prices. Ralph Nelson Elliott (1871–1948), an American accountant, developed a model for the underlying social principles of financial markets by studying their price movements, and developed a set of analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call ''Elliott waves'', or simply ''waves''. Elliott published his theory of market behavior in the book ''The Wave Principle'' in 1938, summarized it in a series of articles in ''Financial World'' magazine in 1939, and covered it most comprehensively in his final major work, ''Nature's Laws: The Secret of the Universe'' in 1946. Elliott stated that "because man is subject to rhythmical ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Trends
A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time. A market trend can only be determined in hindsight, since at any time prices in the future are not known. Market terminology The terms "bull market" and "bear market" describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. The terms come from London's Exchange Alley in the early 18th century, where traders who engaged in naked short selling were called "bear-skin jobbers" because they sold a bear's skin (the s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Action Trading
The price action is a method of analysis of the basic movements of the price, to generate signals of entry and exit in trades and that stands out for its reliability and for not requiring the use of indicators. It is a form of technical analysis, since it ignores the fundamental factors of a security and looks primarily at the security's price history. What differentiates it from most forms of technical analysis is that its main focus is the relation of a security's current price to its past prices as opposed to values derived from that price history. This history includes swing highs and swing lows, trend lines, and support and resistance levels. At its most simplistic, it attempts to describe the human thought processes invoked by experienced, non-disciplinary traders as they observe and trade their markets.Livermore 1940, chapter 1Mackay 1869Mandelbrot 2008, chapter 1Schwager 1984, chapter 23 Price action is simply how prices change - the action of price. It is readily observed ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trend Following
Trend following or trend trading is a trading strategy according to which one should buy an asset when its price trend goes up, and sell when its trend goes down, expecting price movements to continue. There are a number of different techniques, calculations and time-frames that may be used to determine the general direction of the market to generate a trade signal, including the current market price calculation, moving averages and channel breakouts. Traders who employ this strategy do not aim to forecast or predict specific price levels; they simply jump on the trend and ride it. Due to the different techniques and time frames employed by trend followers to identify trends, trend followers as a group are not always strongly correlated to one another. Trend following is used by commodity trading advisors (CTAs) as the predominant strategy of technical traders. Research done by Galen Burghardt has shown that between 2000-2009 there was a very high correlation (.97) between tren ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
