School

  Parabolic SAR (Stop & Reverse) The Parabolic SAR is a trend-following technical indicator that identifies the direction of a security’s momentum and serves as a trailing stop. It forms strings of dots shaped like a parabola. It’s called “SAR” (Stop and Reverse) because when reached by the price, it stops the current string and reverses to the other direction …

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Trendlines & Channels As mentioned earlier, a trendline is a straight line drawn over the price to connect the swing highs in a downtrend, or under the price to connect the swing lows in an uptrend, to represent the main direction of price and to identify areas of support and resistance. Pivot points are essential in drawing trendlines. Pivot points …

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  A trend is the general direction of price movement. The trend can be ascending (bullish or uptrend), descending (bearish or downtrend) or flat (ranging). The names of the trends come from the way the animals attack their victims, the bull with its head bowed moves from low to high, and the bear on its feet moving from high to …

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Relative Strength Index (RSI)   The RSI is a momentum oscillator indicator , and it measures the speed and change of the price movement by comparing a market’s gains to its losses and plotting that on a 0 to 100 scale. Basically, if the RSI is less than 30, it means the market is oversold and the price will eventually …

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  what is the trending market ! A trending market is simply a market that is consistently making Higher Lows (HLs) and Higher Highs (HHs), or a market that is doing the inverse – moving down and making Lower Highs (LHs) and Lower Lows (LLs). See below how the Dow Jones was in a nice bullish uptrend. As you can see, the …

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  The Moving Average Convergence-Divergence, or simply the MACD, is a trend-following momentum indicator. It describes the difference between two Exponential Moving Averages (EMAs). Basically, convergence occurs when the two EMAs are moving closer together as the difference between them gets smaller, while divergence occurs when they are moving apart because the difference between the EMAs is getting larger. The MACD …

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