Technical Analysis

A volume-based indicator that measures the cumulative flow of money into and out of an asset to confirm trend direction.

Average Directional Index — an indicator that measures trend strength on a scale of 0-100, where values above 25 indicate a strong trend regardless of direction.

A trend-identification indicator that measures the time elapsed since the most recent high and low to determine trend strength and direction.

A bullish chart pattern formed by a horizontal resistance line and a rising support trendline, indicating accumulation before a breakout.

A technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for a given period.

A stop-loss method that uses a multiple of Average True Range to set dynamic exit levels that adapt to current market volatility.

A two-candle reversal pattern where a large red candle completely engulfs the previous green candle, signaling potential downside.

A technical analysis tool consisting of a moving average with upper and lower bands set at standard deviations, used to measure volatility and identify overbought/oversold conditions.

The percentage width between the upper and lower Bollinger Bands, measuring volatility contraction and expansion to identify breakout potential.

A pattern where Bollinger Bands contract to their narrowest width, signaling extremely low volatility that often precedes a major breakout move.

A price action event where the market breaks a prior swing high or low, confirming a change in the prevailing trend direction.

A decisive move below a support level or zone, often with increased volume, suggesting sellers have taken control and the prior floor has failed.

A price movement through an identified level of support or resistance, typically accompanied by increased volume, signaling a potential trend continuation.

A two-candle reversal pattern where a large green candle completely engulfs the previous red candle, signaling potential upside.

A chart element that displays the open, high, low, and close price for a given time period, with the body showing the open-close range and wicks showing the full price range.

An oscillator that measures buying and selling pressure by combining price and volume data over a specified period.

A Smart Money Concepts term for the first break of market structure opposite to the prevailing trend, signaling a potential trend reversal.

Two parallel trendlines containing price action, creating a defined range within which price oscillates between support and resistance.

A period of sideways price action where an asset trades within a defined range, typically following a strong move and preceding the next directional breakout.

A running sum of volume delta, the difference between aggressive buy volume and aggressive sell volume, used to see which side has been in control.

A bullish continuation pattern resembling a teacup shape followed by a small downward drift, typically preceding a breakout.

A bearish technical signal that occurs when the 50-day moving average crosses below the 200-day moving average, suggesting potential for prolonged downside.

The difference between buying and selling volume at each price level, revealing the net aggression of buyers versus sellers in real-time.

A price area with concentrated buying interest where previous demand overwhelmed supply, likely to act as support on retest.

A bearish chart pattern formed by a horizontal support line and a descending resistance trendline, indicating distribution before a breakdown.

A condition where price and a momentum indicator move in opposite directions, signaling weakening trend strength and potential reversal.

A condition where price moves in one direction while a technical indicator moves in the opposite direction, signaling weakening momentum and potential trend reversal.

A candlestick pattern where the open and close prices are virtually equal, creating a cross-like shape that signals market indecision and potential reversal.

A volatility indicator that plots the highest high and lowest low over a specified period, creating a channel that identifies breakouts and trend direction.

A bullish reversal pattern where price tests the same support level twice, forming a W shape, before breaking out to the upside.

A bearish reversal pattern where price fails to break above the same resistance level twice, forming an M shape, before declining.

A technical analysis framework proposing that market prices move in predictable 5-wave impulse and 3-wave corrective patterns driven by crowd psychology.

Exponential Moving Average — a weighted moving average that gives more importance to recent prices, reacting faster to new data than a simple moving average.

A two-candlestick reversal pattern where the second candle completely engulfs the body of the first, signaling a shift in momentum from buyers to sellers or vice versa.

A price imbalance on a chart where a candle's range doesn't overlap with the candle two bars prior, creating an unfilled zone that price tends to revisit.

A price movement that temporarily breaches a support or resistance level but quickly reverses, trapping traders who entered on the breakout.

Horizontal levels projected beyond the prior price range using Fibonacci ratios to estimate potential profit targets for trending moves.

Horizontal lines drawn at key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) between a swing high and low to identify potential support and resistance levels.

A short-term continuation pattern where price consolidates in a small channel against the prior trend before resuming the original directional move.

A recurring price pattern that appears across all timeframes, suggesting that market behavior is self-similar regardless of the time horizon being analyzed.

The price action that occurs when a market returns to trade at prices where a gap previously existed, completing the unfilled zone.

A bullish technical signal where the 50-day moving average crosses above the 200-day moving average, suggesting potential for sustained upside.

A bullish reversal candlestick pattern with a small body near the high and a long lower wick, indicating rejection of lower prices.

A bearish reversal pattern consisting of three peaks — the middle (head) highest — with a neckline connecting the two valleys between them.

A modified candlestick charting technique that averages price data to smooth out noise and more clearly display trend direction and momentum.

A continuation signal where price makes a higher low but an oscillator makes a lower low (bullish) or price makes a lower high but oscillator makes a higher high (bearish).

A comprehensive indicator system that displays support, resistance, momentum, and trend direction in a single view using five calculated lines and a shaded cloud.

A comprehensive trend indicator combining five lines and a shaded cloud to simultaneously identify trend direction, momentum, support, and resistance.

A percentile measure comparing current implied volatility to its historical range, indicating whether options are relatively cheap or expensive.

A volatility-based envelope indicator that plots bands above and below an EMA using the Average True Range to define expected price ranges.

The shaded area between Senkou Span A and Senkou Span B in the Ichimoku system, providing dynamic support/resistance and trend direction.

A technical tool that confirms trends after they have already begun, providing reliable but delayed signals based on historical price data.

A technical tool that generates signals before price actually changes direction, providing early but sometimes premature trade entries.

A trend-following momentum indicator that shows the relationship between two exponential moving averages, used to identify trend direction, strength, and potential reversals.

The rate of acceleration of an asset's price or volume, measuring the strength behind a price move rather than the price level itself.

A volume-weighted RSI that incorporates both price and volume data to identify overbought/oversold conditions with volume confirmation.

A three-candle bullish reversal pattern consisting of a bearish candle, a small-bodied candle, and a bullish candle, signaling a bottom.

A technical indicator that smooths price data by calculating the average price over a specified number of periods, used to identify trend direction and dynamic support/resistance.

On-Balance Volume — a cumulative indicator that adds volume on up days and subtracts it on down days to measure buying and selling pressure.

A cumulative volume indicator that adds volume on up days and subtracts volume on down days, confirming trends through volume flow direction.

A price zone where institutional orders were executed, identified by the last opposite candle before a strong impulsive move, acting as future support or resistance.

A trend-following indicator that places dots above or below price to indicate potential reversal points and provide trailing stop levels.

A small symmetrical triangle that forms after a strong move, representing a brief consolidation before the prior trend resumes.

Calculated price levels derived from the previous period's high, low, and close that serve as potential support and resistance for the current period.

The price level with the highest traded volume in a Volume Profile, acting as a strong magnet for price and equilibrium reference point.

A trading methodology that makes decisions based purely on raw price movement, candlestick patterns, and chart structure without relying on indicators.

A consolidation pattern where price bounces between parallel horizontal support and resistance, eventually breaking out to resume the prior trend.

A price-only chart type that filters out time and minor price movements, creating uniform bricks that only appear when price moves by a specified amount.

A price level where selling pressure historically exceeds buying pressure, causing price to reverse downward. The ceiling that price struggles to break above.

A change in the overall direction of a price trend — from uptrend to downtrend or vice versa — typically confirmed by pattern completion and volume.

A momentum oscillator that measures the speed and magnitude of price changes on a scale from 0 to 100, indicating overbought conditions above 70 and oversold below 30.

A condition where the RSI indicator moves in the opposite direction of price, signaling weakening momentum and a potential trend reversal.

A bearish reversal candlestick pattern with a small body near the low and a long upper wick, signaling rejection of higher prices.

Simple Moving Average — the arithmetic mean of closing prices over a specified number of periods, smoothing price data to identify trends.

A statistical measure of how spread out price data is from its average, used in trading to quantify volatility and set probability-based targets and stops.

A momentum indicator that compares an asset's closing price to its price range over a defined period, identifying overbought and oversold conditions.

A price area with concentrated selling interest where previous supply overwhelmed demand, likely to act as resistance on retest.

A price level where buying pressure historically exceeds selling pressure, causing price to bounce upward. The floor that price struggles to break below.

A price area, rather than a single line, where buyers have repeatedly stepped in and demand is expected to show up again.

A neutral chart pattern with converging trendlines of equal slope, representing indecision that resolves with a breakout in either direction.

A bullish reversal pattern of three consecutive large-bodied green candles, each closing progressively higher, signaling strong buying momentum.

The overall direction in which price is moving — uptrend (higher highs and higher lows), downtrend (lower highs and lower lows), or sideways (no clear direction).

A straight line drawn across swing highs or swing lows on a chart to define the direction and slope of a trend, serving as dynamic support or resistance.

A bullish reversal pattern where price tests the same support level three times, building a strong base before a breakout to the upside.

The price range containing 70% of the volume in a Volume Profile, defining the zone where most market participants agreed on value.

An indicator measuring the difference between a fast and slow volume moving average to identify whether volume trends are bullish or bearish.

An intraday benchmark that calculates the average price an asset has traded at throughout the session, weighted by volume.

A trading benchmark that calculates the average price weighted by volume, showing the true average price at which an asset traded during a session.

A chart pattern where price converges between two angled trendlines, with rising wedges being bearish and falling wedges being bullish.

A momentum oscillator that measures the current closing price relative to the high-low range over a period, similar to an inverted Stochastic.

A century-old market analysis framework that identifies accumulation and distribution phases through the study of price, volume, and market structure.

A framework for understanding market cycles through the lens of institutional supply and demand, identifying accumulation and distribution phases through price and volume analysis.