Category: Technical Analysis

Oscillator of a Moving Average (OsMA) – Main Features

The OsMA (Moving Average of Oscillator) is a technical analysis indicator that measures the difference between an oscillator (usually the MACD) and its signal line (usually a moving average of the MACD). The traditional OsMA is usually derived from the MACD (Moving Average Convergence Divergence) indicator, which is itself a widely used momentum indicator, but other oscillators can also be … Read more

Klinger oscillator in trading: how to take advantage of this indicator?

by rcanessa

The Klinger oscillator in trading is one of many technical indicators used to find buying and selling opportunities in financial markets. The Klinger oscillator is unique in that it takes into account both price and volume data in its calculation. The theory behind the indicator is that strong price movements should be accompanied by strong volume and vice versa. When … Read more

Bull Power and Bear Power Indicators

by rcanessa

The purpose of this article is to provide traders with a detailed explanation of the use of Bears Power and Bulls Power indicators, their calculation and their signals with a step-by-step tutorial. We will also explain how to use these indicators for trading in the financial markets. Bulls Power – Indicator that measures the strength of buyers The financial markets … Read more

Money Flow Index Indicator | Overbought and oversold zones

by rcanessa

The Money Flow Index Indicator, or MFI indicator, is a technical indicator used to identify overbought and oversold zones. To understand the importance of this indicator, it is necessary to ask the following question: what moves the markets? The shortest answer maybe supply and demand. If the demand for an instrument is high and there is little supply, the price … Read more

Moving Average Envelopes Indicator

by rcanessa

Envelopes, a trend following indicator Channels moving averages or Envelopes (Moving Average Envelopes) are channels whose lines, upper and lower are calculated as a deviation percentage of a simple moving average or exponential moving average. Each line is at the same percentage above and below the central moving average. This creates two parallel strips that follow the price action. This … Read more

RSI Signals Indicator for Metatrader 4

by rcanessa

In this article, we present a custom dashboard indicator for Metatrader 4, called RSI Signals, which displays multiple signals from the RSI indicator on different instruments and time frames. It is a free custom indicator where the trader can select the currency pairs and time frames they want to view. Also, it is able to show when the RSI is … Read more

Matching Low Candlestick Pattern – Definition and Guide

by rcanessa

The candlestick pattern Matching Low is a formation of two bearish candles presented in markets with a downward trend. It has moderate reliability and indicates that the price is likely to change from a bearish to a bullish trend. This pattern can be identified as follows: The current market trend is bearish. During the first period, a big black candle is formed. In the … Read more

Fractal Adaptive Moving Average (FRAMA)

by rcanessa

The Fractal Adaptive Moving Average (FRAMA) is an adaptive and intelligent moving average developed by John Ehlers. It takes into account and gives higher priority precisely to price changes and closely follows the price when it shows significant movements, while in range markets it remains flat without presenting major changes. It uses the fractal dimension of market prices to dynamically adjust its smoothing period.

FRAMA takes advantage of the fact that markets are fractals and dynamically adjusts the look-back period based on this fractal geometry. The actual calculation of this moving average is very elaborate and complicated. FRAMA is often used in combination with other signals and analysis techniques.

Bullish Harami Cross Candlestick Pattern

by rcanessa

Definition and identification

The candlestick formation Bullish Harami Cross is a trend reversal pattern that occurs in bearish markets, and indicates that there is a probability that a change from bearish to bullish trend will occurs. This pattern has a moderate reliability and can be identified as follows:

First a long candle is produced, which can be white or black.
A Doji is then formed in the next period, which is within the range of the previous candlestick.
The previous trend must be necessarily bearish.

Trend Continuation Patterns in Technical Analysis

by rcanessa

In this article we are going to focus on the topic of trend continuation price patterns. We will cover many topics related to technical analysis such as basic concepts, description of trend continuation formations, and tips on how to trade once the trend continuation pattern is found. In this way, we hope to answer the main questions on the subject, especially those related to the identification of these price formations and their use as technical tools to trade in Forex and other markets.

The three pillars of Technical Analysis

Technical analysis is based on three basic principles, which are known as the three pillars of technical analysis, and they are the following:

Price reflects everything.
Prices move in trends
The history repeats itself.

It is essential to understand each of them to really understand what technical analysis is and how it works. Let’s review each principle:

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