What is an MACD? The acronym for MACD is Moving Average Convergence Divergence and chart analysts like to call it ‘Mac-Dee’. The MACD is a type of technical indicator invented by Gerald Appeal in 1979. It is used to pin point moving averages that are indicating a new trend either bullish or bearish. Because the […]

What is a ‘Bollinger Band’? A Bollinger Band is a type of indicator used to measure the volatility of a market. It was developed by a technical analysis, John Bollinger. The Bollinger Band is made up of a center line being either a SMA or an EMA and two bands or price channels, each running […]

Simple Vs Exponential Moving Averages After having being lectured on the subject regarding the Simple and the Exponential Moving Averages, you would want to know which is better so as to implement it on your next forex trade. Although the differences between the SMAs and the EMAs are very clear, neither one is better than […]

What is an Exponential Moving Average (EMA)? An exponential moving average or EMA in short, is also identical to the simple moving average (SMA), except that it adds more weight to the recent data. It can also be called the exponential weighted moving average. The EMA response faster to the current price changes than the […]

What is a Moving Average and a Simple Moving Average? A moving average or MA in short, is a type of indicator widely used by technical analysts to help smooth out price data. It is created by calculating the average closing price of an asset or currency pair over a certain number of periods. Since […]

What are Fibonacci Numbers? Fibonacci numbers or lines are a continuous series of numbers where the next following number is the total of the two earlier numbers which, go on infinitely. The Fibonacci sequence of numbers are 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 and so on. These numbers were […]

Types of Triple Japanese Candlestick Patterns There are six types of triple Japanese candlestick patterns and they are the Morning Star, the Evening Star, the Three White Soldiers,the Three Black Crows, the Three Inside Up and the Three Inside Down. The Morning Star and the Evening Star Both the morning and the evening stars are […]

Types of Double Japanese Candlestick Patterns The four types of double Japanese candlestick patterns are the Bullish Engulfing Pattern, The Bearish Engulfing Pattern, the Tweezer Tops and the Tweezer Bottoms. The Bullish Engulfing Pattern The bullish engulfing pattern is a double candlestick pattern that indicates a possibility of a strong uptrend. It is formed right […]

Types of Single Japanese Candlestick Patterns There are four basic types of single Japanese candlestick patterns and they are the Hammer, the Hanging Man, the Inverted Hammer and the Shooting Star. Most technical analysts use them to pin point potential market reversals. The Hammer and the Hanging Man Both the hammer and the hanging man […]

Types of Japanese Candlestick Patterns There are several types of Japanese candlestick patterns and below are some of the basic patterns. Spinning Tops If the real body of a Japanese candlestick is very small with a long top and bottom vertical lines or shadows attached to it that candlestick is called spinning tops. Its color […]