Chart analysis

In this category, graphical figures are considered, and an assessment of their applicability for predicting future price changes is given.
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Elena Berseneva 30 june 2022 41
Elena Berseneva 30 june 2022 Technical analysis 41
Trading on Correction: Rules and Results
Technical analysis
When studying stock price charts, you can often see the presence of price gaps today compared to the previous trading day. They can be seen both after the weekend and on weekdays.
Elena Berseneva 04 march 2022 278 4
Elena Berseneva 04 march 2022 Technical analysis 278 4
«A hanging Man»: A Reversal Pattern. Is It the Case in Practice?
Technical analysis
The article discusses the figures of graphical analysis "Hanged man" and the reverse to it – "Inverted hammer". What are these patterns? How often do they occur? How effective is trading on them? In this study you will find answers to these and other questions.
Elena Berseneva 04 march 2022 264 4
Elena Berseneva 04 march 2022 Technical analysis 264 4
Double Top: A Reversal Pattern. Checking the History
Technical analysis
In the proposed article, we will talk about paired patterns of graphical analysis “Double Top” and “Double Bottom”.
Elena Berseneva 24 february 2022 263 4
Elena Berseneva 24 february 2022 Technical analysis 263 4
Does the Gap Tend to Close?
Technical analysis
In this article, we will examine what a gap is. When does it appear? How is it formed? What is the gap's closing? You can find answers to these and many other questions in our article.
Elena Berseneva 29 december 2021 328 4
Elena Berseneva 29 december 2021 Technical analysis 328 4
Engulfing Pattern Signals a Trend Change: Yes or No?
Technical analysis
Let us draw your attention to the study on the Engulfing pattern graphical analysis. Steve Nison, the author of the book entitled "Japan candlesticks", refers the pattern to trend reversal models.
Elena Berseneva 29 december 2021 320 4
Elena Berseneva 29 december 2021 Technical analysis 320 4
The Harami Pattern. Does it Engender a New Trend?
Technical analysis
In the proposed study, we will research the Harami graphical pattern. In his book "Japanese Candlestick Charting Techniques", Steve Nison characterizes this pattern as follows: "The Harami model is a candle with a small body that is within a relatively big body of the preceding candle. 'Harami' is an ancient Japanese word which means 'pregnant'. A big candle is a 'mother', and a small one is a 'child' or 'fetus.' " This pattern is believed to be reversal. We will check if it is true by using a large volume of historical data.
Elena Berseneva 28 december 2021 234 4
Elena Berseneva 28 december 2021 Technical analysis 234 4
Ominous Clouds. Will the Trend Change?
Technical analysis
This article considers the graphical analysis pair patterns named the "Dark Cloud Cover" and the "Piercing Line". The Dark Cloud Cover and Piercing Line are attributed to reversal patterns.
Elena Berseneva 28 december 2021 247 4
Elena Berseneva 28 december 2021 Technical analysis 247 4
Pattern 1-2-3. Is It as Good as It is Believed to Be?
Technical analysis
The article will focus on the formation well-known among traders – the 1-2-3 pattern. Its description as “reversal points” can be found in the book “Long Term Secrets of Short-Term Trading” by Larry Williams. It is believed that the formation of this pattern predicts a market reversal. Trading on the basis of 1-2-3 pattern can be carried out on any timeframe and on the charts of any financial instrument. The structure of the model is not complicated, that’s why it’s popular among traders. Let's check the effectiveness of the signal’s work on this pattern using historical data.
Elena Berseneva 22 december 2021 289 4
Elena Berseneva 22 december 2021 Technical analysis 289 4
Studying the "Head-and-Shoulders" Pattern
Technical analysis
The Head and Shoulders pattern has been known for a long time. John J. Murphy was the first who gave a detailed description of the pattern and visualized it in the book titled "Technical Analysis of Futures Markets: Theory and Practice". The Head and Shoulders pattern implies a transition from an uptrend to a downtrend. There is also an Inverted Head and Shoulders pattern that appears in a downtrend and signifies a potential reversal point to an uptrend. The pattern is quite common, but, in fact, rarely seen on charts in its original form.
Elena Berseneva 22 december 2021 261 4
Elena Berseneva 22 december 2021 Technical analysis 261 4
Is the Flag Pattern a Continuation Pattern? Let’s Check on History
Technical analysis
In the following research, we will consider such a popular chart pattern as the Flag.
Elena Berseneva 15 december 2021 361 4
Elena Berseneva 15 december 2021 Technical analysis 361 4
The Hammer Pattern is a Reversal Model. Is It Really So?
Technical analysis
The article discusses the figure of chart analysis "Hammer". What is this pattern? How often does this figure appear? In which markets and timeframes does the pattern have a higher quality? How effective is trading on this figure? We will answer these and other questions in this study.
Elena Berseneva 10 december 2021 308 4
Elena Berseneva 10 december 2021 Technical analysis 308 4
Price Divergence and RSI. Checking the Robustness in Signal Detection
Technical analysis
There are many ways to determine a reversal in quotes flow of financial instruments. Among them, the most effective method is divergence. Divergence occurs when the price moves in the direction opposite to the technical indicator in the stock market. If a financial instrument shows new peaks or troughs on the chart and the indicator does not draw similar peaks, so it certainly implies a discrepancy between the price and the indicator readings. The resulting discrepancy is usually considered to be a reversal signal. In our study, we take one of the most popular oscillators, the RSI indicator. The RSI can track the quotes fluctuations and set its own minimum and maximum scales.
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