The Equidistant Channel is formed by two parallel lines of support and resistance. Equidistant means “equal distance.” The parallel lines of support and resistance are at equal distance with each other. The price remains in Equidistant Channel till it breaks support or resistance level. The term “equidistant” means “of equal ..Read More

In his book, J. Welles Wilder, New Concepts in Technical Trading Systems describes strong market reversals. He used the RSI (relative strength index) to measure these swings. He then gave these sharp price movement names of failure swings. There are plenty of indicators like the MACD, CCI, RSI, and the ..Read More

The Abandoned Baby is a reversal candlestick pattern that shows a shift in momentum from the bullish to bearish and vice versa. The pattern consists of three candles. The abandoned baby pattern is a multiple candlestick reversal patterns. This candlestick pattern is similar to the morning and evening star candlestick ..Read More

The trendline is a line that is drawn on the chart between two different prices. The prices are connected at the top, bottom, and/or middle to form a line in either an up direction, down direction or flat direction. To draw a trend line, you simply look at a chart ..Read More

The Diamond pattern is a reversal pattern that appears at major tops and bottoms. It rarely surfaces on the chart and has a V-shaped neckline. A bearish diamond formation or diamond top is a technical analysis pattern that can be used to detect a reversal following an uptrend; however bullish ..Read More