The Japanese candlestick is a charting method which is a means of analysis into the markets and their underlying securities, currencies and other assets, which helps identify market fluctuations, trends, and patterns to predict future price movements.The Japanese candlestick charting method is a form of analysis on the price fluctuations on underlying instruments. Candlesticks is a centuries old technique and helps to target market fluctuations based on consumer’s fears and emotions where what is more important, than the why, in trading the underlying market.With Japanese candlesticks, the real potential of any of the given stock, interest rate, currency or the entire market becomes more prominent and supplies you with a more unobstructed view of the price fluctuations and developing trends.You will have more significant chance of knowing when to sell, and when to buy, and have a deeper understanding that the underlying value truly has no reflection on the actual price. This rings through in many markets with a prime example being the crypto markets.What is a Japanese Candlestick?The simple answer to what is a Japanese candlestick is is that it is another means of charting out fluctuations and repetitive patterns within the financial markets. In structure, it is similar to a bar chart which signifies OHLC (open, high, low, close) but has a “real body” that is colored depending on if it closed higher or lower from the opening and has lines on the top and bottom which are sometimes called wicks.The “real body” of the Japanese candlestick is made up of the bottom representing the opening price and the upper signifying the closing price. When the opening price was higher than the close, the real body might be colored black or green, and if the real body is hollow with no color, then the close was higher than the opening price. The longer the real body signifies the intensity of the buying and selling pressure, while the shorter body represents a consolidated state or a consistent price movement.The upper “wick” or sometimes referred to as a shadow of the Japanese candlestick signifies the high for that markets trading day. The lower “wick” or shadow signifies the low for that markets trading day. The easy to read fluctuations of real price action allows for traders to look at the Japanese candlestick chart and see the day’s highs, lows, along with the close and open prices and determine if they should buy or stick it out longer.History of the Japanese CandlestickThe history of the Japanese candlestick method of charting goes back to the seventeenth century during a high rice trading time of a prolific rice trader named Homma. The original designs and concepts used have been further developed over the years, even from the nineteen hundreds on-wards when Charles Dow created the U.S. version. Examples of Japanese CandlestickThere are many different names that have been used which identify the conventional Japanese Candlestick patterns in charting. Some examples of Japanese candlestick have been called Doji Pattern, Shooting Star Pattern, and Dark Cloud Covered Pattern. All of these different concepts utilize the same underlying methods of the Japanese candlestick with the charted open, close, high and low significantly spelled out but providing a bullish or bearish potential with each pattern.Japanese candlesticks have become known as one of the most unambiguous concepts which are quick and easy to understand in its basic form; however, understanding the numerous patterns can take years of study to ensure upon proper recognition. The clear highs, lows, opens and closes are very noticeable for swift and fierce analysis and development of a strategy to buy, sell or hold. Thankfully, there are charting providers who have built-in recognition algorithms which easily identify all signals. ... please login to read more

Alternative investment corresponds to the classes of asset that is beyond the realm of the common stocks, cash or bonds. A lot of investment options fall under this category which includes private equity, private debt, hedge funds, commodities, real estate, and crypto. Alternative investments or simply, alternatives as they are otherwise known, have captured the interests of various professionals over the past few years. Since the market has started to become more volatile, investors are now considering the assets that are minimally affected by the daily pricing of the market. Let us find out what is considered an alternative investment ... please login to read more

Currently, we are hearing many traders calling the current rally in Bitcoin a dead cat bounce scenario, stating that the bearish trend in the crypto market is being interrupted by a small price recoveries, but these price increases are only temporary. This is possibly due to the result of the investor or traders that are buying or closing their short positions due to the assumption that the security has already reached the bottom. This has been reported on recently where bitcoin shorts have reached a yearly low after sudden drop of 20, but traders such as Joel Kovschoff of Athena, an ... please login to read more

Resistance happens to every stock and trading pair at some point. Most of the time, significant resistance occurs at the upper levels of the market range of the underlying instrument; however, resistance will be present all through the span of the pricing with historical resistance points being formed over time.The amount of time that an underlying instrument, be it a share of a company or a currency, is in the field of resistance will be totally dependent upon a number of factors, with the most critical factors being the momentum of the underlying instrument, the volumes being traded at tha ... please login to read more

Now, the truth is that there are quite a lot of different indicators which are going to be taken into account when it comes to evaluating the strength of different trends. This particular one is actually non-directional which means that it is only going to quantify the strength of the trend, regardless of the direction – whether it is up or whether it is down. The indicator is usually plotted in a chart window, and it comes with two other lines which are known as Directional Movement Indicators or DMI in order to clarify the direction.ADX Indicator – A C ... please login to read more

The technical indicator of Parabolic SAR was introduced to analyze an existing trend in the market. The indicator will be constructed based on the charts price movements. As an indicator Parabolic SAR is quite similar to the Moving Average; the only difference is that the Stop and Reverse are moving with the higher acceleration and the position can change based on the price.What is a Parabolic SAR Indicator?As it was mentioned above, the parabolic SAR indicator is a technical indicator that is utilized by various traders to help them predict the momentum of the asset as well as the specific time when the momentum designates a higher-than-normal possibility to change in direction. The Parabolic SAR system was designed by Welles Wilder who is a famous technician. Welles Wilders is also known as the developer of RSI or Relative Strength Index. It is depicted into a chain of dots place below or above the price of the asset.Understanding the Parabolic SAR StrategyThe most important aspect of the Parabolic SAR would be the position of these ‘dots.’ This is utilized by the traders to produce signals contingent upon the position of the dots. A dot positioned below is called a bullish signal, and the momentum will stay in the increasing direction, and a dot will be placed above when there is a downward trend. Utilizing the Parabolic SAR strategy only by itself will lead to the premature exiting or entering the position. Most of the traders will decide to put a stop-loss order on the SAR since the signal will lead to a reversal which will prompt the trader to act on the opposite course.The Parabolic SAR FormulaThe Parabolic SAR formula that you can use will depend upon the position of the dot. When it comes to the long position, SAR will be calculated by adding the Parabolic SAR Value to the product of the acceleration factor to the difference of the maximal and value of SAR.Simply put SAR (i) = SAR (i-1) +Acceleration*[high (i-1)-SAR (i-1)]For the short position, the formula can be defined as the value of the SAR added to the product of the acceleration to the difference of minimal price to the value of the SAR.Short position Formula:SAR (i) = SAR (i-1) +Acceleration * [low (i-1)-SAR (i-1)]The value of the indicator will tend to increase in case of the price by the existing bar is higher compared to the past bullish or opposite trend. Acceleration factor will also increase which will result in the Parabolic SAR coming together with the price. In a simpler term, the pace of the shrink and the growth of price will equate to the indicator approaching the price at a faster rate. ... please login to read more

Ever wonder when you are electronically trading, and you call your broker and tell them that you want to sell one thousand shares of your GE stock and within minutes of their quote it is done and over with? If so, then you are dealing with the how and who of a market maker. With that in mind the market maker, the trader firm or broker, is the creator of markets where you buy and sell underlying instruments in bulk fashion. For this example, we will focus on securities. Whenever they have securities to sell, they should have buyers in their cross hairs when opening a new market to sell which help assist in the liquidity and robustness of a double-sided market. What is a Market Maker?The most basic answer to what is a market maker is that they are either a firm or a broker who takes on all the risk of a specified number of stock shares for an agreed upon price to trade them. During electronic trading, the market maker displays a given quote for both buying and selling of the stock shares, usually in bulk consumption, and is always a guaranteed transaction. A market maker is an essential facilitator in the secondary market in increasing stock liquidity and long-term growth potential of the markets. Competition is very fierce for a market maker, where the real deal lies in the customer orders continuously flowing for the buying and selling of securities. Once a consumer makes an order to buy, the market maker either sells from their inventory or gathers a compensating order. There can be any one or more than fifty market makers for any given security depending on the volume of the stocks daily average of trading. How do Market Makers Operate? If you are wondering how do market makers operate and make a profit then the most straightforward answer is a market makers spread. A market makers spread is the difference between the buying price of the securities and the selling price. With that in mind, because the market maker can sell or buy securities at any given time, the “spread” is the actual profit made off of each and every trade. The market makers must define and capture a buyer for every sale and a seller for every buyer. The market is created when over some time the market maker quotes bids and offers, and they have to maintain a buy and ask quote within each market maker spread. To make a profit the market maker has to buy or sell one thousand of the quoted securities then they can exit, the market. After the exit, the market maker can then create a new market by quoting a new buy and ask price for the previous securities. The first question should not be how do market makers operate and make money, but that their first obligation is to create liquidity for their clients, then the profits can be had. By law, a market maker must give their clients the most competitive price for both the buy and ask quotes for the securities which provide the most secure double-sided market. ... please login to read more

Bollinger bands were created in the 1980s by John Bollinger. John Bollinger was a long time market technician and analyst. Bollinger bands find the moving average by using a trading band above and below it. Bollinger Bands Indicator A Bollinger bands indicator is found by using standard deviation, which is the mathematical formula for finding volatility. This is very useful, as Bollinger Bands adjust themselves to the market conditions as the market progresses and as such, allow market participants who are monitoring the underlying instruments that ability to predicate overbought and oversold positions. What are the Bollinger Bands? If you have never heard of Bollinger Bands, you m ... please login to read more

William r is an oscillator that compares the current closing price of any commodity with the high-low price range in a given period of time. Chartists can adjust it to the number of days they want depending on their business goals. William r indicator works best when used in short term business analysis goals like 14 to 20 days because it is able to give precise details of the overbought and oversold commodities.

There is a whole misconception about the use of technical indicators in trading. Most traders are using too many indicators without even researching and understanding the process and how terms are calculated. They do not even bother to calculate the veracity and accuracy of their indicators. According to the latest study, most indicators have lower than 30% accuracy rate, but traders are continuing to use them. Let us analyze one of the most renowned indicators in trading- the Stochastic Oscillator. The Stochastic Oscillator Indicator Stochastic Oscillator can be used to gauge the momentum and the speed of a particular price on a given period of time. The Stochastic Oscillator Indicator will perform at its ... please login to read more