Investment Technology
As always, there are exceptions to all rules. The Gapping Plays are those exceptions. As previously discussed, the gap at the top of a trend is the exhaustion gap. The same is said for the gap at the bottom of…
Category Technical Analysis
Profits With Candlesticks Analysis
How Do They Produce Profits With Candlesticks? Gaps (Ku) are called windows (Mado) in Japanese Candlestick analysis. A gap or window is one of the most misunderstood technical messages. Most investment experts advise not to buy after a gap. This…
Primary Functions
Again, although Bollinger Bands can help generate buy and sell signals, they are not designed to determine the future direction of a security. The bands were designed to augment other analysis techniques and indicators. By themselves, Bollinger Bands serve two…
Pillars of Technical Analysis
This blog focuses on the 3 pillars of Technical Analysis and lays the foundation for the so called Study of charts. I.Price discounts everything The statement “price discount everything” forms the cornerstone of of technical analysis. The chartists believe that…
Dow theory’s six basic tenets
Charles Dow (left) & Edward Jones (right) established Dow Jones & Company in 1882. They created the two indices i.e., the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) to provide a good indication of…