Igor

First described by Emanuel Derman and Iraj Kani, the indicator has the advantage of being able to recognize volatilities in advance by comparing different derivative valuations.

This is a moving average that is more responsive to price trends because it gives more weight to recent price closings. It is often used to evaluate momentum and to specify area of likely support and resistance.

The linear price scale uses bars that are evenly distributed and does not consider the size of the price movement relative to the price level but rather on the price movement alone.

The indicator was developed by Stephen Klinger and helps traders to determine the long term trend using the money flow and volume data for an asset. By measuring accumulation/distribution, volume and the range of prices between the high and low for any given day, it can also predict short term fluctuations in addition to the long term trends.

The basis of the TK cross is that the Kijun-sen lags behind the Tenkan-sen, which is why the cross of the Tenkan sen above or below the Kijun-sen is used to generate the signals that constitute the TK cross trade strategy.

The commonest application of the Kijun line is in the TK cross signal. A cross of the Tenkan line above the Kijun line is a bullish signal, while a cross of the Tenkan line below the Kijun line is a bearish signal.

The kicker pattern is used to determine changes in the trend direction of an asset’s price as a reversal signal. The gap between the new trend candle and the kicker is a sign that there has been a sudden and sharp change in market sentiment, leading to the reversal.

It computes the difference of the current price from the SMA and presents it as the percentage of the moving average.

Developed by the Japanese in the 19th century, the Kagu chart is used to generate trade entry signals based on the thickness or thinness of the vertical lines. Thick lines represent a break of price above previous highs, showing increased demand. Thin lines represent a break of price below previous lows, showing increased supply.

This term was derived from the body figure of popular singer/actress, Jennifer Lopez, who is noted for her rounded curves.

This pattern is often noticed when a trending move is in its final stages.

An inverse saucer looks like a rounded top. It signifies a capping of prices and is a bearish reversal signal.

The inverse head and shoulders pattern is used to signal the reversal of a current downtrend. It consists of three lows which look like an inverted head and shoulders pattern and the buy signal is when the price breaks above the neckline.The price then moves back up to the same resistance point (or an area close to it), before forming a third valley whose low is at the same level as the first, then moves back up and eventually breaks above the resistance.

Developed by Dave Bostian, this indicator is used to monitor the trading activity of the institutional investors in the financial markets. It is especially important in forex since the order flows of the institutional investors is what moves currency prices.

The inside day candle formation is used to trade reversals when they occur at the top or bottom of the trend. In an inside day candle formation, the second candle (Day 2) has a higher low and lower high than the Day 1 candle.

The impulse wave always moves in the direction of the pre-existing trend.This implies that if a trend is upwards in direction, the impulse wave will also show a peak in the price and when the trend is downward, the wave will show a corresponding dip the price.

The Ichimoku indicator conmprises of several components: the Tenkan Line, Kijun Line, the Kumo, and the Senko Span A and B lines. Each of these components can be used to derive all manner of trade signals such as breakouts, crossovers, bounces, pullbacks, etc.

The Ichimoku Cloud is also known as the Kumo and it is used in several ways to produce trading signals. It can act as a support or resistance, and a break of the Kumo signifies a breakout signal. If the price fails to break the Kumo, it can be used for support and resistance trading.

A hybrid indicator combines other indicators with chart patterns or other technical factor to exert their action. An example is the Moving Average Convergence Divergence (MACD) which works by using elements of another indicator (the moving average).

Horizontal channels enclose areas where the price of the asset is range-bound. Range traders can then sell at the upper trend line and buy at the lower trend line.

It is identified when a candlestick has a lower high and a higher low than the previous day. The hook reversal resembles the harami with the exception that the distance between the open and close prices of the two candles is smaller than what is seen in a harami. The outcomes are the same: occurring at the end of a trend, the hook is a reversal pattern.

It is used to show dramatic shifts. It is important to study the asset to know what caused the shift, and to determine if this is a transient move or if there is a more fundamental cause that could make the move more sustained. A trend line that connects the area of price movement resembles a hockey stick, with the shaft formed by the period of flat performance (horizontal price movement) and the blade of the hockey stick formed by the diagonal price movement.

First introduced by Karl Pearson, they are used to plot data densities and for density estimation. A histogram consists of tabulated frequencies which are depicted visually as adjacent rectangles that are constructed over discrete intervals.

The acceptable limit that must be breached is 2.2 of total assets traded. Therefore, a Hindenburg omen can be said to occur when the number of assets forming highs and lows on the NYSE is greater than 2.2% of total assets issued. The number of stocks that form 52 week highs or lows has to be abnormally large for a Hindenburg omen to occur.

The Hikkake candlestick pattern is a complex pattern which is essentially an inside day formation whose movement has failed. The Hikkake is a break of the low of the Day 1 candle (bearish Hikkake) or a break of the high of the Day 1 candle (bullish Hikkake).It is also known as a one day false breakout where a security’s price crosses a resistance level and then re-crosses the level back to where it was before the move and depending on the direction of the breakout,