Igor

The index is taken to be bullish if it is positive and rising and if negative and falling, it is taken to be bearish.

Heiken-ashi, the Japanese term for “average bar”, is a charting technique that is used to better visualize price trends by eliminating irregularities. This is achieved by recalculating the candlesticks using a modified formula to create an average for the open, close, high and low of the day.

An asset that is heavy will lose value as traders dump it or refuse to buy it; two factors that cause excess supply. So traders can either sell heavy assets to profit from the downward move, or they can wait for the drop in price before considering long positions.

The pattern is considered to be bearish reversal pattern where the trader can trade the downside break of the neckline. In the patterns generated, the first and third peaks correspond to the shoulders while the second peak corresponds to the head.

Developed by P.N. Haurlan, this technical indicator is used to detect resistance, price breakout and mometum of price movements using its three components. Haurlan index is an EMA of the net advances minus the net declines.

It signals a trend reversal which could either be bullish when there is a downtrend, or bearish when there is an uptrend.

The presence of a hanging man is indicative of the end of an uptrend and a bearish reversal. The hanging man requires confirmation before being used as a bearish reversal trade signal.

The presence of a hammer is indicative of the end of a downtrend and a bullish reversal. The hammer requires confirmation before being used as a bullish reversal trade signal.

The GMMA was created by Daryl Guppy. The intersection of the two groups of moving averages is used to determine trend changes, with a bullish trend developing when the short term MAs cross above the long term ones, and a bearish trend occurring when the short term moving averages cross below the long term moving averages.

The rounding top is best traced on the daily or weekly charts to reflect the long term nature of the pattern, and is characterized by a previous uptrend, a high forming the peak of the inverted U shape, then a period of price decline and then a breakout from the price support which is accompanied by an increase in selling volume.

The golden cross occurs not only on moving averages placed on the chart for technical analysis, but also on indicators that utilize moving averages such as the MACD. It is akin to a resistance break and is the opposite of the death cross.

The Gartley patterns can be bullish (M shaped) or bearish (W shaped). The shapes are formed by trend lines that connect the points XABCD, with the reversal taking off from point D.

A gap may be a sign of the beginning of a strong trend, or it may be the beginning of the end of the trend if the gap occurs after a long period of trending prices.

A Gann Fan is a diagrammatic representation of the collection of Gann Angles. It looks like a handheld fan and shows the various Gann angles superimposed on a chart.

An ideal situation occurs when the price and time exist in a balance, corresponding to a Gann Angle of 45 degrees. The nine different Gann angles provide areas where price will find a support of hit a resistance.

Fuzzy logic is incorporated into advance trading models in an attempt to react to changes in the market. By being able analyze several assets at the same time, an algorithm that uses fuzzy logic can identify the best trading opportunities out of so many at the same time.

Fractals work best when combined with other indicators of technical analysis. A bullish fractal occurs when the lowest bar is located within the chart pattern with two bars with higher lows located around it. A bearish fractal occurs when the lowest bar is located in the middle of the pattern with two bars making lower highs located around it.

It is used by analysts to find out the direction that a stock’s price will take and how trends will change.

The appearance of a flag is an indication that the previous trend is going to continue, so traders should warm up to enter in the direction of the previous trend at the end of the consolidation period.

This is a subjective order screening technique that investors can set on their own to avoid buying or selling at minor changes in price, or to only enter positions when a certain level of percentage change in price has been achieved.

This principle is used in retracement trading. In a strong trend, there comes a time that investors will take profits and this usually occurs with the asset falling in value by at least 50%.

They are used to forecast reversals on the basis of elapsed time.

The Fibonacci retracement tool is used to deduce the possible points where a retracing asset will resume the previous trend.

They are used to predict changes in trends since prices tend to be near the lines created by the Fibonacci analysis.

Fibonacci fans are used to determne areas of support and resistance in a diagonal market.