BlogHide Resteemsgoldpattern (25)in forceindex • 3 years agoIdentifying CorrectionsThe Force Index can be used in conjunction with a trend following indicator to identify short-term corrections within that trend. A pullback from overbought levels represents a short-term correction…goldpattern (25)in trend • 3 years agoTrend ConfirmationOBV can be used to confirm a price trend, upside breakout or downside break. The chart for Best Buy (BBY) shows three confirming signals as well as confirmation of the price trend. OBV and BBY moved…goldpattern (25)in index • 3 years agoRelative Strength IndexRSI is a versatile momentum oscillator that has stood the test of time. Despite changes in volatility and the markets over the years, RSI remains as relevant now as it was in Wilder's days. While…goldpattern (25)in stochastic • 3 years agoStochasticWhile momentum oscillators are best suited for trading ranges, they can also be used with securities that trend, provided the trend takes on a zigzag format. Pullbacks are part of uptrends that…goldpattern (25)in trend • 3 years agoTrend StrengthDirectional movement can also be important when analyzing the slope. A negative and rising slope shows improvement within a downtrend. A positive and falling slope shows deterioration within an…goldpattern (25)in divergence • 3 years agoDivergences and FailuresFailure swings and divergences can be combined to create more robust signals. A bullish failure swing occurs when MFI becomes oversold below 20, surges above 20, holds above 20 on a pullback and…goldpattern (25)in forex • 3 years agoOverbought/OversoldMeasuring overbought and oversold conditions can be tricky with Price Channels. Securities can become overbought and remain overbought in a strong uptrend. Similarly, securities can become oversold…goldpattern (25)in forex • 3 years agoConsolidation PeriodThe Aroon indicators signal a consolidation when both are below 50 and/or both are moving lower with parallel lines. It makes sense that consistent readings below 50 are indicative of flat trading.…goldpattern (25)in signal • 3 years agoElliott Wave CountsThe ZigZag feature can be used to filter out small moves and make Elliott Wave counts more straightforward. The chart below shows the S&P 500 ETF with a 6% ZigZag to filter moves less than 6%. After…goldpattern (25)in gold • 3 years agoPivot PointsPivot Points offer chartists a methodology to determine price direction and then set support and resistance levels. Price direction is determined by looking at the current period's price action…