![]() MFI declines and Volume rises (Squat): The increased Volume signifies the increased number of participants entering the market. MFI rises and Volume declines (Fake): Price movement without the confirmation of Volume is a sign of a fake move. This usually occurs at the end of a trend. MFI declines and Volume declines (Fade): Both MFI and Volume fade, resulting in no interest to advance further. This is assigned a Green color indicating that traders should be having positions in the direction of the prevailing trend. MFI rises and Volume rises (Green): The market is accelerating as new traders enter the market. It is calculated by combining price and volume: MFI = (High-Low) / Volume.īy comparing the current candle's MFI and volume with the previous candle's MFI and volume, four possible scenarios may be formed: The area between the High and the Low price denotes the Range of the Day.Īn indicator developed by Dr Bill Williams to gauge the efficiency of a price movement. The lowest point on the Lower Shadow/Wick denotes the lowest price reached during the specific session and is known as the Low price. Similarly, the line below the Body is called the Lower Shadow or Wick. The highest point on the Upper Shadow/Wick denotes the highest price reached during the specific session and is known as the High price. The line extending above the Body is called the Upper Shadow or Wick. The area between the Open and Close price is known as the Body or Real Body. Otherwise, if the Close is lower, then the candlestick is considered bearish, and its color is black or filled. If Close is higher, then the candlestick is considered bullish and it’s hollow or white. ![]() The color of the rectangle area corresponds to the relation between the Open and Close price. It consists of a rectangle area defined by the Open and the Close price. In the 1980s, Steve Nison introduced the Japanese Candlesticks to the West through his book Japanese Candlesticks Charting Techniques which revolutionized chart analysis."Ī charting technique, originating in Japan and made known to the West in the 1980s by Steve Nison. The highest price reached during the session is known as the High price, whereas the lowest price reached is the Low price. The price range of the specific session is indicated by the vertical line that runs through the body. Similarly, a black body means that the session closed lower than the Open price. A white body simply means that the session closed higher than the Open price. Similarly, a black body is bearish meaning that the sellers are in control and the sentiment is negative. A white body is bullish meaning that the buyers are in control and the sentiment is positive. The crowd psychology is revealed at a glance by the color of the body. Its color, black or white, is strictly dependent on the relation between the Open and the Close price. The area between the Open and Close price is known as the body or real body of the candlestick. The candlesticks display the Open, High, Low, and Close price in a pictorial way. He believed that candlesticks reflect the market psychology and the investors’ emotions, which are essential in forecasting the next price move. "A price charting technique attributed to Honma Munehisa, a rice market trader in 17th century Japan. On the other hand, when the Aroon Down crosses below the Aroon Up, then a downtrend is expected. ![]() When the Aroon Up crosses above the Aroon Down then an uptrend is likely to follow. Anticipation of trending markets is signaled by the crossover of the two lines. When the two lines move parallel to each other, then a consolidation may follow.Ī breakout of the consolidation is expected when the two lines cross over or move to an extreme level like 0 and 100. Similarly, a reading between 0 and 30 for the Aroon Down, indicates a downtrend. ![]() The Aroon indicator is interpreted as follows: when Aroon Up is between 70 and 100 an uptrend is signaled. N - (periods since lowest low in "n+1 periods) * 100 /n. N - (periods since highest high in "n+1" periods) * 100 / n.Similarly, Aroon Down is calculated as: It consists of two lines: the Aroon Up and the Aroon Down. A technical analysis indicator used to determine a change in the direction of a financial instrument and measure the strength of the trend during a trending market. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |