Bollinger Bands are a volatility indicator made up of three lines: These bands expand and contract depending on market volatility: Because of this, Bollinger Bands help traders understand market conditions at a glance. How Bollinger Bands Work The concept behind
The Moving Average Convergence Divergence (MACD) is a trend-following and momentum indicator. It helps traders understand the relationship between two moving averages of price. MACD is made up of three main components: Together, these elements reveal the strength, direction, momentum,
The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder. It measures the speed and strength of price movements over a specific period, usually 14 candles. RSI values range from 0 to 100 and help traders
A Moving Average is a technical indicator that calculates the average price of a currency pair over a specific period. Instead of focusing on the latest price spike or drop, it smooths out fluctuations and gives you a clearer picture
The Head and Shoulders is a reversal pattern that signals a shift from an uptrend to a downtrend. It consists of three peaks: Once the price breaks below the neckline, it confirms a bearish trend reversal. How the Head and
A Double Top is a bearish reversal pattern that forms after an extended upward trend. It consists of two peaks (tops) that reach a similar price level, separated by a temporary pullback. Here’s what it represents: The double top shows
Trend lines are straight lines drawn on a price chart that connect sequential highs or lows. They serve as visual representations of the prevailing market trend—whether bullish, bearish, or sideways. By identifying these lines, traders can gain insights into the
Support and resistance are horizontal lines or zones on a price chart that indicate where the price has historically had difficulty moving beyond. These levels are not fixed but are zones where supply and demand dynamics shift, causing the price
Candlestick patterns are formations created by the arrangement of individual candlesticks on a price chart. Each candlestick displays four key data points: Open, High, Low, and Close. The shape and position of these candlesticks reveal the battle between buyers and
