Category: Technical Analysis
Backtesting as a Public Service
A lot of traders have asked me why we decided to implement a backtesting engine in TrendSpider. That’s a great question – because backtesting is an interesting thing, to say the least. Let’s start with a definition: Backtesting is the process of applying a trading strategy or analytical method to historical data to see how […]
The Ultimate Guide to Technical Indicators
Most people that see technical indicators for the first time feel a bit overwhelmed by all of the lines and numbers. It’s a lot like showing an equation containing a sigma symbol (Σ) to a fifth-grader — it might make sense when it’s explained to them, but until then, it looks impossible to understand. Technical […]
What Is A Blue Raindrop? A New Way To Find Market Reversals
Of all of the features available on the TrendSpider platform, few are more intriguing than our Raindrop Charts. Raindrop Charts are a unique-to-the-platform candlestick style that allows our users to easily see the volume distribution across a candle. There are multiple different types of Raindrop candles that can occur, but certainly, the rarest is the […]
How to Spot and Trade Reversals With the Evening Star and Abandoned Baby
Most traders are familiar with doji candlestick patterns, which indicate that there’s a lot of indecision in the market. While indecision doesn’t always lead to a reversal, it does suggest that the previous trend is likely losing steam. This can make doji patterns helpful for predicting reversals when combined with other forms of technical analysis. […]
How to Spot and Trade Engulfings
Candlestick patterns are a great decision support tool for active traders. Bullish and bearish engulfings have an ideal mix of reliability and frequency that makes them a powerful addition to any trader’s repertoire. They can be very helpful for predicting reversals when used in conjunction with other forms of technical analysis. Let’s take a look […]
The Ultimate Guide to Candlestick Patterns
As technical analysis has become more and more prevalent, candlestick charts have become the default for most active traders. Unlike line or bar charts, candlestick charts provide five data points (open, high, low, close, and percentage change) to help traders instantly assess market conditions and sentiment. One can also look at combinations of candlesticks to […]
How to Spot Reversals with the Dragonfly Doji and Gravestone Doji
Candlestick patterns are a great decision support tool for active traders. While dragonfly and gravestone doji may not be 100% accurate on their own, they can be incredibly useful for confirming a bullish or bearish reversal that’s supported with other technical indicators or chart patterns. Let’s take a look at how to use both of […]
How to Spot and Trade Spinning Top Candlestick Patterns
Candlestick patterns are a great way to assess market sentiment at a glance. While they aren’t very reliable on their own, many traders use them to confirm other technical indicators or chart patterns and tilt the odds in their favor. This makes them a valuable addition to any trader’s repertoire.
Guest Post by Paul Bratby at My Trading Buddy: Elliott Wave Theory Rules and Observations
TrendSpider is happy to share a blog by Paul Bratby, founder and CEO of Trade The Fifth, which focuses on Elliot Waves that occur in the financial markets. To learn more about Elliot Waves and their technology, continue reading!
Technical Analysis and Self-Fulfilling Prophecies
Imagine that you come across a stock that’s forming an ascending triangle pattern. You know that a breakout is likely to occur given the series of higher lows, and sure enough, the stock breaks out the following session on high volume. There was no fundamental news to justify the breakout—the price movement seemed to occur […]
How to Trade Earnings Announcements With Technical Analysis
Predicting the reaction to an earnings announcement is notoriously difficult. Even if a company misses on revenue and income, the stock price could rise sharply higher if the market’s expectations were low, future guidance was better than expected, or the conference call contained some bullish language. The sharp reactions to earnings can also blow up […]
Level Up Your Technical Analysis with Multiple Time Frames
Imagine trying to drive across the United States using individual state maps. You might find the best route through each state, but without seeing how everything connects, you probably wouldn’t take the optimal route to your destination. Traders rely on trend lines, chart patterns, and technical indicators to make decisions, but individual timeframes don’t provide […]
