Category: Technical Analysis Guide

What Are Fibonacci Clusters? A Fibonacci cluster is where a collection of Fibonacci retracements or extension levels, based on various price swings, convene near one price area. The theory of a cluster is that if multiple Fibonacci extension or retracement…

What Are Fibonacci Extensions? A Trend-Based Fibonacci Extension is a tool that traders can use to establish profit targets or estimate how far a price may travel after a pullback is finished. Extension levels are also possible areas where the…

Fibonacci Retracement Levels Definition Fibonacci retracement levels—stemming from the Fibonacci sequence—are horizontal lines that indicate where support and resistance are likely to occur. Each level is associated with a percentage. The percentage is how much of a prior move the…

What are Fibonacci Numbers and Lines? Fibonacci numbers are used to create technical indicators using a mathematical sequence developed by the Italian mathematician, commonly referred to as "Fibonacci," in the 13th century. The sequence of numbers, starting with zero and…

Divergence Definition Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be…

Volatility Indicators Overview Volatility-based indicators are valuable technical analysis tools that look at changes in market prices over a specified period of time. The faster prices change, the higher the volatility. The slower prices change, the lower the volatility. It…

Volume Indicators Overview Volume-based indicators give information about the amount of traded contracts or lots. Its one of the few types of indicators that base their value not solely on price. Volume obviously depends on the selected period. The amount…

Momentum Indicators Overview Momentrum indicators are technical analysis tools used to determine the strength or weakness of a asset’s price. Momentum measures the rate of the rise or fall of asset prices. Our Best Chosen Momentum Indicators The LMD Indicator…

Trend Indicators Overview Trend indicators tell you which direction the market is moving in, if there is a trend at all. Trend indicators we’ll discuss include moving averages, Parabolic SAR, SuperTrend, and Ichimoku Kinkō Hyō. Our Best Chosen Trend Indicator…

What Are The Pivot Points? A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high…