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How to read Candlestick Charts

Moving Average Convergence/Divergence Index

Charts display information, and different chart types provide different levels of information. The vast majority plot price against time, but can vary in complexity. Below is a line chart which simply records the consecutive closing prices of an instrument for a specific time period: A chart like this will show the observer how price has moved over More...

by Robert | Published 5 months ago
By Accendo Markets On Tuesday, October 8th, 2013
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Double Bottom and Double Top

Double bottom and double top are a chart reversal pattern. In other words, the pattern displayed will signal a reversal of the trend. Below we have explained how to identify these chart reversal patterns. Double More...

By Accendo Markets On Friday, September 20th, 2013
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Ascending and Descending Triangle Patterns

Triangles are often used in technical analysis to identify a breakout. A triangle can be ascending, descending and symmetric. However, for now we will be talking about ascending and descending triangle patterns. More...

By Accendo Markets On Friday, August 23rd, 2013
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The Trend Is Your Friend (Trend lines, Support and Resistances)

A market is a series of waves. A wave is constructed of peaks and troughs and these are what define the direction of the market which is also known as the trend. A trend of a market can be applied to any financial More...

By Accendo Markets On Wednesday, July 31st, 2013
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What is Rate of Change?

Rate of change is a momentum oscillator. It can be measured in percentage or in decimal form.  Just like RSI it can be used to identify overbought and oversold levels. The saying ‘the trend is your friend’ More...

By Accendo Markets On Thursday, July 25th, 2013
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Introduction to RSI (Relative Strength Index)

The relative strength index is a momentum oscillator and is the one most used oscillators by traders. The RSI indicator was invented by J. Welles Wilder Jr. The indicator is used to identify overbought levels, oversold More...

By Accendo Markets On Thursday, July 18th, 2013
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An introduction to Fibonacci Retracements

Fibonacci retracements are derived from the Fibonacci sequence (The Rabbit Problem), Fibonacci was an 11th century Italian mathematician and now we use his sequence in financial markets. It is otherwise known as More...

By Marcus Holland On Saturday, April 27th, 2013
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Issues Related to Back Testing

Back testing a trading strategy is the process of evaluating the profitability of a methodology based on returns calculated from historical data. Many portfolio managers use back testing to prove that a strategy More...

By Marcus Holland On Monday, April 8th, 2013
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Does Systematic Trading Help or Hinder the Financial Markets?

Systematic trading, also known as algorithmic trading is an automated style of trading using computer generated instructions.  This type of trading style uses electronic platforms to initiate positions within the More...

Fig. 9.26(f)
By Marcus Holland On Wednesday, March 13th, 2013
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More about volatility skews, crunches and smiles

Regular readers will by now be familiar with the fact that one of the most popular options valuation models out there is the Black-Scholes model. Black-Scholes uses a number of inputs to calculate a fair market More...