Podcast
Questions and Answers
What do Bollinger Bands consist of?
What do Bollinger Bands consist of?
- Simple moving average and one standard deviation line
- Weighted moving average and four standard deviation lines
- Exponential moving average and three standard deviation lines
- Moving average and two standard deviation lines (correct)
What does the Directional Movement Index (DMI) help determine?
What does the Directional Movement Index (DMI) help determine?
- Entry and exit points in trading
- Historical price movements
- Market volatility
- Strength and direction of a trend (correct)
Which candlestick pattern is characterized by a small body with long upper and lower shadows?
Which candlestick pattern is characterized by a small body with long upper and lower shadows?
- Three Black Crows
- Dark Cloud Cover
- Highwave (correct)
- Three White Soldiers
What is the main purpose of Bollinger Bands in technical analysis?
What is the main purpose of Bollinger Bands in technical analysis?
Which indicator is included in the Directional Movement Index (DMI)?
Which indicator is included in the Directional Movement Index (DMI)?
What is the special feature of Heikin-Ashi candles that helps traders overcome the biggest barrier?
What is the special feature of Heikin-Ashi candles that helps traders overcome the biggest barrier?
Which type of candle is considered bullish based on its wick characteristics?
Which type of candle is considered bullish based on its wick characteristics?
What signals a strong buy/sell signal in Heikin-Ashi charts?
What signals a strong buy/sell signal in Heikin-Ashi charts?
In Heikin-Ashi charts, what is the significance of having wicks on both sides of a candle?
In Heikin-Ashi charts, what is the significance of having wicks on both sides of a candle?
Who developed Heikin-Ashi charts?
Who developed Heikin-Ashi charts?
Flashcards
Bollinger Bands Components
Bollinger Bands Components
Bollinger Bands are made up of a moving average and two standard deviation lines.
DMI Purpose
DMI Purpose
The Directional Movement Index (DMI) shows the strength and direction of a trend.
Highwave Candle
Highwave Candle
A candlestick with a small body and long upper and lower wicks.
Bollinger Bands Use
Bollinger Bands Use
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DMI Components
DMI Components
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Heikin-Ashi Neutral Candle
Heikin-Ashi Neutral Candle
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Bullish Heikin-Ashi
Bullish Heikin-Ashi
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Strong Buy/Sell Signal (Heikin-Ashi)
Strong Buy/Sell Signal (Heikin-Ashi)
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Indecisive Heikin-Ashi Candle
Indecisive Heikin-Ashi Candle
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Heikin-Ashi Developer
Heikin-Ashi Developer
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Study Notes
Candlestick Patterns
- Three White Soldiers: a bullish pattern
- Three Black Crows: a bearish pattern
- Dark Cloud Cover: a bearish pattern
- Doji: a neutral pattern
- High Wave: a bullish pattern
- Hammers, Shooting star, Gravestone Doji, Long Legged Doji: various bullish and bearish patterns
Indicators
- Bollinger Bands: a technical analysis tool consisting of a moving average and two standard deviation lines above and below it, indicating price volatility and potential reversal points
- Upper Band (Upper BB): the top line of the Bollinger Bands
- Lower Band (Lower BB): the bottom line of the Bollinger Bands
- Median Line: the middle line of the Bollinger Bands
- Directional Movement Index (DMI): a technical indicator used to determine the strength and direction of a trend
- Positive Directional Indicator (+DI): a component of the DMI
- Negative Directional Indicator (-DI): a component of the DMI
- Average Directional Index (ADX): a component of the DMI
Heikin-Ashi Charts
- Developed by Munehisa Homma in the 1700s
- Decisive Candles: Bullish when there is NO LOWER WICK (Leg), Bearish when there is NO UPPER WICK (Leg)
- Indecisive Candles: when there are wicks on both sides
- Overcomes the Psychological barrier due to its special formation method
- Buy Signal: a strong buy/sell signal is when HA changes color without giving any neutral candle at some support/resistance
- Sell Signal: a strong buy/sell signal is when HA changes color without giving any neutral candle at some support/resistance
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Description
Test your knowledge on various trading strategies and technical analysis concepts such as stop loss, pyramiding, support & resistance, momentum, Heikin-Ashi charts, and more. Learn about bullish and bearish signals, decisive and indecisive candles, and the history behind Heikin-Ashi charts.
