Education

The Moving Average Convergence Divergence (MACD) is a trend-capturing momentum indicator used by professional traders. Standard MACD Indicator The MACD shows the relationship between two moving averages of prices. The MACD was created by Gerald Appel in the late 1970s. The MACD indicator is the difference of the 12-day Exponential Moving Average (EMA) and the […]

The Relative Strength Index (RSI) is among the most popular technical indicators for identifying overbought or oversold stocks. Standard RSI Indicator The standard RSI system uses a 14 days period to calculate the indicator. Overbought (value>70) refers to a stock that has increased rapidly in a short period of time and may reverse lower. Conversely,

In this lesson we want to explore using only Trend Lines as a system to see if it can be a profitable system. The basics of trend lines are explained in Lesson 6. Trend Lines System The system is very simple: Buy or Sell when the appropriate trend line gets broken with a closing price.

Among the first people in Japan to use past prices to predict future price movements was Munehisa Homma, making a huge fortune trading in the rice market during the 1700s. However, according to Steve Nison, the candlestick chart pattern technique did not become popular until the 1850s when more rice traders started using it. In

Frontrunner has many uses and in this lesson we will discuss another two of them that was only briefly mentioned in the previous lessons. Frontrunner is a proprietary technical signal of Algomodel and is only available in Algomodel Signals Pro. Frontrunner Bottom Prediction The cyclic indicator Frontrunner usually turns at bottom levels between a value

Any System to use in the stock market should preferably comply with the KISS principle: “Keep It Simple Stupid”.If one makes it too complicated by using many indicators, you will get many conflicting signals and then you do not know whether you are coming or going. Technical analysis helps guide traders to what is most

As Trend Lines is all about staying with a trend, I must stress again that ‘The Trend is your Friend’. In Algomodel Signals Pro we have 3 indicators to help you stay with a trend: Trend Factor: To be used for selection of shares that have a good trend history. (Lesson 4) Trend Candles: Shows

As they say in the classics: ‘The Trend is your Friend’ and I would like to add: ‘and NEVER invest against the Trend!’ I start with this quote as Algomodel Signals Pro is all about trends. The concept of candlestick charting was developed by Munehisa Homma, a Japanese rice trader. During his routine trading, Homma

The Trend Factor forms an important integral part of Algomodel Signals Pro to do share selection. The trend factor combines short, medium and long term performance with higher importance towards the shorter term period (3 months). The idea is to get a good selection of shares that outperformed the market in the past and then

Most candlestick signals are trend reversals. There are however a group of candlestick patterns which are continuation indicators. The continuation pattern reviewed in this education post is GAPS. The Japanese commonly refer to a gap as a window. Whereas the Western expression is “filling the gap”, the Japanese would say “closing the window”. Definitions A