Technical analysis from a trader's perspective

Rare three-candle reversal pattern: doji isolated by gaps on both sides. Highest-reliability star pattern variant.

Elliott corrective 3-wave structure: A (impulse against trend), B (retrace against A), C (impulse against trend, often Fibonacci-related to A). The standard corrective form.

Trend-strength indicator (0-100). >25 = strong trend; <20 = ranging/weak. Doesn't show direction, only strength. Combine with +DI/-DI for directional context.

VWAP calculated from a specific event (earnings, IPO, swing low) rather than session start. Identifies institutional cost basis from a notable moment.

Average True Range - a measure of recent price volatility.

5-point harmonic with stricter ratios than Gartley. AB = 0.382-0.50 of XA; CD reaches 0.886 of XA. Tighter reversal at D.

Volatility envelope: 20-period moving average ± 2 standard deviations. Bands expand in volatile markets, contract in quiet ones. Classic mean-reversion framework.

Reverse triangle: diverging trendlines making higher highs and lower lows. Signals volatility expansion and trend exhaustion.

5-point harmonic where D point EXTENDS beyond X. AB = 0.786 of XA; CD = 1.27-1.618 of XA. Reversal at D after a deeper extension.

Momentum oscillator measuring price deviation from average. Default 20-period. >100 = strong upward momentum; <-100 = strong downward.

5-point harmonic with extreme D extension. CD = 1.618 of XA. Reversal at D after the deepest extension of any harmonic pattern.

Bullish continuation pattern: rounded 'cup' bottom followed by a small downward 'handle' consolidation. O'Neil-style breakout setup.

5-point harmonic with unique BC = 1.13-1.414 EXTENSION beyond B (not retracement). CD = 0.786 of XC. Less common, higher reliability when correctly identified.

Two-candle bearish reversal: large green candle, then a red candle opening above the prior high but closing ≥50% into the green body. Bearish but weaker than engulfing.

Rare reversal pattern shaped like a diamond — broadening formation followed by a contracting formation. Signals trend exhaustion.

Candlestick with virtually identical open and close — body looks like a horizontal line. Signals indecision and potential reversal.

Highest high and lowest low over N periods (default 20). Breakout above upper = bullish; below lower = bearish. Foundation of the Turtle Traders system.

Two peaks (top) or two lows (bottom) at roughly the same level, separated by an intervening swing. The 'M' or 'W' chart shape every retail trader learns first.

Theory by Ralph Elliott (1930s): markets move in 5-wave IMPULSE structures and 3-wave CORRECTIVE structures, recursively across all timeframes. The dominant wave-based framework.

Two-candle reversal: a small candle followed by a much larger opposite-color candle that 'engulfs' the prior. Bullish or bearish based on direction.

Projection levels beyond 100% of a price swing — used to project target zones for impulse waves. Common levels: 127.2%, 161.8%, 261.8%.

Reference levels derived from Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) applied to price swings. Acts as support/resistance zones.

Brief consolidation patterns after a sharp directional move (the 'flagpole'). Flags are parallel channels; pennants are small triangles. High-conviction continuation signals.

Empty zones in the chart where price jumped past intermediate levels. Three types: breakaway (start of trend), runaway (mid-trend), exhaustion (end of trend).

5-point harmonic pattern (XABCD) with specific Fibonacci ratios. AB retraces 0.618 of XA; BC retraces 0.382-0.886 of AB; CD = 1.272-1.618 of BC. Reversal at D.

Single candle with small body and long lower wick (2x+ the body). Hammer at bottoms = bullish reversal; hanging man at tops = bearish reversal.

Two-candle pattern: a large candle followed by a small candle whose entire range fits inside the prior body. Inside bar at the candle-body level.

Reversal pattern: three peaks with a higher middle (head) between two lower peaks (shoulders). Confirmed on close below the neckline.

Japanese cloud-based technical system with 5 components: Tenkan, Kijun, Senkou A, Senkou B, Chikou. The 'one-look equilibrium chart' — multi-timeframe trend in one view.

Two wave types in Elliott. Impulse: 5 sub-waves, trends in direction of larger wave. Corrective: 3 sub-waves (ABC), against larger trend.

Candle whose entire high-low range fits inside the prior candle's range. Consolidation pattern — breakout direction determines continuation or reversal.

Bullish reversal candle: long upper wick, small body near the low, little-to-no lower wick. Same shape as shooting star but in a downtrend context.

Group of price bars 'stranded' by gaps on both sides — one gap entering, one gap exiting in the opposite direction. Rare but high-reliability reversal.

Volatility envelope: EMA ± multiplier × ATR. Similar to Bollinger Bands but ATR-based (smoother). Often used inside Bollinger for squeeze detection.

Moving Average Convergence Divergence - a trend/momentum indicator.

Candle with little to no wicks on either end — pure body. Strong continuation signal: one side dominated the entire session.

Three-candle reversal: a strong directional candle, a small-body indecision candle (often doji), then a strong opposite-color candle. Higher reliability than single-candle patterns.

Average price over a defined period; smooths noise to show trend.

Cumulative volume indicator: adds volume on up-days, subtracts on down-days. Rising OBV = accumulation; falling = distribution.

Candle whose high is above and low is below the prior candle's range. Larger-than-prior session — strong directional signal in the breakout direction.

Two-candle bullish reversal: large red candle, then a green candle opening below the prior low but closing ≥50% into the red body. Mirror of dark cloud cover.

Price-action term for any candle with a long wick (typically ≥2/3 of total range) on one side and small body near the opposite end. Same family as hammer / shooting star.

Daily-calculated support/resistance levels based on prior day's high, low, close. Standard intraday reference levels for futures and FX traders.

Parallel trendlines connecting swing highs and swing lows in an uptrend or downtrend. Price oscillates within the channel.

Horizontal consolidation between parallel support and resistance. Tradeable as range (buy support, sell resistance) until breakout.

Long, gradual U-shape bottoming pattern. Slower than a V-bottom but more reliable as a major-low signal.

Relative Strength Index - momentum oscillator on a 0-100 scale.

5-point harmonic with extreme BC extension and CD = 0.886-1.13 of XC. Newer harmonic (2011). High reliability per Carney.

Bearish reversal candle: long upper wick, small body near the low, little-to-no lower wick. Appears at trend tops.

Candle with a small body and roughly equal wicks above and below. Mild indecision — weaker than doji but similar interpretation.

Momentum indicator comparing closing price to high-low range over N periods. Scaled 0-100. Overbought >80, oversold <20.

Trend-following indicator combining ATR with mid-point levels. Single line on chart: above = uptrend, below = downtrend. Mechanical trend signal.

Price levels where buying or selling has historically clustered.

Three consecutive long red candles, each closing near its low, each opening within the prior body. Strong bearish reversal/continuation.

Three consecutive long green candles, each closing near its high, each opening within the prior candle's body. Strong bullish continuation/reversal.

Post-breakout retracement that retests the broken level. Throwback = retest from above (after upside break); pullback = retest from below (after downside break).

Consolidation pattern with converging trendlines. Ascending (flat top, rising bottom), descending (flat bottom, falling top), or symmetrical (both lines converging).

Three peaks (top) or three lows (bottom) at roughly the same level, signaling repeated rejection. Stronger than a double but rarer.

Average price over time, equally weighted (no volume weighting). Used as execution benchmark for algorithmic orders distributed evenly over a window.

Two-candle pattern: two consecutive candles with matching highs (tweezer top) or matching lows (tweezer bottom). Indicates strong rejection at a level.

Volume distribution across price levels (not time). High-Volume Nodes (HVN) act as magnets; Low-Volume Nodes (LVN) act as breakout zones. POC = Point of Control, highest-volume price.

Volume-weighted average price for the trading session. Institutional benchmark — most institutional execution measured against VWAP.

Elliott labels waves by degree (Grand Supercycle, Cycle, Primary, Intermediate, Minor, Minute…). Distinguishes time-scale of each wave count.

Converging-trendline consolidation that slopes uniformly up or down. Rising wedge = bearish; falling wedge = bullish (counter-intuitive but reliable).