Linear regression channel

This indicator is a channel formed by two lines parallel to the trend line. What it indicates is a zone of resistance and a zone of support that the price could reach. Each section, or zone, shows a maximum range of price deviation and a minimum range as far as it could go. It is … Read more


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We already saw that by drawing trend lines we could tell in which direction prices are moving (up, down or sideways). If we extend that line to the end of the chart, we have a notion of how far the price could go in a given time. But only in that direction. Channels, on the … Read more

Chart Patterns

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Chart patterns or price formations are patterns that are seen on asset price charts, the price is forming these patterns and are the basis of technical analysis. They seek to measure the reactions of market participants, whether they are euphoric or fearful and act accordingly. In other words, they have predictive value. Traders study and … Read more

Different time frames

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Multiple time frames in trading As we saw before, when we observe a Japanese candlestick, we will have as information the opening, closing, maximum and minimum price. Regardless of the time frame we are looking at. The candlestick information is exactly the same “in that time frame”, but it will be different in a lower … Read more

Trading Volume

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Definition of trading Volume Volume is a figure that tells us the number of trades closed in a given time frame of an asset. In other words, it only tells us the number of securities traded: when someone buys, someone sold, so it measures the number of transactions. It is fundamental for decision making, as … Read more

Market Cycles

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What is a Market Cycle? Market cycles are the trends or patterns that may exist in a given market environment. Short-, medium- and long-term market cycles can be distinguished, with smaller market cycles being part of larger cycles. All markets are cyclical. When one cycle ends, the next one begins. Regardless of the time frame … Read more

Trend Analysis

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Definition of Trend Analysis The trend is the direction of the market, ETF or stock we are watching. There is a famous saying in the stock market that says “the trend is our friend”, referring to the fact that you have to trade in favour of the trend, which you have to determine in order … Read more

Supports & resistances

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Support: An area on the chart where the price stops when it goes down. In other words, the price stops falling at that level. Resistance: An area of the chart where the price stops rising when it rises. That is, the price stops rising to that level. How to indentify Support and Resistance? Supports occur … Read more