Documentation Center
Knowledge articles on Technical Analysis Indicators, Chart and Candlestick Patterns supported by ChartMill stock charts and stock screener.
Indicators
Accumulated Volume Indicator
The Accumulated Volume Technical indicator on the charts.
VWAP (Anchored and Moving)
The Moving or Anchored VWAP (Volume Weighted Average Price) indicator is available in the ChartMill stock charts.
ATR based stop (chandelier stop)
An indicator to show the value of a stop with distance based on the Average True Range
Chartmill Channels
A Chartmill Channel is a horizontal channel wherein prices move sideways
Chartmill Trend Indicator
The Chartmill Trend Indicator indicates whether a trend is positive, negative or neutral.
Relative Strength
Relative Strength measures price performance of a stock relative to the other stocks in the market.
Dorsey Relative Strength
Dorsey Relative Strength compares the security to an index
Mansfield Relative Strength
Mansfield Relative Strength as used by Stan Weinstein
Pocket Pivots
A Pocket Pivot is a price/volume pattern that reveals an interest of large players and is available in our charts and stock screener.
Chartmill Market Breadth Indicators
Some market breadth chart indicators provided by ChartMill
5BP and 7BP Swing Point or Fractal Stop
An indicator to show the value of a stop which is moved on swingpoints
Effective Volume (EV) and Effective Ratio (DER)
Effective Volume looks at intraday volume to analyze accumulation and distribution by large players
Strong Stocks
Strong stocks are consistent strong performers in the market
Trend Intensity Indicator
The Trend Intensity indicator measures the strength of the trend.
Overbought or Oversold: Chartmill Value Indicator and Dynamic RSI
Using the Chartmill Value Indicator and Dynamic RSI to find overbought or oversold levels
Chartmill Technical Rating and Setup Quality scores
View the technical health and setup quality of any stock with these ChartMill ratings.
Chartmill Consolidated Support and Resistance
Consolidated Support and Resistance combine support and resistance from several indicators and time frames
Weinstein stage analysis in chartmill
Weinstein stage analysis in the ChartMill charts and screener
The RSI Indicator and Trading Strategies
The Relative Strength Index (RSI) Indicator is a technical analysis momentum indicator which finds overbought and oversold conditions.
The MACD Indicator - Moving Average Convergence and Divergence
The MACD indicator is a technical analysis indicator used to determine the strength, direction and duration of a trend. This article it about its practical usage.
How To Find Support and Resistance?
Learn how to find support and resistance levels using technical analysis tools, such as horizontal and diagonal trend lines, moving averages, and Fibonacci retracements.
The Simple Moving Average (SMA)
The Simple Moving Average, definition and Formula
The Exponential Moving Average (EMA)
The Exponential Moving Average | Definition and Formula
The Smoothed Moving Average (SMMA)
The Smoothed Moving Average, definition and Formula
How to Use Moving Averages to Determine the Trend?
Moving averages are an ideal tool to determine the price trend of a share. How to do that and which things to take into account is discussed in the article below.
Understanding the Stochastic Oscillator
The stochastic oscillator dates back to the late 1950s and was developed by George Lane who was part of a group of futures traders. His buying and selling decisions were mainly based on technical analysis.
Understanding the Fast, Slow and Full Stochastics
This is a follow-up to the first basic article around the Stochastic indicator. In ChartMill, there are 3 different variants available, the Fast, Slow and Full Stochastic.
Understanding the Stochastics RSI Indicator
The Stochastic RSI - like the regular Stochastic indicator - is a momentum indicator used primarily to identify overbought or oversold levels. The difference with the ordinary Stochastics indicator is that the Stoch RSI relies on the RSI values and not on
Average True Range (ATR) Volatility Indicator
The Average True Range (ATR), developed by J. Welles Wilder, is an indicator in technical analysis which measures the average volatility of the underlying asset. To do so, it calculates the average of the True Range over a predetermined period.
Keltner Channels
Keltner Channels are used to identify price levels where the existing trend changes direction at the time the price breaks out of the channel or to visualize overbought and oversold levels in consolidating markets.
Understanding the Force Index Indicator
The Force Index Indicator, developed by Alexander Elder, uses price change in combination with volume to identify the strength of a price movement.
Understanding the On Balance Volume indicator (OBV)
The On Balance Volume Indicator (OBV) is a momentum indicator. It plots volume against price changes. The OBV indicator can rise, fall or stay the same. This solely depends on how the price evolves.
Understanding the Aroon Indicator
The Aroon-indicator is used to discover and anticipate new potential trends early on, identify sideways markets but also to visualize correction periods within existing trends. It is a very versatile indicator but it takes some practice to learn to interp
How to use the Awesome Oscillator?
The awesome oscillator is a momentum indicator that provides insight into how strong or how weak a stock is performing. This is done by comparing the recent market momentum with the more general momentum over a longer period in the past. This confirms exi
How To Use the Money Flow Index?
The Moneyflow Index is a typical momentum indicator that indicates the extent to which there is inflow or outflow of market capital. In this way the underlying money flows are visualized.
The Alligator Indicator explained
The Alligator indicator consists of 3 different smoothed moving averages and is useful for recognizing price trends.
Bollinger Bands Explained
A very popular and widely used technical indicator are the Bollinger Bands, developed by John Bollinger. The indicator is used to measure the volatility (the degree of movement) of a stock or any other financial instrument.
Keltner Channels vs Bollinger Bands: Which One Is Better For Trading?
In this article, we will explore the similarities and differences between Keltner Channels and Bollinger Bands and help you decide which indicator may be better suited for your trading style.
Support and Resistance Indicators Which One to Choose?
There is no one best support and resistance indicator, but combining several technical indicators provides more confidence. Moving averages, Bollinger Bands, Fibonacci retracements, and pivot points can serve as dynamic support and resistance zones. Relative Strength Index (RSI) can be used as a confirmation signal.
Candlestick Patterns
The Bullish Engulfing Pattern: A Powerfull Candlestick Pattern For Trend Reversal Trading
The Bullish Engulfing Pattern is a powerful candlestick pattern for trend reversal trading. Learn how this pattern forms, how to recognize it, and how to use it in a profitable trading strategy.
The Bearish Engulfing Pattern | Definition
Understanding the Bearish Engulfing Pattern
The Bullish Harami Pattern | Definition, Interpretation and Trading Strategy
The Bullish Harami pattern is formed by two candles. The first candle is a negative (bearish) candle where shortly after the opening the price falls and by the end of the trading day, it closes near the daily low. As a result, a fairly long body is visible, as a sign of a clear negative trend.
The Bearish Harami Pattern | Definition
A bearish harami is a pattern that indicates a top when it is preceded by a price increase. It is a two-candle bearish reversal pattern.
The Bullish Hammer Candlestick Pattern | Definition
The bullish hammer pattern is a candlestick pattern in technical analysis that proves especially useful in active swing trading strategies in which the pattern is used as a warning signal that an existing bearish trend could reverse.
Understanding the Gravestone Doji: A Bearish Reversal Warning Signal in Trading
The gravestone doji candle pattern is considered a bearish reversal signal in a bullish trend. The candle is characterized by a significant upper shadow but the open, low and closing price are ultimately very close together. This indicates investor doubt about the prevailing trend.
The Dragonfly Doji: a Candlestick Pattern to Recognize New Bullish Trends in an Early Stage.
The dragonfly doji is a Japanese candlestick pattern consisting of only one candle. It is used to identify reversal patterns after a bearish price trend.
The Shooting Star Candle in Stock Trading
A shooting star candle is characterized by a small real body located at the lower end of the candle, with a long upper shadow and little to no lower shadow.
Understanding the Dark Cloud Cover Pattern in Trading
The Dark Cloud Cover is a bearish reversal candlestick pattern that consists of two candlesticks, with the first being a long bullish candlestick (white or green) and the second being a long bearish candlestick (black or red).
Chart Patterns
Bull Flags (and pennants) | Definition
Bull Flags and Pennants are powerful chart patterns in technical analysis. The are called 'continuation patterns' as the flag embeds prices that are consolidating in a range after a strong move up.
Ascending Triangle Pattern
The ascending triangle pattern is a bullish continuation chart pattern in technical analysis formed by a rising trendline and a horizontal resistance line.
The Golden Cross and Death Cross | Definition
The Golden Cross and Death Cross are popular concepts within the arsenal of tools in technical analysis. They are patterns created by combining two moving averages.
Descending Triangle Pattern
A Descending Triangle Chart Pattern is a bearish continuation pattern. It is formed when prices are trapped between a descending trendline and a horizontal support line. The trendline and support line are forming a triangle, a right angle triangle even.
Symmetric Triangle Pattern
A symmetrical triangle is a technical analysis chart pattern characterized by a converging upwards trend line with a downwards resistance line.
Cup and Handle Pattern
The cup and handle chart pattern is one of many classic chart patterns within technical analysis. The pattern literally has the shape of a 'cup with handle', hence the name.
Bear Flags (and pennants) | Definition
Bear Flags and Pennants are powerful chart patterns in technical analysis. The are called 'continuation patterns' as the flag embeds prices that are consolidating in a range after a strong move down.
Triangle Chart Patterns
Triangle patterns are well-known chart patterns within the field of technical analysis. They exist in different formations, bullish, bearish or symmetrical.
Rising Wedge Pattern
A rising wedge is a chart pattern characterized by two rising trend lines running in the same direction but with different slopes. The lower trend line is steeper than the upper trend line which in itself is a sign that buyers are moving increasingly faster into the market during intermediate price dips.
Falling Wedge Pattern
A falling wedge has two descending trend lines. Both trend lines run in the same direction but each has a different slope.
Wedge chart patterns
Wedge patterns are considered reversal patterns within technical analysis. The wedge formation consists of a support and resistance line running in the same direction but with different slopes. The formation gradually narrows until eventually the lower or upper trend line is broken, leading to a buy or sell signal.
Head and Shoulders Pattern
The head and shoulders pattern is one of the most well-known technical patterns within the field of technical analysis. The pattern is characterized by the presence of 3 consecutive price tops with the middle top being the highest.
Double Bottom
A double bottom is a well-known chart pattern within technical analysis and is considered an early bullish reversal pattern. It indicates an imminent trend reversal after a downtrend.
Triple Bottom
The triple bottom pattern is an extension of the double bottom pattern and is also cataloged as a bullish reversal pattern.
Diamond Formation
The diamond chart pattern is a technical pattern that can occur either at the end of a falling or rising trend. It is a powerful reversal pattern that - *unlike many other technical patterns* - can only be observed rather exceptionally.
Rounding Bottom Pattern
The rounding bottom, also called a saucer bottom is a bullish reversal pattern within the field of technical analysis. The rounding bottom contains the absolute low and the pattern itself is the actual 'bottoming out'-process that takes at least weeks and sometimes even months.
Ascending Price Channel
An ascending price channel is formed by two rising trend lines running parallel to each other. This creates the pattern of higher tops and higher bottoms, also called price swings.
Descending Price Channel
The descending price channel forms through a succession of lower tops and lower bottoms. When the respective tops and bottoms are connected, two descending trend lines parallel to each other are created.
Double Top
A double top is a bearish reversal pattern and is thus the counterpart of the double bottom pattern. The pattern is a first tentative indication that the current bullish trend is coming to an end and the chances of a bearish trend change are present.
Classic Chart Patterns
Chart patterns are a common tool used by traders to identify potential trading opportunities in the financial markets. These patterns are formed by the price action of a security, and can provide valuable information about the direction in which the price is likely to move.
Stock gapping
A gap is a break in the price chart of a security, which occurs when the price of a security suddenly rises or falls sharply, causing certain price levels to be skipped so that no trading takes place at those levels.