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TERM OF THE DAY

In technical analysis, a false signal refers to an indication of future price movements that gives an inaccurate picture of the economic reality. False signals may arise due to a number of factors, including timing lags, irregularities in data sources, smoothing methods, or the algorithm by which the indicator is calculated.

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A Renko chart, developed by the Japanese, is built using fixed price movements of a specified magnitude. This differs from more traditional charts that show price changes over a fixed time periods. Read more

Noise: What it Means, Cause, Alternatives

In a broad analytical context, noise refers to information or activity that confuses or misrepresents genuine underlying trends. Read more

Heikin-Ashi Technique Definition and Formula

The Heikin-Ashi technique averages price data to create a Japanese candlestick chart that filters out market noise. Read more

Relative Strength Index (RSI) Indicator Explained With Formula

The Relative Strength Index (RSI) is a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions. Read more

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