Data smoothing uses an algorithm to remove noise from a data set, allowing you to highlight important patterns.
Data smoothing can be used to predict trends, such as those seen in security prices.
Various data smoothing models include a random method using moving averages.
While data smoothing can help predict certain trends, it will inherently reduce the amount of information in the sample, which can result in certain data points being ignored.
A cup and handle is a technical charting pattern that resembles a cup and handle, where the cup is shaped like a “U” and the handle is slightly offset downwards.
The Dow Theory is a technical framework that predicts that a market is in an uptrend if one of its moving averages rises above a previous important high, followed or followed by a similar rise in the other moving average.
Elliott Wave Theory is a form of technical analysis that looks for recurring long-term price patterns associated with constant changes in investor sentiment and psychology.
Mean reversion in finance assumes that various phenomena of interest, such as asset prices and earnings volatility, eventually return to their long-term average levels.
Negative or inverse correlation describes when two variables tend to move in the opposite direction and magnitude relative to each other, so that when one variable increases, the other variable decreases, and vice versa.
Oversold is a subjective term. Because all traders and analysts use different instruments, some may see an asset oversold while others will see an asset drop even further.
The unique Three Rivers pattern consists of three candles in sequence: a long real body down, a hammer making a new low, and a third candle with a small up real body that stays within the hammer’s range.
Elliott Wave Theory is a form of technical analysis that looks for recurring long-term price patterns associated with constant changes in investor sentiment and psychology.